Price Volatility And Market Integration: The Case Of Selected Cereal Merchandizing In South-South, Nigeria

Abstract

Price volatility is a major tool that drives market integration. The broad objective of the study is to determine the effect of price volatility on market integration of selected cereal in South-South Nigeria. The population of the study was made up of cereal crops producers and consumers in Bayelsa, Delta and Rivers states. Krejcie & Morgan statistical table was used to determine the sample size of 384 respondents and they were selected using multi-stage sampling method.  The statistical tools used include; simple percentage, mean, frequency and multiple regression analysis. The findings of the study showed that all variables examined such as marketing infrastructure, volatile policy and domestic production were positive and significant factors that affect market integration of cereal crops production and consumption in south-south, Nigeria. The findings further revealed that when proper marketing infrastructure, improved policies, domestic production and market-driven pricing are well blended, they will on the aggregate foster positive market integration in the production of cereal crops in south-south, Nigeria. Therefore, the study concluded that, government agency regulators and key industry players need to engage optimal   adjustment to impart positively the fluctuating indicators of production process, policies, etc. to effect positive market integration in cereal crop production.