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

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.

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