Price Determinant of Kolanut in Selected Markets in Ibadan, Oyo State, Nigeria

Abstract

The study was carried out to examine the price determinants of Kolanuts in selected markets in Ibadan, Oyo State. Eighty(80) Kolanuts sellers were randomly selected from four(4) urban Local Government Areas in Ibadan where four(4) Kolanut markets center were also visited. The data collected were subjected to descriptive statistics, Gross Margin and multiple Regression analysis. The results indicated that majority (97%) of Kolanut sellers in the study area were females. It was observed that (48%) of the respondents belong to the age bracket of 41-50years while (66.3%) of the respondents had primary and secondary education. Gross margin analysis showed that seven hundred and twenty three thousand, three hundred and fifty naira (₦723, 350.00) was realized as profit margin after the total variable cost(TVC) of two hundred and three thousand, four hundred and fifty naira(₦203,450.00) have been deducted as cost obtained. The results of multiple regression shows that the R2 (0.67) is high and that E-statistics further explained the ability of the independent variables in explaining the variations in the dependent variable. It was found out that slight changes in any of the explanatory variable will result in downward / upward movement in the market price of kolanut in the study area. It is imperative that more research should be carried out for more varieties of kolanut which could enhance more demand and marketing.