CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Agriculture is and still remains an important sector of the Nig Agriculture is and still remains an important sector of the Nigerian economy inspite of the importance of crude oil which has been unduely emphasized on agriculture. Its practice has remained within a subsistence level at a time in the past.

Reports from the food and agricultural organization shows that by the year 2010. Nigeria will be able to meet only 37% of the food need of its projected 150 million people.

No doubt agriculture provides the greatest avenue for employment, income and food for the Nigeria populace its intrinsic position as a source of raw-materials for key industries and a major source of foreign exchange earning has further- added to its pre-eminence among all known occupation. However the performance of this sector as regards agricultural production varied widely over the past two decades the enabling environment prevalent at different point in time, have greatly influenced it.

Apparently agricultural purchasing to a larger extent may be said to begin when farmers plan their output or the expected market prices. To the layman agricultural purchasing could be taken as the bridge or connecting link between specialized agricultural producers and final consumer.

But their in as a much as this view is myopic a broader perspective of agricultural purchasing is that it is the performance of all business activities involved in the flow of agricultural production to the point of consumption for further to this the dynamic of agricultural marketers on the food and raw-material demands in their territory and which apparently helps farmers in their production planning. In other products being efficiently and effectively delivered to the consumers or usrs.

Normally, consumers and interested in securing the highest food value at the lowest possible price while at the same time. Farmers want the highest possible returns from the sale of their produces, along the line middle-men seek to earn the greatest possible profit pricing policies and behaviours are therefore important indicators to both the middlemen and the society in general. To explain further to the middlemen, price changes determines gross margin and profitability; and for the society, price directly effect aggregate price levels of the economy and hence consumer welfare.

Agricultural products uniquely depend on a adequate and flexible transportation system that is why the ministry of agricultural focus on the geographic movement to acquire their market value and also because of the extent to which climate or weather determines where or when and in what quantity transportation services will be needed.This study tends to look into the problems and prospects of agricultural purchasing within a state and within states creates the need for exchange which in the other hand calls for the might or important middlemen.

1.2 STATEMENT OF THE PROBLEM

Agricultural production in Imo state has drastically been reduced and this has occasioned scarcity of food in the homes and for export.

The situation is different from what it was before when there were abundant food for populations and for sale. The present predicament of scarcity in the agriculture sector has let both the consumers and the industrial users to look for explanations to this.

A lot of reasons could be adduced for the short-fall that could be traceable to this include the city disturbances in the country increasing rate of population growth. Other factors include draught, unfavourable, external environment and inadequate funding for agricultural and in development.

Some of the activities that suppose to back-up purchasing are still lacked or not full utilization. Most time agriculture in Imo state are confronted with limited production by design due to lack of facilities of processing and storage when this is the case, agricultural producers tend to remain only on the subsistence level with little to offer to the market. Despite the enormous resources injected by the government into the sector after the civil war, the impact of the production did not matched the volume of resources expended on the sector as the agricultural product production stagnated at less than one prevent annual population growth rate a time population growth rate was between 2.3%. all the producers because of their level of production and lack of storage facilities being to a market, a small quantity for immediate cash and in most cases all the surpluses are brought to the market same time after production.In all agricultural sector has affected export which would have boostered revenue of the government thereby stalling developments.The oil 600m further reduced participation in agriculture as most people disengaged into white collar jobs.

1.3 OBJECTIVES OF THE STUDY

The general objective of the study is to evaluate the problems and prospects of agricultural purchasing as the study of ministry of agriculture Imo state the study is intended to the problem of workers in the ministry of agriculture.And evaluate instruments in agricultural production. And also the storage facilities, preservation of food and crops and quality maintenance open to farmers which in turn help in the purchasing of perishable products.

Making recommendations as how to increase the quality and quantity of the agricultural product thereby reducing the associated. And to evaluate the storage facilities and also the land tenure system which is the problem that we are facing now. To evaluate instruments in agricultural there lack instruments and even the old ones there lack maintenance.At this are the problems there are facing in the ministry of agriculture Imo state.

1.4 SIGNIFICANCE OF THE STUDY

Agricultural planning and development have began to receive some attention in many developing countries.The importance placed on agriculture has to do with the experience of those countries which is in constant short supply of food.

Many agricultural programmes were enunciate by the different regimes ranging from green revolution to operation feed the nation down to Imo state agrarian revolution or River State back to land schemes.All these efforts are aimed substantially to increasing the agricultural product production. 

In between the producers and consumers are the purchasing activities and the satisfaction of the consumers depends to a large extent on how these activities are carried out.However, lack of adequate purchasing may cause shortage in some instance thereby increasing the price of the product in particular areas while others experience near surplus with attendant low prices.

The study is intended to provide me necessary information to the consumers producers and to the government on how to improve the agricultural produce and such improvement will check on the continued scarcity of the product and thereby enhancing exportation which will earn foreign exchange for the country.

1.5 HYPOTHESIS FORMULATION INTO FOUR

H1 Bad road in Owerri south Government Area impacts negatively in the agriculture productivity.H2: The problem of poor processing and storage facilities impacts negativity in the profitability of agricultural products.H3: Use of Crude Oil as the major source of revenue by government had caused decline in agricultural sector.H4: Scarcity of Agricultural products affected the demand for agricultural product in Owerri south Government Area.

1.6 SCOPE OF THE STUDY

For the purpose of effective research, some of the towns in Owerri south Government Area were selected.NekedeOwerri SouthOwerri NorthIdeatoOsuReasons for the selection of towns is to enable the researcher have an indepth study of Owerri south Government and draw a wide conclusion of how the present purchasing systems in Owerri south Government affects the purchasing of palm produce as an agricultural products.