PROFITABILITY AND PRICING EFFICIENCY IN THE MARKETING OF GARRI IN EGBA DIVISION,OGUN STATE.

The study examined the profitability and pricing efficiency in the marketing of garri in egba division of Ogun State. The study made useof primary data which were soureed with the aid of well-structured questionnaies. Multistage random sampling technique was used to select one hundred twenty (120) garri marketers in the study area. Descriptivestatistics and budgetary analysis were used to analyse the data. Descriptive statistics revealed that garri marketing in the study area is dominated by female (84.2%) with mean age of 55.5 years.Descriptive analysis also confirmed that price instability (82.1%), high cost of transportation (81.4%) and financing (72.4%) are some of the militating problems facing the garri marketers in the study area. The budgetary analysis showed that garri marketing is profitable in the study area with gross margin of N30,214.58 and net income of N17,906.33. The result revealed that the rate of return on investmnent is 4.48 and profitability index is estimated to be 0.14, and this confirmed that garri marketing is profitable in the study area. The pricing efficiency of 1.1 revealed that garri marketing price is over efficient in the study area. The study concluded that garri marketing is profitable in the study area and women are the major players in the gami marketing enterprise.The study therefore recommends deliberate andintentional action from the government about policy reforms which will facilitate price stability especially for agricultural products such as garri.