Analysis of Structure, Conduct and Performance (SCP) of Palm Oil Market Intermediaries in Edo State, Nigeria

Purpose: The specific purpose of this study was to investigate the degree of concentration, pricing mechanisms, market performance, entry barriers and challenges faced by palm oil market intermediaries in Edo State, Nigeria. Cost factors affecting profitability across the intermediaries were explored, providing insights to improve regulation, infrastructure and collaboration thereby streamlining the supply chain and reducing inefficiencies across the intermediaries.Research method: This research was conducted in Ovia North East Local Government Area, Edo State, purposively selected for its agricultural production, including palm oil. A multistage sampling technique was used in selecting 90 respondents from three communities based on high palm oil marketing activity. Data was obtained using a structured questionnaire from processors, wholesalers and retailers. The market structure was analyzed using the Gini coefficient, while market conduct examined pricing, grading, and trade association influence. Market performance was assessed through profitability measures, and descriptive statistics highlighted socioeconomic characteristics and limitations affecting participants.Findings and Values: The palm oil market structure is highly concentrated, with processors (0.87) and wholesalers (0.70) dominating sales, while retailers (0.49) operate competitively. Trade associations restrict entry, limiting competition. Price determination relies on personal or institutional negotiation rather than pure market forces (8.9%), reducing consumer control. Quality-based product differentiation ensures a structured approach to market segmentation and pricing strategies. High transportation and storage costs (23.8% of TVC) affect profitability especially, for processors. Wholesalers capture a disproportionate profit share (63.16%) versus processors (46.71%) and retailers (20.79%), reflecting market inefficiencies. Poor infrastructure, storage, levies, and transportation hinder efficiency, requiring regulatory interventions for market improvements.