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PRICING OF AGRICULTURAL PRODUCTS (A CASE STUDY OF SORGHUM SUPPLIER IN ENUGU METROPOLIS)

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Pricing is much more of an uncontrollable variable for the agricultural producer especially in the short run. In the first place, agricultural producers come in small operating units produce homogenous products and cannot influence supply situation in the face of changing demand in the short run. In the long run these producer can influence price b y reducing the acreage cultivated.

According to Kotler (1996 P : 46) price is the amount of money customer pay for the product or service and the time a place of exchange. Munier (1994 : 10) in the quality review of marketing stated that price is the exchange value of a good service and the value of an item is what it can be exchange in the market place, every product and services has it price. It is through price and payment that firms recover their cost of production and active their management of profit.

Price is the monetary expression of value, value is created in utility ,utility is an expression, of usefulness, whole usefulness is based on the potential for nod and want. Satisfaction, value and utility are culturally based while needs and want cultural psychological, sociological and physiological, based, therefore price as an ultimate expression, of needs and want satisfying potential of an item of product or service which has cultural psychological and economic implication on market.

          Edoga and Ani (2000 : 319) noted that price is often used to indicate value when it is paired with the perceived quality of product or service specifically, value can be defined as the ration of perceived quality to price (value perceived quality/price).

This relationship shows that for a given price as perceived, quality increases, value increases. Also for a given price, value decreases. When perceived quality decreases for some product, price itself influence s the perception of quality and ultimate value to consumers. This include transport services.

          Pricing is an important and complete element of the marketing mux and generate the height st level of external interference.

It is a major determinant with volume of goods and service available for the consumer in any economy. Therefore, forms especially those in profit business has both external and internal pricing policies and technique, which are available to achieve its organization objectives.

Adirika Ebue and Nnolim (2001 : 280) stated that while producer in the agricultural sector appear to be price takers, the middle men have considerable influence on the price of the product sold to consumers. This is over and above the necessary add-ons for services and profit performed and is made possible in dealing with small scattered production units.

Monree (1992 : 210) noted that the consumer perception of products quality very directly is with the better  the quality is perceived to be.

          In the view of complex nature of price and its import ants in  the marketing of agricultural products The researcher in this  study takes a look at the pricing of agricultural product with particular interest on ………

1.2     STATEMENT OF PROBLEM

Price is an important marketing mix variable that max a company including agricultural marketers especially in a deregulated economy like ours,

          It is because of the problem of price in agricultural marketing that most often the government come in to stabilized the price.

Government efforts for price stabilization in Nigeria include the purchase of abundant products not necessary at a good price from the farmer.

Price control and sell of  government offered product below the government market price. Sorglunm is an agricultural products used in the manufacturing of beer, the price of  the product has continued to go up over time and this  no doubt   effect  aversively  the cost  of beer production thus, effecting the price of beer. In the view of these, the researcher try to examine white has the price of agricultural products including sorglum not stabilized what are the problem encounter b y the supplier of sorglum in the price setting. All these and many more remain the issues to be tackled in this research work.

1.3             OBJECTIVE OF STUDY.

1.     To determine whether the pricing stem of Agric produce attract customer.

2.     To find out the problem associated with the pricing system of agric produce.

3.     To determine the effect of  pricing system on the profitability of manufacture / farmer agric produce.

4.     To find out the problem associated with the pricing system of agric produce.

5.      To find out our farmer fix their charges.

6.     To make appropriate recommendation on how to improve on the changing system of the agric produce.

1.4               RESEARCH QUESTION

In other to carry out this study effectively the following research question were for mutated.

1.     Does prices system adopted by suppliers of sorlunm in Enugu metropolis due to increases profit?.

2.     Are prices system adopted by supplier of sorglunm in Enugu metropolis due to increases profit 

3.     To what extent is process system adopted by suppliers of sorlunm in Enugu metropolis lead to the repeser purchase of the products.

4.     Do supplier of sorglunm have problem within fixing price of the of the product.

1.5              SIGNIFICANCE OF THE STUDY.

The studyis not an academic exercise, it will have a substantial benefits to the researcher it will widen the research knowledge in research writing and pricing adopted by farmer and manufactures of agric produce.

          It will be of emence benefit to researchers who will find the study as a source of literature review.

Farmers and marketers will find the write up very useful it will help them know how to fix price of Agricultural products. The government also will equally benefit from the study since there are a lot of a the study since the occasionally involved in the pricing of agricultural products.

The costumer of agricultural product will benefit since the product will be appropriately priced.

1.6  SCOPE OF THE STUDY   

          The research was undertaken to examine pricing of  agricultural products. However in the view of the united resource time and other constraints emphasis was placed on the sorglunm supplier in Enugu metropolis.

1.7              LIMITATION STUDY

Many set backs were encountered while writing up this research work on the secondary source data nothing has been writing about the topic in the study area. Most libraries could not quartette reliable literature on agricultural products.

          The level of indifference and ignorance  witnessed in the collection of the research. Honestly the time for this research was definitely inadequate, considering the financial inadequacy perpetuated by the current economic situation prevalent in Nigeria. The researcher did not use it as an excuse for quality.

1.8              DEFINITION OF TERM

Agriculture is the production of animals, fishes, crops and forest resources  for the consumption and other benefit to man.

Price is the determines rate at which goods and services are produced, exchanged and distributed.

Market is where goods and services are brought and sold. Or a place where goods and services are join.

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