CHAPTER ONE

INTRODUCTION

1.1      Background of the study

Agriculture has been identified as the primary and biggest source of income in rural communities and provides employment to approximately 70 percent of its population (Pal, 2005). Hill (2008) opined that a significant proportion of agricultural task involve moving equipment and materials from one place to another which involve a wide variety of types and sizes of loads to be moved over different distances and types of terrain. Transport is indispensable to economic development especially in a developing country like Nigeria. This is because transport is essential to execution of daily economic and social activities in any given area. Girvan (2007) stated that transportation is a necessary precursor to the development of agricultural productivity and has a unique role and relationship with agriculture development because of the characteristics of agricultural production, commodities and markets. Crosssley et al. (2009) examined that transport operations are a basic component of agricultural input and produce supply chains and that transport can be the decisive factor for the success of a farm or business activity, or else the one constraint that makes costs prohibitive or renders a project economically non-viable. Njenga and Mbara (2005) claimed that transportation has the ability to intensify inequalities and deepen poverty if its negative externalities are not appropriately managed and thus transport by itself cannot have a decisive impact on poverty. Crossley et al (2009) recognized transport has a major component of the operation cost in the food chain and it’s becoming a barrier for small-scale producers and for the development of efficient, lucrative agribusinesses. World Bank (1999) indicated that the availability of transport provides the poor with better physical access to markets and other social amenities such as education and health services. World Bank (ref) further stated that there is ample evidence that the availability of transport enhances agricultural productivity by addressing the spatial dislocation and any unacceptable distributional consequences associated with lack of adequate means of transport particularly for the rural poor. Jacoby (2000) reported that road has particular important form of rural infrastructure providing cheap access to markets for agricultural output, thus improving access to rural transportation can stimulate economic development (Friedman, 2004) thereby increasing production capabilities of the rural farmers. Howe (2001) affirms that a better understanding of rural transport demands and constraints requires a more thorough analysis of the needs of individual households. Njenga and Mbara (2005) identified transport as a key ingredient in the development of rural areas which provides people with access to various goods and services. They further stressed that human development hinges on efficient transport which enables access to markets and service, information, opportunities and, networks

Agricultural have been a source of help to economy development especially the trend of agricultural product. In time of old, the early men live by agricultural produce through this, food and shelter, food from animals and plant e.g. root and harps are gotten from agriculture to live a healthy life.

       Nevertheless, this product can be carried out from one place to another by transportation before the arrival of colonial masters (white men) we were dealing with human porter age and animal transportation.

     Human porter age is the earliest means of transportation system whereby human being transport goods especially on their heads while animal porter age transportation involved the use of animal used, in carrying goods and services from one place to another e.g. donkeys horses e.g. these are commonly found in Northern part of Nigeria,

1.2 STATEMENT OF PROBLEM

It is no news that the cost of transportation has an adverse effect on Agricultural produce as most of the producers of these agricultural products are rural duellers, and agricultural business is best achieved in the rural area as there is verse land for cultivation and production. It is on this note that the researcher intends to examine and finding solution to the following, the causes of transportation cost the effect to agriculture the effect for austerity measure on the citizens Nigeria.

1.3 OBJECTIVES OF STUDY

The main objective of this study is to ascertain transportation cost variation and its effect on agricultural products, but for the successful completion of the study the following objectives is put forward by the researcher:

(1)  To ascertain the effect of transportation cost on agricultural product.

(2)  To ascertain the relationship between transportation cost and agricultural product.

(3)  To ascertain the impact of transportation cost on the price of agricultural product

(4)  To ascertain the role of transport cost variation on the production of agricultural produce.

1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following hypotheses were formulated

H0: Transportation cost has no significant effect on agricultural product in Edo state

H1:   Transportation cost has significant effect on agricultural product in Edo state.

H0: There is no significant relationship between transportation cost and the price of agricultural product in Edo state.

H2: There is a significant relationship between transportation cost and the price of agricultural product in Edo state.

1.5 SIGNIFICANT OF STUDY

    The purpose of this study is to carry out awareness to the populace on how the transportation cost variation truly affected, firms, individuals and industries. It accepted that awareness is the study will create planning of these set of people that are affected, moreover, when the problem of road transport in Edo state are noted or known, with the help of appropriate recommendation, this will now bring about improves transportation system in Edo state

1.6 SCOPE OF THE STUDY

The scope of study consists of past and present situation of the relationship between price of agricultural products and transportation cost. The study intends to cover the following due to limited time and financial constraints. The factor effect production of goods and services, which can be transferred from it was made and where it was needed in other words, the researcher is sure to know and bring out the prospect of transportation in various economy.  In conclusion, some important answers to problems of transportation and its effect on agricultural will be listed

1.7 DEFINITION OF TERMS

Development: to grow larger more mature or fully organized e.g.

Agricultural products: food items brought from the farm cultivation of the soil

Populace: the general public

Escalation: carrying of goods and products from one place to another

Pre-requisite: thing needed as a condition

Socio-economy: this relates to electricity, water, telephone, telex, e.g. for maximum use/utility.

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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