A Comprehensive Analysis of Market Structure-Conduct-Performance of Sugarcane (Saccharum officinarum L.) in North Central Nigeria

Abstract

This study investigates the market structure, conduct, and performance of sugarcane in North Central Nigeria. Employing a multi-stage sampling approach, 235 sugarcane marketers were randomly selected from a pool of 575 using the Slovin’s formula. Primary data was collected through structured questionnaires and analyzed using the Gini coefficient, Lorenz curve, marketing margin, and marketing efficiency model. Market analysis reveals income inequality, with Gini coefficients ranging from 0.61 to 0.72. The closer the value of gini coefficient is to unity, the greater is the degree of income inequality and the higher is the level of concentration of sellers and vice versa. The diagonal connecting points of (0, 0) and (1, 1) on the Lorenz curve depicts the 450 line or line of perfect equality. The graph showed the cumulative percentage of sugarcane marketers against the cumulative percentage (%) of sugarcane total sales or income which reveals that the market is an imperfect market. The study identifies pricing factors influencing market conduct, with net margins and profitability ratios confirming sugarcane marketing as profitable. Sensitivity analysis suggests potential profit optimization by reducing transportation and storage costs. The study concludes that sugarcane marketing is profitable in North Central Nigeria and recommends interventions such as establishing training centers, offering capacity-building workshops, implementing flexible credit policies, and enhancing security for marketers.