CHAPTER ONE

BACKGROUND OF THE STUDY

1.1   INTRODUCTION

The alleged increase in the consumption of yam flour “KINA-KUNNU” as it is called in Baruten Local Government Area of Kwara State and lack of good roads in the area has brought the importance of intermediaries for effective sales of agricultural product in Gwanara Market of Baruten Local Government Area.

Therefore, this project is aimed at showing the vital roles played by the intermediaries of this Agricultural product, yam flour. Basically, intermediaries who are known as the BARANDA (MALE) TENKU-SUNO (FEMALE) intermediary in Baruten. They are the link between the producer and the buyers. These intermediaries take the possession of goods assigned to them by the owner who is known as the principal on commission bases. The agent can be classified into the following types.

1. The Declarer: This type of agent guarantees his principal that if the person he is recommending fails to pay the principal, this type of agent is given high rate of commission.
2. The Factor: Deals with a particular goods in his own name, without disclosing it to the consumers and sells at his own price.
3. The Broker: This is an agent who simply brings the third party into a contractual relationship with his principal. he has no possession of the physical goods and so handles over the customer to his principal after he has made a useful contact on behalf of his principal.

The commission house (sometimes called the commission merchant) they sell on behalf of their principal and receive a margin called the commission. Which is based on the volume of sales they are able to generate, they also have they physical power over the goods they sell. This type of agents also enjoy greater powers to price method and terms of sales.

The “Baranda and Tenku-suno” are typical examples of commission merchant of yam flour in Gwanara Market. The role of this intermediary is beneficial to both producer and consumer (buyers) they help the producer in creating awareness and making effective sales of their product.

And to the buyers, they help in reducing the cost of transportation, because most of the farmers or producers live in a remote area where they use canoes, motorcycles, and human carriage are the only means of transporting this product.

Due to lack of good transportation in the area, this goods are taken twice in a day or everyday depending on the distance (Kilometers) to the intermediaries (Baranda and Tenku-suno) before the market day.

The role of the intermediaries is also to send a means of getting this product from the various farmers to a particular place which is nearer and motorable for the buyers who come with big lorries to pack the products either on market days or ordinary days to their various towns where the products are needed. Thus, the effectiveness of intermediaries and its positive effect on the sales of Agricultural product has made the involvement of intermediaries indispensable.

1.2   STATEMENT OF THE PROBLEM

The intermediaries as a link between the producers and buyers have some activities that they carry out for either of the party. These activities qualify them to have their commission as consideration for the job done. In this local market, the commission charge and collect normally cause dissatisfaction to the consumers or customer. The customers and consume believe that the money paid to them as their commission is a cheat because it increases the price of product and also believe that the price is already inflated by these local intermediaries.

The intermediaries on their part always claimed that what they are getting as commission from buyer is right because they are the one who facilitate sales of the product.

Certain questions which attract much attention among others are:

1. Does it mean that without these intermediaries buying in that market cannot be possible?
2. Do these intermediaries have job doing is buying transaction.
3. Who assign them the job and who pay for the job.

So, the word satisfaction can be obtained when the buyers feel that what they pay for the product march the utility derived from the products.

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