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EFFECTS OF PALM PRODUCE DISTRIBUTION ON CONSUMER DEMAND IN NSUKKA AREA OF ENUGU STATE

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Abstract

This research was conducted to evaluate the implication of distribution management of palm produce in Nsukka Area of Enugu State. The major purpose of this study is to examine and identify the factors preventing the effective and efficient distribution of palm produce to producers and consumers in both rural and urban areas in Nsukka Area. Nsukka Area was chosen because of its location as a junction linking several towns of significance in the country and a gateway to the Northern part of the country which endows her with high potential for commercial activities. As a result of the above characteristic, a study of the effective and efficient distribution management of palm produce in Nsukka Area will give a proper insight to the effective and efficient distribution management of these produce in other cities of Nigeria. The survey research design was used employing the instruments of questionnaire and personal interviews as data gathering tools. Data for this study were collected by means of 360 questionnaires distributed by the researcher to the consumers of the palm produce. Data for the study were analysed using both descriptive and inferential statistics. Five hypotheses were formulated to test if there is any significant relationship between producer’s incentive and channel conflict experienced among middlemen in distributing palm produce; significant difference in the effects of transportation palm produce to consumer in rural and urban areas; significant difference in the effects of inadequate capital on large-scale wholesaling and retailing of palm produce; significant association in the effect of poor storage of palm produce and their marketing and consumption, and the significant difference in the adverse effects of artificial scarcity of palm produce on consumers. Based on the hypotheses it was revealed firstly, that there is significant relationship between producer’s incentives and channel conflict experience among the middlemen in distributing palm produce and the most common causes of channel conflict such as lack of teamwork, different attitudes, values or perception, poor communication etc., were identified which led to the downfall of the marketing intermediaries as they deliberately ignore, contradict and bad-mouth one another in distributing palm produce. Secondly, the effect of transportation on palm produce to consumers in rural and urban areas revealed that the palm produce sellers found it difficult to reach a wider market in the rural areas because of poor development of roads and railways. Thirdly, it was also revealed that the effect of inadequate capital for large-scale wholesaling and retailing of palm produce brought about by insufficient working capital led to low inventory, poor sales and low income. Fourthly, there is significant relationship between poor storage of palm produce and their marketing and consumption since the high demand for palm produce and income generation from the produce depends on its quality. And finally, the effects of artificial scarcity of palm produce on consumers showed that the free flow of palm produce would be disrupted as the consumers become exploited by the sellers who charge high prices. We therefore, concluded that the tax of achieving efficiency in the distribution management of palm produce be seen as an integrated one which involves all the players/stakeholders. It is therefore very vital that the causes of channel conflict should be highlighted and the various means of managing these conflicts be proffered to ensure that proper articulation of the overall marketing channels would yield synergistic results. The researcher therefore recommended that: all leaders and the members of palm produce distribution need to be alert to group dynamics that can spillover into conflict; Government should give due attention to infrastructure facilities (e.g. roads, railways) to facilitate the movement of people and goods (palm produce); the financial institutions and Government agencies should be simplify the rigid formalities towards rending and reduce high interest rates to enable the palm produce middlemen source money and expand their business; Adequate Storage or warehousing facilities should be in place either through outright ownership or hire to reduce the problem of palm produce scarcity at all seasons; and finally, the producers and intermediaries of palm produce should imbibe the spirit of change which should be made to feel like a gentle improvement on the past and desist from deliberate hoarding and adulteration of palm produce.