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Analysis of Market Margins and Marketing Efficiency in the Soybean Supply Chain: Evidence From Baruteen Lga, Kwara State

Year: 2024
Type: article
Abstract: Soyabean is produced mainly in small holder farms in Baruteen LGA of Kwara State, but thesoybean marketers in Baruteen are faced with a lot of challenges ranging from high transactioncosts, fluctuations in soybeans prices, limited storage capacity, access to credit, down toinadequate distribution networks. This making profit maximization difficult. This studyexamines the market margin and efficiency of wholesaler soybean supply chain in Baruteen,Nigeria. Data for study were obtained from primary sources with the aid of a well-structuredquestionnaire. The study used cost-benefit analysis to estimate market margin and marketingefficiency of soybeans. Our results show that an average of 17.5bags were sold by marketersat every market day with average profit margin per marketer of ₦5,188, and a market marginof 33.14%. However, the marketing efficiency of soybean in the area is relatively low, at15.37%. These findings suggest that while the sales of soybeans are profitable in Baruteen,there are inefficiencies in the marketing channel that need to be addressed in order to improvethe performance of the soybean marketers. The study recommends strategies to improvemarketing efficiency, such as reducing transaction costs, improving market access, andenhancing the productivity of soybean marketers.
Language: English
Open Access status: diamond
OpenAlex ID: W7007958097
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