DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA

Toyin Benedict Ajibade, Opeyemi Eyitayo Ayinde and Tahirou Abdoulaye

Review of Agricultural and Applied Economics (RAAE), 2019, vol. 22, issue 01

Abstract: Having the mandate of achieving food security in Nigeria, commendable efforts have been geared towards food production in the nation. Albeit the increasing production, price volatility has continued to perpetuate in food markets in Nigeria hence attaining food affordability, a precondition for food security, remains a mirage. An innovative approach to the food challenge therefore, may be to understand the food markets dynamics such as to gain insight into how the market works. In this study we focus on maize, a very important staple in Nigeria. We seek to identify the point of price discovery and markets that significantly influence price of maize. In furtherance, we examine the dynamic relationship existing among the markets and explored the responsiveness of the markets to price signals from the other markets. Our results showed that most of the markets examined behave in such a manner expected of open market however full market integration has not been achieved. It was revealed that prices of maize are discovered from major food market in the deficit production zone. Majority of the markets were responsive to one-time price shock from itself, although exhibiting exogeneity in the contemporaneous period but becoming endogenous by the long run (whereby other markets majorly influenced prices) hence indicating that the markets had commendable informational influence on one another. The study therefore recommended installing infrastructure for linkage of production with the demand zones if price stabilization is to be achieved. Regulatory bodies should also check activities of cartels in the influential markets.

Keywords: Agribusiness; Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/285930/files/RAAE_1_2019_Ajibade_et_al.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:roaaec:285930

DOI: 10.22004/ag.econ.285930

Access Statistics for this article

More articles in Review of Agricultural and Applied Economics (RAAE) from Faculty of Economics and Management, Slovak Agricultural University in Nitra Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().