Journal of
Agricultural Extension and Rural Development

  • Abbreviation: J. Agric. Ext. Rural Dev
  • Language: English
  • ISSN: 2141-2170
  • DOI: 10.5897/JAERD
  • Start Year: 2009
  • Published Articles: 489

Full Length Research Paper

The structure, conduct and performance of palm oil marketing in Cross River State, Nigeria

N. E. Tiku1*, J. O. Olukosi2, R. A. Omolehin2 and M. O. Oniah1
1Department of Agricultural Economics and Extension, Cross River University of Technology, Obubra Campus Nigeria. 2Department of Agricultural Economics and Sociology, Ahmadu Bello University, Nigeria.
Email: [email protected]

  •  Accepted: 22 September 2009
  •  Published: 31 December 2012


The business of palm oil in Nigeria has undergone successive marketing arrangements, each with its inherent deficiencies. The paper examined the structure, conduct and performance of palm oil marking in Cross River State, Nigeria. The study adopted the multi-stage sampling techniques in the selection of 6 local Government Areas, 18 Villages, 180 processes, 90 commissioned agents, 90 retailers and 30 merchants for the study. The descriptive statistics, the Gini-co-efficient combined with the Lorenz curve was used to determined the degree of market concentration among the participates; the marking margin analysis was employed to measure the performance of palm oil marketing in Cross River State. The result reveals that the Gini Value for processors, commissioned agents, Merchants and retailers was 59, 54, 65 and 32% respectively. The overall performance of the market was 41.43%, while the processors received 37.17% of the market share, while merchant 29%, retailers 26% and commissioned agent 7.8%. Generally, the market was observed to be a pure market competition as no individual trader has market power to influence the market prices. The paper recommended that more research should be conducted to improve the reddish colour of hybrid palm oil to avoid marketer adding colour substances to the palm oil in attempt to improve the colour to attract customers.


Key words: Palm oil market structure, conduct and performance.