IDEAS home Printed from https://ideas.repec.org/a/ags/naaenj/267448.html

Improving agricultural marketing efficiency through the commodity exchange system in Nigeria: a review

Author

Listed:
  • Issa, F.O.
  • Fapojuwo, O.E.
  • Bidoli, T.D.

Abstract

The characteristic of informal marketing (exemplified by black maketeering, smuggling, hoarding, haggling, lack of standards, wastage during harvest periods, as well as poor infrastructural supports) in the Nigerian agriculture, which has remained a major clog in the wheel of agricultural and economic development progress is very disturbing. It involves farm inputs and farm outputs as well as traded and non-traded commodities. This prevailing disorder in Nigeria, since the abolition of the ‘commodity board’ in 1987, makes farming business more risky and unstable thereby making farm operators to be in the dark as to what to produce, when and where to produce, how to obtain inputs and what the right prices are. This paper x-rays this disorder and recommends the establishment of commodity exchange as a measure to ameliorate the inefficient marketing arrangements in the country’s agriculture. It analyses the fundamentals and features of commodity exchange with examples around the World. It further identified the risks involved and how the risks can be reduced. Importantly, the paper discussed the modalities for establishing the commodity exchange in the Nigerian situation specifying the roles of extension agency.

Suggested Citation

  • Issa, F.O. & Fapojuwo, O.E. & Bidoli, T.D., 2011. "Improving agricultural marketing efficiency through the commodity exchange system in Nigeria: a review," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 2(01).
    • Handle: RePEc:ags:naaenj:267448
    DOI: 10.22004/ag.econ.267448
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/267448/files/Volume%202%20%281%29_Issa.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/267448/files/Volume%202%20%281%29_Issa.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.267448?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Coulter, J. & Onumah, G., 2002. "The role of warehouse receipt systems in enhanced commodity marketing and rural livelihoods in Africa," Food Policy, Elsevier, vol. 27(4), pages 319-337, August.
    2. Fafchamps, Marcel & Gabre-Madhin, Eleni Z., 2006. "Agricultural markets in Benin and Malawi," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 1(01), pages 1-28, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kohnert, Dirk, 2025. "Seeding Growth: Unlocking the Potential of Agricultural Commodity Exchanges in Sub-Saharan Africa," MPRA Paper 125200, University Library of Munich, Germany.
    2. Kohnert, Dirk, 2025. "Semer la croissance: Libérer le potentiel des bourses de produits agricoles en Afrique subsaharienne [Seeding Growth: Unlocking the Potential of Agricultural Commodity Exchanges in Sub-Saharan Africa]," MPRA Paper 125237, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Admire Katunga & Edilegnaw Wale Zegeye & Gerald Ortmann, 2021. "Structure and entry barriers to access groundnut markets for intermediary traders in central and northern Malawi," Agrekon, Taylor & Francis Journals, vol. 60(3), pages 264-279, July.
    2. Aoudji, Augustin K.N. & Adégbidi, Anselme & Agbo, Valentin & Atindogbé, Gilbert & Toyi, Mireille S.S. & Yêvidé, Armand S.I. & Ganglo, Jean C. & Lebailly, Philippe, 2012. "Functioning of farm-grown timber value chains: Lessons from the smallholder-produced teak (Tectona grandis L.f.) poles value chain in Southern Benin," Forest Policy and Economics, Elsevier, vol. 15(C), pages 98-107.
    3. Felix Lung & Cristina Stefan, 2020. "Agriculture Risk Financing in Southern Africa," World Bank Publications - Reports 34314, The World Bank Group.
    4. Tristan Le Cotty & Elodie Maître d'Hôtel & Julie Subervie, 2019. "Inventory credit to enhance food security in Africa," CIRED Working Papers hal-02018715, HAL.
    5. Abdoulaye, Tahirou & Sanders, John H., 2006. "New technologies, marketing strategies and public policy for traditional food crops: Millet in Niger," Agricultural Systems, Elsevier, vol. 90(1-3), pages 272-292, October.
    6. Kwamina E. Banson & Nam C. Nguyen & Ockie J. H. Bosch & Thich V. Nguyen, 2015. "A Systems Thinking Approach to Address the Complexity of Agribusiness for Sustainable Development in Africa: A Case Study in Ghana," Systems Research and Behavioral Science, Wiley Blackwell, vol. 32(6), pages 672-688, November.
    7. Ministry of Agriculture (Liberia), 2007. "Comprehensive Assessment of the Agriculture Sector in Liberia : Volume 1, Synthesis Report," World Bank Publications - Reports 7677, The World Bank Group.
    8. Neven, David & Katjiuongua, Hikuepi & Adjosoediro, Ingrid & Reardon, Thomas & Chuzu, Pia Nwanza & Tembo, Gelson & Ndiyoi, Mukelabai, 2006. "Food Sector Transformation and Standards in Zambia: Smallholder Farmer Participation and Growth in the Dairy Sector," Staff Paper Series 11701, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. World Bank, 2005. "Managing Food Price Risks and Instability in an Environment of Market Liberalization," World Bank Publications - Reports 8264, The World Bank Group.
    10. Blume, Lawrence E. & Easley, David & Kleinberg, Jon & Tardos, Éva, 2009. "Trading networks with price-setting agents," Games and Economic Behavior, Elsevier, vol. 67(1), pages 36-50, September.
    11. Camilla Andersson & Mintewab Bezabih & Andrea Mannberg, 2015. "The Ethiopian Commodity Exchange and spatial price dispersion," GRI Working Papers 204, Grantham Research Institute on Climate Change and the Environment.
    12. repec:ags:ijag24:345256 is not listed on IDEAS
    13. Poulton, Colin & Macartney, Jon, 2012. "Can Public–Private Partnerships Leverage Private Investment in Agricultural Value Chains in Africa? A Preliminary Review," World Development, Elsevier, vol. 40(1), pages 96-109.
    14. repec:ers:journl:v:xxiv:y:2021:i:special1:p:1260-1286 is not listed on IDEAS
    15. Okello, Julius J. & Kirui, Oliver K. & Gitonga, Zachary M. & Njiraini, Georgina W. & Nzuma, Jonathan M., 2014. "Determinants of Awareness and Use ICT-based Market Information Services in Developing-Country Agriculture: The Case of Smallholder Farmers in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-20, August.
    16. Li, MingDa & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas, 2026. "Unpacking interstate tomato trade in Nigeria: A Gravity-Based Structural PPML Approach," 100th Annual Conference, March 23-25, 2026, Wadham College, University of Oxford, Oxford, UK 397920, Agricultural Economics Society (AES).
    17. Smith A. R. Dossou & Jean Adanguidi & Augustin K. N. Aoudji & Rodrigue C. Gbedomon, 2022. "Promotion of beekeeping: Insights from an empirical analysis of three honey value chains in Benin," Natural Resources Forum, Blackwell Publishing, vol. 46(1), pages 39-59, February.
    18. Esin Hazneci, 2025. "Possible Effects of Licensed Warehousing System on Hazelnut Producers’ Incomes in Türkiye," Sustainability, MDPI, vol. 17(6), pages 1-13, March.
    19. Kelly, Valerie A., 2005. "Farmers' Demand for Fertilizer in Sub-Saharan Africa," Staff Paper Series 11612, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    20. Tharakan, Joe & Lefèvre, Mélanie, 2011. "Intermediaries, transport costs and interlinked transactions," CEPR Discussion Papers 8615, Centre for Economic Policy Research.
    21. Dalheimer, Bernhard & Fiankor, Dela-Dem Doe, 2022. "Food Production Shocks and Agricultural Supply Elasticities in Sub-Saharan Africa," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322168, Agricultural and Applied Economics Association.
    22. Arouna Dissa & Jos Bijman & Maja Slingerland & Ousmane Mama Sanogo & Ken E Giller & Katrien Descheemaeker, 2022. "Growing cotton to produce food: Unravelling interactions between value chains in southern Mali," Development Policy Review, Overseas Development Institute, vol. 40(5), September.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:naaenj:267448. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/naaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.