ANALYSIS OF MARKET STRUCTURE OF GROUNDNUT (Arachis hypogaea L.) IN GOMBI LOCAL GOVERNMENT AREA, ADAMAWA STATE, NIGERIA

The study analyzed the market structure of groundnut in Gombi Local Government Area of Adamawa State, Nigeria. The specific objectives were to describe socio-economic characteristics of the respondents, determine the structure of groundnut market, and assess the efficiency of groundnut market. Purposive and random sampling techniques were employed in selecting 150 groundnut traders from Kasuwan Buhu, Kasuwan Ganji, Kasuwan Tashan Marghi and Kasuwan Butu. Data were analysed using descriptive statistics, Hirschman-Herfindahl index and Shepherd Futrel index. The findings showed that 98.08% and 78.79% of the wholesalers and retailers were male, with mean age of 35years and 37years for wholesalers and retailers respectively. Similarly, 96.08% and 87.88% of wholesalers and retailers had formal education, with a mean household size of 5 and 6 persons for wholesalers and retailers respectively. Marketing experience of 9.80 years and 9.11 years for wholesalers and retailers was observed with 78.43% and 93.94% of wholesalers and retailers had no access to credit facilities. It was also observed that 84.31% and 91.92% of the wholesalers and retailers belonged to Gombi Local Government grain traders union. Hirschman Herfindahl Index of 0.02 and 0.01 in wholesalers and retailers were obtained indicating competitive market for both categories. Price discrimination was noted for both market functionaries due to variability of the groundnut products, but fairly stabilizes due to the transparency of the market. Futrel index for marketing efficiency score of 5.50% and 6.73% in wholesalers and retailers respectively were obtained indicating market inefficiency for both functionaries. It was concluded that groundnut trading in the study area was gender biased, competitive, but not efficient. Based on the findings, it was recommended there is need to encourage female participation in order to have a fair gender ratio, and guarantee price should be fixed by the government and marketing agencies so as to curtail incessant seasonal variations in the price of groundnut and its products.