Primal-Dual Links to Spatial Equilibrium Market Model for Palm Oil in Nigeria

L. O. E. Nwauwa, K. O. Adenegan, M. A. Y. Rahji and Oluwafemi Zaccheaus Olaniyi
Additional contact information
L. O. E. Nwauwa: Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria
K. O. Adenegan: Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria
M. A. Y. Rahji: Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria
Oluwafemi Zaccheaus Olaniyi: Department of Agricultural Economics, Oyo State College of Agriculture and Technology Igboora, Oyo State, Nigeria

International Journal of Operations Research and Information Systems (IJORIS), 2016, vol. 7, issue 1, 58-73

Abstract: Distribution of agricultural produce is undertaken to bridge the gap between production and consumption arising due to spatial separation between areas of surplus and deficit. An investigation of primal-dual links to spatial equilibrium model and integration of palm oil markets in Nigeria was carried out using transportation model. Two-stage sampling technique was used to collect data from 3 markets and 276 distributors. Data were analyzed using linear programing model. Average cost of transportation per mode was bus (N17,173), truck (N10,357) and lorry (N5,831) respectively. Total transportation cost of N347,809,600.6k was observed compared to a minimized objective cost of N142,536,800.30k produced by the program. Highest optimal allocation to the destination markets using the different mode of transportation were Port Harcourt–Lagos by lorry (103,200 MT), Owerri–Maiduguri by truck (21,200 MT) and Ondo–Lagos by bus (19,800 MT) respectively. Subsidized cost of public transport facilities will reduce high cost of transportation.

Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 18/IJORIS.2016010105 (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:igg:joris0:v:7:y:2016:i:1:p:58-73

Access Statistics for this article

International Journal of Operations Research and Information Systems (IJORIS) is currently edited by John Wang

More articles in International Journal of Operations Research and Information Systems (IJORIS) from IGI Global
Bibliographic data for series maintained by Journal Editor ().