Original Research

Structure and conduct of medicinal plants supply chain in Kwara State

Matthew O. Adewumi, Grace O. Akinsola, Olaide O. Olawoye
Journal of Medicinal Plants for Economic Development | Vol 4, No 1 | a93 | DOI: https://doi.org/10.4102/jomped.v4i1.93 | © 2020 Matthew O. Adewumi, Grace O. Akinsola, Olaide O. Olawoye | This work is licensed under CC Attribution 4.0
Submitted: 20 May 2020 | Published: 22 October 2020

About the author(s)

Matthew O. Adewumi, Department of Agricultural Economics and Farm Management, Faculty of Agriculture, University of Ilorin, Ilorin, Nigeria
Grace O. Akinsola, Department of Agricultural Economics and Farm Management, Faculty of Agriculture, University of Ilorin, Ilorin, Nigeria
Olaide O. Olawoye, Department of Agricultural Economics and Farm Management, Faculty of Agriculture, University of Ilorin, Ilorin, Nigeria

Abstract

Background: There has been paucity of data on medicinal plants supply chain in Kwara State. The development of medicinal plants supply chain is a vital tool to ensure affordability and accessibility of medicinal plants to the herbal medicine producers.

Aim: This study examined the supply chain, structure, conduct and performance of medicinal plants in Kwara State.

Setting: Respondents data were drawn from the various sections of the herbal plants supply chain in Kwara State.

Methods: Descriptive statistics, concentration ratio, coefficient of variation, cost and returns analysis and Likert type scale were used for data analysis. Data collection was through interview schedule and structured questionnaire. Purposive and snowball sampling techniques were used to draw a sample of 128 respondents.

Results: The results revealed that the supply chain upstream was informal, and the chain is dominated by middle aged people. Four stages that existed on the supply chain included gatherers, farmers, herbal medicine producers and the final consumers. The highest supply source, which cut across all the actors in supply chain, was through gathering. This was followed by farmers. The least supply source was through importation. Farmers, gatherers and medicinal plant traders have non-concentrated market (0.07, 0.02 and 0.09), while Herbal Medicine (HM) producers had a moderately concentrated market (0.23). Binding prices, price regulation and barrier to entry and exit were inconspicuous. In general, the chain was adjudged to operate a fairly free market system. The enterprises were profitable with an average gross margin ratio of 0.76 for gatherers, 0.58 for farmers, 0.48 for traders and 0.46 for HM producers.

Conclusion: The study examined the structure and conduct of the medicinal plants chain in the study area, and the chain was adjudged to operate a fairly free market system.


Keywords

medicinal plants; market structure; supply chain; herbal medicine; Kwara State; Nigeria

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