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Channels of Distribution of Cowpea in Borno State of Nigeria

'gn ()*ur I++ (P,.D!
Deprt+ent o- .r*eting% /niversity o- .iduguri
0+il1 y)*i++2y,oo.3o+

Abstract
4,e study e5+ined t,e two types +r*eting 3,nnels o- distri)ution o- 6gri3ulturl Produ3e in (orno Stte o-
Nigeri. 4,ese re t,e 3onsu+er goods +r*eting 3,nnel s well s t,e industril goods +r*eting 3,nnels.
4,e i+ o- t,e study ws to est)lis, i- t,ere re di--eren3es )etween t,e 3onventionl +r*eting 3,nnels nd
t,t w,i3, is )eing utili7ed -or t,e +ove+ent o- t,e produ3e -ro+ t,e produ3ers to t,e -inl 3onsu+ers in t,e
stte. Dt -or t,e study were 3olle3ted -ro+ )ot, pri+ry nd se3ondry sour3es. 4,e pri+ry dt ws
3olle3ted wit, stru3tured 8uestionnire d+inistered on produ3ers% w,oleslers nd retilers o- gri3ulturl
produ3e in (orno stte. 4,e se3ondry dt ws 3olle3ted -ro+ 9ournls rti3les nd te5t)oo*s. .ulti s+pling
te3,ni8ue ws e+ployed in t,e study. Si+ple rndo+ s+pling ws e+ployed to sele3t one lo3l govern+ent
re. 4,e use o- purposive s+pling ws used to 3pture t,e 3,nnel +e+)ers s well s :;6s t,t relevnt to
t,e study. Des3riptive sttisti3s% 6nlysis o- vrin3e 6N#$6 were used in nly7ing t,e dt. 4,e +9or
-indings o- t,e study s,owed t,ere were no di--eren3es in t,e 3,nnels used in t,e t,ree :o3l ;overn+ent
6res studied ..ost (62.7<! o- t,e 3owpe +r*eters in (orno Stte used t,e 3onventionl +r*eting 3,nnel in
distri)uting t,eir produ3e w,ile =>.=< o- t,e respondents +de use o- not,er 3,nnel t,t ,d +ore nu+)er o-
gents t,n t,e 3onventionl +r*eting 3,nnels. (sed on t,e -indings o- t,e study% it ws re3o++ended t,t
t,e 3onventionl +r*eting 3,nnels s,ould )e trns-or+ed to verti3l +r*eting 3,nnels nd -r+ers s,ould )e
-inn3illy e+powered% en3ourged to -or+ 3oopertives.
Keywords1 C,nnels% distri)ution% Cowpe% +r*eting% gri3ulturl produ3e

Introduction
4,e distri)ution 3,nnel 3onsists o- produ3ers% w,oleslers% retilers% gents nd 3onsu+ers t,t re lin*ed
t,roug, t,e e53,nge pro3ess. 6 good distri)ution 3,nnel s,ould t*e into 33ount not only +r*eting de3ision
)ut lso ,ow goods get to t,e -inl 3onsu+er t reson)le pri3e. In relity ,owever% t,e nu+)er o- prti3ipnts
long t,e distri)ution 3,nnel +*e t,e pri3e o- produ3ts ,ig,er t,n w,t it ordinrily oug,t to )e. 6ll t,ings
)een e8ul% 4,e longer t,e 3,nnel% t,e ,ig,er t,e pri3e t,t 3onsu+er pys -or produ3e.

In distri)ution 3,nnel% ll t,e +e+)ers re ne3essrily e5pe3ted to per-or+ t lest one vlue dded -un3tion
w,i3, t,e ulti+te 3onsu+er pys -or. :oo*ing t t,e role o- e3, inter+ediry?3,nnel +e+)er in t,e
gri3ulturl produ3e +r*et% t,ere is gp )etween t,e e5pe3ted nd t,e 3tul role per-or+ed (.ngison% 2000!.
4ypi3lly t,e return o- e3, inter+ediry s,ould 3o++ensurte wit, t,e ris* t,t ,e t*es. @owever in t,e
6gri3ulturl produ3e +r*et% produ3er t,t t*es ti+e to grow ,is produ3e nd lso t*es t,e ris* o- wet,er
un3ertinties% gets return t,t is less t,n w,t ot,er 3,nnel +e+)ers get. @it,er to t,is period% t,ere e5isted
so+e govern+ent gen3ies li*e t,e +r*eting )ord t,t prote3ted t,e we*er 3,nnel +e+)ers% espe3illy t,e
produ3ers. 4,e li)erli7tion o- gri3ulturl produ3e pved wys -or +ore +iddle+en to repl3e t,e servi3e o-
t,e +r*eting )ords. 4,e gri3ulturl produ3e +r*ets re now 3,r3teri7ed )y entry o- 3,nnel +e+)ers w,o
repl3ed t,e govern+ent gen3ies. 4,is +*es t,e 3,nnel o- distri)ution ine--i3ient nd ,s lso widened t,e
gp )etween t,e -r+ gte pri3e nd t,t w,i3, t,e 3onsu+ers py -or produ3e. 4,e i+ o- t,is pper is to
e5+ine t,e 3,nnels o- distri)ution o- 3owpe in (orno Stte.

C,nnels o- distri)ution +ove produ3ts nd servi3es -ro+ produ3er to 3onsu+er or to ot,er )usiness. 6lso
*nown s +r*eting 3,nnels% 3,nnels o- distri)ution 3onsist o- set o- independent orgni7tion involved in
+*ing produ3t or servi3e vil)le -or use or -or 3onsu+ption ((in3o 2000!. (oone nd Aurn7 2004 de-ine
+r*eting distri)ution 3,nnel s n orgni7ed syste+ o- +r*eting institutions nd t,eir interreltions,ip t,t
pro+otes t,e p,ysi3l distri)ution nd owners,ip o- goods nd servi3es -ro+ produ3er to 3onsu+er or end user.
6lso% *otler nd 6r+strong 2006 de-ine t,e +r*eting 3,nnel s set o- independent orgni7tion involved in
t,e pro3ess o- +*ing produ3ts or servi3e vil)le -or use or -or 3onsu+ption )y t,e 3onsu+er or )usiness
end-user.

4,e 3,oi3e o- distri)ution 3,nnel depends not only on t,e e3ono+i3 o)9e3tives i.e. ,ow to put produ3t to t,e
+r*et t lower 3ost. It lso depends on t,e spe3i-i3 3onstrints o- e3, +r*et nd o- e3, 3,nnel operting
in t,e +r*et. 633ording to Bllis (&C>6! t,e -un3tionl ppro3, )rings to lig,t t,e -un3tion o- distri)ution
3,nnel. D,i3, +ong ot,ers in3ludeE
. Sptil -un3tionE relted to trnsport nd sse+)ly o- produ3ts.
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). 4i+e -un3tionE relted to sto3*ing nd -inn3ing trns3tion.
3. Co++er3il -un3tionE deling wit, produ3t ssort+ent% 3o++uni3tion nd 3usto+er servi3es.

Bils (&C>6! -urt,er pointed out t,t 3ertin -un3tion )e3o+e +ore i+portnt t,n ot,ers. 4,e i+portn3e is in
33ordn3e wit, t,e spe3i-i3 3onstrints o- e3, 3,nnel +e+)er. 6 -r+er t,t ,s 3usto+ers s3ttered out% i-
,e sells dire3tly to 3onsu+ers would py spe3il ttention to sptil -un3tion. S+ll -r+ers wit, li+ited
resour3es% li*e in t,e 3se o- +ost 3owpe -r+ers in (orno stte s opined )y Poly3rp nd (il (200"! would
)e +ore interested in t,e ti+e -un3tion. 6long wit, t,ese 3riteri -or 3,oi3e re lso t,e 3,r3teristi3s o- supply.
4,e ot,er -un3tions t,t 3n 3o+e into ply re lin*ed to t,e environ+ent in w,i3, t,e 3,nnel opertes. 4,ese
-3tors in3lude e3ono+i3 re3ession leding to drop in pur3,sing power. In su3, 3se% produ3er would
-vor s,ort distri)ution 3,nnel% t,ere)y li+iting t,e pro-it +rgins o- e3, 3,nnel (De)u3% 2000!. In (orno
stte% ,owever% t,e isolted settings o- t,e -r+er s well s t,e -inn3il position o- t,e -r+er do not llow t,e
-re8uent use o- dire3t +r*eting 3,nnels. 053ept in -ew 3se s opined )y Folorunso nd D7is (200"! D,ere
t,ey rgued t,t )e3use o- t,e peris, )ility o- t,e produ3e% -r+ers use dire3t distri)ution 3,nnels. 4,ey
-urt,er opined t,t +9ority o- t,e -r+ers reside in rurl res nd t,us re seprted -ro+ t,e 3usto+ers ,en3e
t,e use o- indire3t +r*eting 3,nnels 3nnot )e voided. Furt,er+ore t,e we* -inn3il position o- t,e -r+ers
lso +*es t,e use o- dire3t +r*eting 3,nnel not -esi)le. 4,is is )e3use t,e -r+ers re not in position to
sto3* nd trnsport t,e produ3e until ti+e w,en it would )e needed. 6not,er i+portnt issue is t,t sin3e +u3,
in-or+tion 3on3erning t,e +r*ets re not vil)le (6+7% 2006!% t,e produ3er? -r+er +y not *now w,ere
nd ,ow to lo3te t,e 3onsu+ers nd t w,t pri3e to sell to t,e+.

C,nnel o- distri)ution develops lso s result o- e3ono+i3s o- spe3ili7tion nd lso )e3use o- gps t,t
seprte t,e produ3er nd t,e 3onsu+er. (uston &C7C! listed t,e gps involved s -ollowsE
i. 4i+e gpE 3onsu+ers pur3,se ite+s t +ore or less dis3rete intervls.
ii Sp3e ;pE 3onsu+er re dispersed geogrp,i3lly% w,eres produ3ers re lo3ted in -ew res -or
o)vious resons.
iii. Guntity ;pE e3ono+i3 resons +*e -r+ers produ3e lrge 8untity w,ile t,e +iddle +en )uy nd
sell in 8untities re8uired )y 3onsu+ers.
iv. Co++uni3tion nd in-or+tion ;pE 3onsu+ers +y not *now t,e sour3es o- t,e goods t,ey wnt nd
produ3ers +y not *now t,e potentil pur3,ser o- t,eir produ3e.

(oone nd Aurt7 (2004! pointed out t,t t,e -irst step in sele3ting 3,nnel is in deter+ining t,e o)9e3tives o-
t,e produ3er s well s t,e distri)ution needs o- t,e 3onsu+er. 633ording to t,e+% distri)ution intensity re-ers to
t,e nu+)er o- inter+edi3ies t,roug, w,i3, produ3er distri)utes ,is produ3t. D,ile t*ing t,ese de3isions%
produ3er +ust ensure t,t ,is produ3ts will ,ve de8ute +r*et 3overge. 6de8ute +r*et 3overge vries
wit, t,e gols o- t,e produ3ers% t,e type o- produ3t nd t,e 3onsu+er +r*et seg+ent in trget +r*et. (ooner
nd 4uge (2004! opined t,t t,ere re = 3tegories o- distri)ution intensity n+ely.
&. Intensive distri)utionE w,i3, see*s to provide sturtion 3overge o- t,e +r*et )y using ll vil)le
outlets. /sully n intensive distri)ution Strtegy suits produ3ts nd servi3es wit, wide ppel 3ross
)rod )rnds to 3,oose -ro+. In ot,er words i- one )rnd is not vil)le% 3usto+er will si+ply
3,oose not,er. 05+ple o- goods distri)uted t,roug, t,e strtegy in3lude so-t drin*s% 3igrette et3.
2. 053lusive distri)utionE is n e5tre+e -or+ o- sele3tive distri)ution in w,i3, produ3er grnts e53lusive
rig,ts to only w,oleslers or retiler to sell its produ3ts.

6ll t,e t,ree types o- distri)ution intensity +y not wor* wit, t,e gri3ulture produ3e 3,nnel in (orno stte
espe3illy t,e Cowpe +r*et. 4,ese strtegies 3n wor* in +r*ets w,ere prti3ipnts ,ve reltively e8ul
power or w,ere t,e produ3ers ,ve t,e power to di3tte to ot,er 3,nnel +e+)ers on ,ow t,eir produ3ts 3n )e
distri)uted. 4,e -r+er? produ3er in (orno stte see+ to l3* su3, power. 6not,er option -or t,e distri)ution o-
produ3e is t,e verti3l +r*eting syste+ ($.S!% 4,e $.S is setup in w,i3, t,e produ3er% w,olesler nd
retiler 3t s uni-ied syste+. 4,is is in 3ontrst to t,e 3onventionl +r*eting syste+ t,t 3o+prises o- n
independent produ3er% w,olesler nd retiler% e3, e5isting s seprte entity. 4,ese independent entities see*
to +5i+i7e t,eir own pro-it even i- su3, gols ,ve negtive i+p3ts on t,e syste+ s w,ole (Crvens 2000!.
6 $.S is plnned syste+ designed to i+prove distri)ution e--i3ien3y nd 3ost e--e3tiveness )y integrting
vrious -un3tions t,roug,out t,e distri)ution 3,nnel ((oone nd Aurt7 2006!. 4,e $.S 3n )e 3,ieved
t,roug, eit,er )3*wrd or -orwrd integrtion (6s, 'ore 20&0!. Aotler nd Aeller (2004! opined t,t in
-orwrd integrtion -ir+ tte+pts to 3ontrol downstre+ distri)ution. (3*wrd integrtion o33urs w,en
produ3er tte+pts to gin greter 3ontrol or own t,e inputs in t,e produ3tion pro3ess.

6 $.S o--ers severl )ene-its s ,ig,lig,ted )y Crvens (2000!% -irst% it i+prove 3,n3es o- 3ontrolling nd
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3oordinting t,e steps in t,e distri)ution or produ3tion pro3ess. It 3n lso led to e3ono+y o- s3le. $.S +y
lso let produ3er to e5pnd into new pro-it)le )usinesses. @owever $.S involves in3resed ris*. D,en
produ3er t*es 3ontrol o- n entire distri)ution 3,in ,e +y lso dis3over t,t ,e loses so+e -le5i)ility in
responding to +r*et 3,nges. #verti+e% t,ree 3tegories o- $.S ,ve evolved. #*e3,u*wu (200=! outlined
t,ese t,ree 3tegories sE
&. Corporte syste+s1 6 3orporte +r*eting syste+ 3o+)ines su33essive strtegies o- produ3tion nd
distri)ution under single owners,ip. In t,is syste+% single owner runs su33essive stges o- produ3tion
nd distri)ution
2. 6d+inistered syste+1 n d+inistered $.S 3oordintes su33essive stges o- produ3tion nd
distri)ution t,roug, t,e si7e nd power o- one o- t,e +e+)ers. In t,is syste+ do+innt +e+)er
e5er3ises power nd t,e ot,er 3,nnel +e+)ers o)ey.
=. Contr3tul syste+1 6 3ontr3tul. $.S 3onsist o- independent -ir+s t di--erent levels o- produ3tion
nd distri)ution% w,o re 9oined toget,er t,roug, 3ontr3ts to o)tin greter e3ono+ies o- s3le or sles
i+p3ts t,n e3, one 3ould 3,ieve lone. Insted o- 3o++on owners,ip o- inter+edite wit,in
$.S or t,e e5er3ise o- power wit,in n d+inistered syste+% 3ontrdul $.S 3oordintes
distri)ution t,roug, -or+l gree+ents +ong 3,nnels +e+)ers.
In pr3ti3e% t,ere re t,ree types o- gree+ents t,t set up t,e 3ontrdul syste+.

$i7
i. D,oleslers sponsored voluntry 3,nnel
2. Hetiler 3oopertives
=. Pur3,ser.

In w,olesler sponsored voluntrily 3,in% w,oleslers orgni7e voluntrily 3,in o- retilers to ,elp t,e+
3o+pete wit, lrge 3,in orgni7tions. 4,e w,olesler develops progr++e in w,i3, independent retilers
stndrdi7ed t,eir selling pr3ti3e nd 3,ieve )uying e3ono+ies to en)le t,e+ group to 3o+pete e--e3tively
wit, outlets o- rivl 3,ins. 4,e w,olesler enters into -or+l gree+ent wit, retilers to use 3o++on n+e%
+intin stndrdised -3ilities nd pur3,se t,e w,olesler produ3ts. #-ten t,e w,olesler develops lot o-
privte )rnds to )e sto3*ed )y +e+)ers o- t,e voluntry 3,in.

In retil 3oopertives% retilers t*e t,e inititive nd orgni7e new )usiness entity to 3rry on w,olesles nd
possi)ly produ3tion. 4,e retiler pur3,ses owners,ip s,res in t,e w,olesling opertion nd grees to )uy
+ini+u+ per3entge < o- t,e inventories -ro+ t,is opertion. 4,e +e+)ers usully dopt 3o++on store n+e
nd develop 3o++on privte )rnd. 6 3,nnel +e+)ers 3lled -rn3,isor +ig,t lin* severl su33essive stges in
t,e produ3tion nd distri)ution pro3ess.

6not,er lterntive -or 3,nnel e--i3ien3y is t,e +ulti-3,nnel distri)ution syste+. .ulti 3,nnel distri)ution
syste+ is distri)ution 3,nnel in w,i3, single -ir+ sets up 20 or +ore +r*eting 3,nnels to re3, one or
+ore 3usto+ers. 6lso 3lled t,e ,y)rid +r*eting 3,nnel% t,e +ulti 3,nnel syste+ ,s +ny dvntges.
So+e o- w,i3, indi3tes in3resed 3overge% lower 3,nnel 3ost% nd 3usto+i7ed selling. .ost inter+edites see
gining ot,er inter+ediry 3oopertion s ,ig, 3,llenge (Nols 2004!.4,is is )e3use +ost o- t,e ti+e% t,ese
inter+edites use +otivtions su3, s ,ig,er +ergers% spe3il dels% pre+iu+ sles 3onte5t% et3 to t,e produ3ers.
6 ti+es% t,ey pply sn3tions su3, s t,rets +inly to redu3e +r*ings.

4,e o)9e3tives o- t,e study re1
(i! e5+ine t,e so3io-e3ono+i3 3,r3teristi3s o- t,e 3,nnel +e+)ers in (orno Stte%
(ii! identi-y 3,nnel o- distri)ution o- 3owpe in (orno Stte%
(iii! e5+ine t,e +r*eting gents long t,e 3,nnel o- distri)ution o- 3owpe in (orno stte.

4,e Heser3, 8uestions -or t,e study re1
&. Do t,e so3io-e3ono+i3 3,r3teristi3s o- 3,nnel +e+)er in-luen3e ,is 3,oi3e o- trde in t,e 3owpe
trdeI
2. D,t re t,e di--eren3es )etween t,e 3onventionl +r*eting 3,nnels o- distri)utions nd t,e 3,nnels
o- distri)ution o- 3owpe in (orno StteI
=. 6re t,ere di--eren3es in t,e nu+)er o- +r*eting gents long t,e 3,nnels o- distri)ution o- 3owpe in
(orno stteI
4. 6re t,ere di--eren3es in t,e +r*eting 3,nnels o- 3owpe in t,e t,ree sentoril 7ones o- t,e stte

Heser3, @ypot,esis
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4,e -ollowing null ,ypot,esis ws postulted -or testing.
@
0&
-4,ere is no signi-i3nt di--eren3e in t,e nu+)er o- +r*eting gents long t,e 3,nnels o- distri)ution o-
3owpe in (orno stte.

Methodology
4,e +et,od dopted -or t,is study is t,e survey reser3, design. 4,e o)9e3tive o- t,e study nd t,e nture o- t,e
dt re8uired -or t,e study guided t,e 3,oi3e o- t,e +et,ods. 4,e 8uestionnire ws t,e instru+ent used -or t,is
study. 4,e popultion o- t,e study in3ludes ll -r+ers% w,oleslers nd retilers o- 3owpe in (orno stte. 6
totl o- &20 -r+ers% C0 w,oleslers nd &20 retilers were s+pled. 4,e di--eren3e in nu+)er o- t,e w,oleslers
-ro+ t,t o- t,e produ3er nd t,e retilers s+pled is )e3use in (orno stte gri3ulturl produ3e +r*et% t,e
-r+ers nd retilers out nu+)er o- t,e w,olesler (6+7 et l 2006!.

Purposive s+pling te3,ni8ue ws e+ployed in sele3ting o- t,e :o3l ;overn+ent 6res -or t,e study. #ne
:o3l ;overn+ent 6re ws purposely sele3ted -ro+ e3, o- t,e 7ones )sed on t,e produ3tion o- 3owpe. 4,e
:o3l ;overn+ent 6res sele3ted -or t,e study in3ludes Bere% .onguno nd (iu.6lso% 40 -r+ers% =0 w,olesler
nd 40 retilers were purposively sele3ted -ro+ e3, o- t,e :o3l ;overn+ent 6res. 4,e use o- purposive
s+pling 4e3,ni8ue ws to 3pture t,e :o3l ;overn+ent 6res t,t produ3e 3owpe on lrge s3le s well s
3,nnel +e+)ers t,t re relevnt to t,e study. (ot, t,e pri+ry nd t,e se3ondry sour3es o- dt were
e+ployed in t,is study. 4,e pri+ry dt -or were 3olle3ted wit, t,e use o- stru3tured 8uestionnires
d+inistered to -r+ers% w,oleslers nd retilers w,ile t,e se3ondry sour3es o- dt in3lude 9ournls% )oo*s
nd govern+ent reports. 6nlysis o- vrin3e (6N#$6! ws e+ployed to deter+ine w,et,er t,ere re
signi-i3nt di--eren3es in t,e nu+)er o- +r*eting gents long t,e 3,nnels o- distri)ution o- 3owpe in t,e =
:o3l ;overn+ent 6res o- (orno Stte.

Data Analysis and Results
Contingen3y t)le -or 6N#$6 o- +r*eting gents long distri)ution 3,nnels in t,e = :o3l ;overn+ent
6res o- (orno Stte.
Hepli3tions
4ret+ent Bere .onguno (iu
C,nnel & J X&& X2& X=&
C,nnel 2 X&2 X22 X=2
C,nnel = X&= X2= X==
C,nnel 4 X&4 X24 X=4
C,nnel " X&" X2" X="
KX nu+)er o- +r*eting gents

Data presentation
So3io e3ono+i3 3,r3teristi3s
4,e study soug,t to *now t,e so3io e3ono+i3 3,r3teristi3s o- t,e 3,nnel +e+)ers in ter+s o- se5 ge%
edu3tionl 8uli-i3tion nd sour3e o- initil 3pitl outly. 4,e -etures re e5+ined nd presented in t,e t)le
)elow

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< o- respondents
So3io-e3ono+i3
3,r3teristi3s produ3er w,olesler Hetiler 4otl
$ri)les (nL&20! ( nLC0! (nL&20! (nL==0!
6ge
20-2C0.6 &2.0 &C.= =&.>
=0-=C&&.4 2.= 7.& 20.7
40-4C&2.6 C.7 7.& 2C.=
M"0 &=.= 2.= 2.6 &>.2
4otl&00 &00 &00 &00
Se5
.le 66.4 7C." >4.2 76.=
Fe+le ==.6 20." &".> 2=.7
4otl &00 &00 &00 &00
0du3tionl 8uli-i3tion
No -or+l s3,ool &4 &&.C &>.0 4=.C
Pri+ry ".4 7.6 &0.4 2=.4
Se3ondry =.2 =.2 2%7 C.&
Diplo+ 6.= 0.6 &.C >.>
/niversity grdute >.> 2.> =.2 &4.>
4otl &00 &00 &00 &00
Sour3e o- initil
Cpitl outly
Finn3il institutions >.2 ".7 C.4 2=.=
F+ily nd -riends ".> 4.& "%C &".6
Personl svings 2=.= &6.4 2& 60.7

4,e result reveled t,t 76.=< o- t,e 3,nnel +e+)ers were +le w,ile 2=.7< were -e+le. 4,e ges o- t,e
3,nnel +e+)ers were soug,t. 4,is is to en)le t,e study est)lis, w,i3, ge )r3*et e+)r* predo+intely in
t,e trde.

4,e study -urt,er reveled t,t =&.><% 20.7< nd &>.2< o- t,e respondents re o- t,e ges &0-2C% =0-=C% 40-4C
yers respe3tively. 4,e edu3tionl level o- t,e 3,nnel +e+)ers ws lso soug,t. 4,is is to *now t,e liter3y
level +ong t,e 3,nnel +e+)ers. 6nlysis o- t,e result reveled t,t 2.=<%4<% C.&< >.>< o- t,e respondents
,d ttin up to pri+ry% se3ondry diplo+ nd university edu3tion respe3tively w,ile 4=.C< ,d no -or+l
edu3tion. 4,e sour3e o- initil 3pitl -or 3owpe )usiness ws soug,t to *now w,i3, o- t,e sour3es 3ontri)ute
+ost to t,e )usiness. 4,e sour3e 3onsidered in t,is study in3ludes personl svings% 3ontri)ution -ro+ -riends s
well s -inn3il institutions. Finn3il institution% -+ily nd -riends nd personl svings 33ounted -or 2.=<%
&".6< nd 60< respe3tively o- t,e sour3e o- initil 3pitl outly o- t,e +r*eters.

4,e study soug,t to *now i- t,e 3,nnel +e+)ers 3on3erned is produ3er or trder in t,e )usiness. 4,e sttus
o- t,e 3,nnel +e+)er is given in t,e t)le &00< o- -r+ers produ3e t,e 3rop t,t t,ey sle nd lso sle -ro+
w,t t,ey ,ve produ3ed.. 6+ong t,e w,oleslers 7.2< undert*e in -r+ing 3tivities w,ileC2.>< do not
engge in -r+ing )ut only trding.7< o- t,e rtilers do -r+ )ut )out C=< do not -r+ t,e produ3e t,t t,ey
sle.
Produ3er D,olesler Hetiler 4otl
Produ3er &00 7.2 .7.0 &&4.2K
4rder &00 C2.> C=. 2>4.>K
4otl 200 K &00 &00
4,e -igures re +ore t,n &00< )e3use t,ey re not +utully e53lusive.

Ctegory o- 3,nnel +e+)ers in t,is study in3ludes produ3ers w,oleslers nd retilers. 4,e study
soug,t to -ind out w,i3, 3tegory 3,nnel +e+)er )elongs to. 6lt,oug, 3,nnel +e+)er 3n undert*e in
+ore t,n one trde% t,e study 3tegori7ed t,e+ 33ording to w,i3, 3tegory o- trde t,ey prti3ipte +ost
in.4,e distri)ution is given )elow

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60
Fre8uen3y < 3u+<
Produ3er &&C =7.7 =7.7
D,olesler >= 26.= 6=.C
Hetiler &&4 =6.& &00
4otl =&6 &00

4,e -re8uen3y on t,e t)le revels t,t =7.7< were produ3ers% w,olesler were 26.=< o- t,e popultion% w,ile
=6.&< were retiler in 3owpe )usiness. 4,e -r+ers nd retilers outnu+)er t,e w,olesler.

Consu+er 3,nnel
(si3lly t,ere re 2 types o- +r*eting 3,nnels o- distri)ution. 4,ese re t,e 3onsu+er goods 3,nnel nd t,e
industril 3,nnel 3owpe in (orno stte 3n )e 3lssi-ied s 3onsu+er s well s n industril good. 4,us t,e
study too* )ot, 3,nnels into 3onsidertion.

C,nnel o- distri)ution < o- respondent
Produ3er N 3onsu+er 7."
Produ3er Nretiler 3onsu+er C."
Produ3er w,olesler N retiler N 3onsu+er =0.>
Produ3er N w,olesler-9o))er-retiler-3onsu+er 7.>
Produ3er-gent-w,olesler-gent-retiler-3onsu+er =>.=
Produ3er-industries 6.6

6nlysis o- t,e t)le reveled t,t 6.6< o- t,e respondents do not + use t,e 3onsu+er 3,nnel o- distri)ution
)ut t,e industril 3,nnel. In t,e -irst 3,nnel w,i3, is lso ter+ed t,e 7ero 3,nnel% t,e produ3er sells dire3tly to
t,e 3onsu+er. 4,is 3,nnel is used )y 7."< o- t,e +r*eters. 4,e se3ond 3,nnel w,i3, 3o+posed o- produ3er
retiler nd t,e 3onsu+er ws used )y C"< o- t,e +r*eters to sle t,eir goods. 4,e t,ird 3,nnel w,i3,
3o+posed o- produ3er w,olesler% retiler nd t,e 3onsu+er ws ptroni7ed )y =0.>< o- t,e +r*eter w,ere s
t,e -ourt, 3,nnel ,s =>.=< ptronge o- t,e respondents. 6ll t,e ot,er 3,nnel e53ept t,e -i-t, 3,nnel re
3onventionl +r*eting 3,nnels.

Industril 3,nnel <o- respondents
Produ3er-industril-3onsu+er ".&<
Produ3er-industril-3onsu+er-industril-distri)utor C.4<
Produ3er-produ3er representtive-industril distri)utor &=.C<
Sle t,roug, 3onsu+er 3,nnel 7&."<
&00<

6)out 7&."< o- t,e 3,nnel +e+)ers do not ptroni7e t,e industril goods 3,nnels. 6)out C< sold to
industries t,roug, industril distri)utors w,ile &=.C< sold to industries vi -r+er representtives.

4)les 4.24 nd 4.2" s,ow t,e test o- signi-i3nt di--eren3es in t,e 3onsu+er.
6nd industril +r*eting 3,nnels respe3tively

Consu+er C,nnel 6N#$6s 4)le
4ret+ent Hepli3tions
Bere .onguno (iu 4otl
C,nnel & 0 &0 4 2&
C,nnel 2 44 = 4 &&
C,nnel = > &2 &0 =0
C,nnel 4 => =4 => &&0
C,nnel " 7 6 &0 2=
C,nnel 6 =4 40 44 &2&

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Industril C,nnel 6N#$6 4)le
4ret+ent Bere .onguno (iu totl
3,nnel & 6= 64 &4
3,nnel 2 &4 &4 &&
3,nnel = &2 &= &=
3,nnel 4 &2 &4 &>

4est -or signi-i3nt di--eren3e in t,e nu+)er o- 3,nnel +e+)ers long t,e 3onsu+er 3,nnels o- distri)ution o-
3owpe in (orno stte

Fre8uen3y Su+ o- s8ure d.- +en s8ure - sig
tret+ent =.7"" 2 &.>77 .>4" .4=0
error 6C".04= =&= 2.22&
totl 6C>.7C7 =&"

-re8uen3y su+ o- s8ure d.- +en s8ure - sig

tret+ent .47& 2 .2=6 .&>7 .>2C
error =C=.462 =&= &.2"7
totl =C=.C=4 =&"

4,e 3onsu+er goods 3,nnels ,d vlue o- 0.4=0% w,ile t,t o- industril goods ,s 0.>2C. 4,us )sed on t,e
result o)tined t,ere re no signi-i3nt di--eren3es in t,e distri)ution 3,nnel o- 3owpe in t,e = :;6 o- (orno
stte. 4,is 3,nnel o- distri)ution used to +ove 3owpe -ro+ its produ3er to t,e 3onsu+er in ll t,e = lo3l
govern+ent t,t were studied.

Discussion of Result
In (orno stte wo+en re trditionlly ,o+e *eepers% w,ile +en re t,e -+ily )red winners. 6lt,oug, +ost
wo+en undert*e in -r+ing 3tivities t,ey do so on s+ller s3le nd +ost o-ten produ3e veget)les w,i3,
re used -or do+esti3 use. 4,is is so )e3use +ost o- t,e ,ouse,olds -inn3il responsi)ilities re s,ouldered )y
t,e +en.

.ost o- t,e retilers -ell in t,e ge rnge o- 20-2C. 6t t,is ge t,oug, young nd energeti3% 3,nnel +e+)ers do
not ,ve +u3, responsi)ility. 4,ey +y ,ve 9ust one wi-e nd one or two 3,ildren% not,er reson is t,t t t,is
young ge% t,eir prents )er t,e responsi)ility o- *eeping t,eir ,o+es. 4,e ssu+ption is t,t t,e prents re
still live nd strong enoug, to -r+ nd lso t*e 3re o- t,eir -+ilies. .ost o- t,e -r+ers? produ3ers re
)etween t,e ges o- =0-=C nd 40-4C. 6t t,ese ges people now tend to ,ve +ore responsi)ility nd ,ve to
seriously go into -r+ing to 3ter -or t,e growing de+nd o- t,e -+ily. 4,e liter3y level in t,e stte is still
very low. Nevert,eless university grdutes re now venturing into -r+ing +ore t,n ever )e-ore.

.9ority o- t,e 3,nnel +e+)erOs sour3e o- initil 3pitl is t,roug, personl svings .4,ese personl svings
were o)tined -ro+ 33u+ulted +r*et +rgin -ro+ t,e sle o- t,eir produ3e over ti+e. Finn3il institutions
re not -ort, 3o+ing in giving out lons. 4,e produ3ers re +ostly su)sistent -r+ers nd do not ,ve t,e
3ollterls or se3urities t,t -inn3il institutions de+nd upon giving out 3redit -3ilities. So+e -r+ers +y not
even *now t,e pro3edures nd -or+lities involved in se3uring lons.

6lso% )e3use o- t,e su)sistent nture o- -r+ing in t,e stte% +ost 3,nnel +e+)ers ptroni7e t,e 3onsu+er
goods 3,nnels. #nly -ew +*e use o- t,e industril 3,nnel. 4,roug, t,e -irst 3,nnel% w,i3, is lso 3lled t,e
7ero 3,nnel% t,e produ3er sles dire3tly to t,e 3onsu+er. 4,is 3,nnel is used )y )out 7."< o- t,e +r*eters.
4,is is in line wit, Folorunso nd D7is (2007!. D,o opined t,t so+e 3onsu+ers )uy dire3tly -ro+ t,e -r+s
-or t,eir 3onsu+ption .4,e se3ond 3,nnel ws lso used )y -ew +r*eters. 4,e t,ird 3,nnel ws used )y )out
=0.>< o- t,e +r*eters. D,eres t,e -i-t, 3,nnel ws used )y =>.=<. 4,e -i-t, 3,nnel w,i3, ,s t,e gretest
ptronge is not in line wit, t,e 3onsu+er goods +r*eting 3,nnels s opined )y Aotler (2000! 3rvens (2000!
nd C7in*ot et l (&C>>!. In t,is 3,nnel% t,e presen3e o- gents )etween t,e w,oleslers nd t,e produ3ers s
well s )etween t,e retiler nd w,olesler +*es 3,nnel distin3t -ro+ t,e 3onventionl +r*eting 3,nnels.
4,e gents do not t*e title or owners,ip o- t,e produ3e )ut wor* on 3o++ission. In t,e -irst instn3e% t,e gent
)etween t,e w,olesler nd t,e produ3er 3olle3ts per3entge o- w,t ,e is )le to sle -ro+ t,e w,olesler. In
t,e se3ond instn3e ,owever% t,e retilers pys t,e gents 3o++ission o- w,t ,e is )le to )uy% t,e 3onsu+er
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62
t,t dire3tly )uy -ro+ t,e produ3er does t,t t lesser pri3e t,n w,en inter+ediries re involved. 4,e +ore
+r*eting gents t,t re involved in del% t,e +ore t,e 3onsu+er eventully py -or t,e produ3e.

.ost o- t,e +r*eters do not +*e use o- t,e industril goods 3,nnel% t,is is )e3use in (orno stte +ost o- t,e
-r+ers produ3e -or su)sisten3e. 4,e -r+ers produ3e little +ore t,n re8uired -or t,eir personl 3onsu+ption.
4,us +9ority do not sle t,roug, t,e industril 3,nnel. 4,is is in3ongruen3e wit, t,e -indings o- Poly3rp nd
(il (2007!% w,o opined t,t t,e -r+ers in (orno stte re poor% inde)ted nd do not produ3e +ore t,n 3n )e
sold t,roug, t,e 3onsu+er goods 3,nnel. 4,us it 3n )e dedu3ed t,t )e3use o- t,e su)sisten3e nture o-
+r*eting o- gri3ulture produ3e. 4,e industril 3,nnels re not +ostly ptroni7ed.

6 good nu+)er o- respondents +*e use o- t,e 3onventionl +r*eting 3,nnels -or t,e distri)ution o- t,eir
produ3e. (ut t,e +9ority +*es use o- not,er 3,nnel di--erent -ro+ t,e 3onventionl +r*eting 3,nnel. 4,e
new 3,nnel 3onsists o- +ore +e+)ers t,n t,e 3onventionl +r*eting 3,nnels. 4,is ,d +de t,e gp
)etween -r+ gte pri3e nd t,t w,i3, t,e eventully -r+er pys wider. (e3use o- t,e su)sistent nture o-
-r+ing in t,e stte% t,e industril 3,nnel re not used )y +ny. 4,e distri)ution 3,nnel -or 3owpe is not s
strig,t -orwrd s t,e 3onventionl +r*eting 3,nnels. 6+ong t,e 3,nnel +e+)ers re gent w,o do not t*e
title o- t,e produ3e )ut p,ysi3l -un3tions in order to o)tin e3ono+i3 )ene-it nd )si3lly t,e 3,nnel use in
t,e = :;6S si+ilr.

Conclusion
4o su+ up% I would li*e to reiterte t,t C,nnels o- 3owpe in (orno stte re not s strig,t -orwrd s t,e
3onventionl +r*eting 3,nnels. 6+ong t,e 3,nnel re gents w,o do not t*e title o- t,e produ3e )ut per-or+
p,ysi3l -un3tions in order to o)tin e3ono+i3 )ene-its.

Recommendations
- C,nnel +e+)ers s,ould )e edu3ted )out )etter +r*eting 3,nnel to use in distri)ution t,eir
produ3er. 4,e verti3l +r*eting syste+ i- dopted )y t,e 3,nnel +e+)ers will +*e t,e 3,nnels
+ore e--e3tive.
- ;overn+ent s,ould +*e 3redit -3ulties 33essi)le or wit,in t,e re3, o- -r+ers to en)le t,e+ rep
t,e )ene-its o- t,e verti3l +r*eting syste+.
- Fr+ers s,ould lso )e enlig,tened or en3ourged to -or+ Coopertive so3ieties to )ene-it +ore
-ro+ ;overn+ent
- ;overn+ent s,ould loo* into possi)le res o- )ringing )3* t,e +r*eting )ords% w,i3, would +*e
t,e 3,nnels o- distri)ution s,orter nd lso *eep t,e gp )etween t,e -r+ gte pri3e nd t,t w,i3,
t,e 3onsu+ers py +ini+l.

References
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t5
edition prenti3e ,il Indi.
.ngison%P. (2000! www.s3idedueet.3o+.Q #g+O7rioRRG? stru3ture pro3esses nd out3o+e P03on+i3s letters
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e3ono+i3 3tivities in (orno stte. 6pni?:oud )oo* pu)lis,ers .I)dn.

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