1.0 Introduction
1.1 Background of Study
Historically, as societies evolved from subsistence economies to market-driven systems, the need to move goods efficiently became increasingly vital. In ancient civilizations, trade routes such as the Silk Road and trans-Saharan caravan trails were established to facilitate the movement of goods across vast regions. Even then, transportation difficulties such as long distances, poor terrain, and insecurity significantly affected the availability and cost of goods in different markets (Rodrigue, 2020). With the industrial revolution in the 18th and 19th centuries, advancements in transportation especially the development of railways and steamships brought significant changes to the global supply chain. However, despite global progress, developing nations like Nigeria have continued to face challenges in transportation that directly impact the cost and distribution of consumable commodities (Oyesiku, 2002).
In Nigeria, as in many developing countries, the state of transportation infrastructure is often poor, characterized by bad roads, limited railway networks, inadequate storage facilities, and fluctuating fuel prices. For instance, in rural communities where agricultural produce is common, farmers face difficulties transporting their goods to urban centers due to poor road conditions and lack of reliable vehicles. As a result, perishables may spoil in transit or take longer to reach markets, ultimately raising the cost of commodities (Oyesiku, 2002).
Transportation according to Rodrigue (2020) refers to the movement of people, goods, and services from one location to another, using various modes such as road, rail, air, and sea (Rodrigue, 2020). It is a fundamental component of economic infrastructure and plays a crucial role in the development and distribution of goods, particularly consumable commodities, which include food items, beverages, and household essentials. The price of consumable commodities is influenced by several factors, among which transportation is pivotal. Efficient transportation systems reduce the cost and time required to move goods from producers to consumers. Conversely, poor transportation infrastructure leads to increased operational costs for suppliers and retailers, which are often transferred to the final consumers in the form of higher prices (Aderamo & Magaji, 2010).
In many developing regions, including Nigeria, the state of transportation networks significantly affects the market prices of everyday goods. When roads are poorly maintained or fuel prices increase, the cost of conveying goods to markets rises, thereby increasing commodity prices (Oyesiku, 2002). Fluctuations in fuel prices and vehicle maintenance costs further complicate transportation economics. Transporters often factor in these variables when setting fares, which ripple through to the final cost of consumable items (Aderamo & Magaji, 2010). In many urban markets, especially in areas with high population density, commodity prices are largely determined not only by demand and supply but also by logistical costs. Even when there is an abundant supply of goods, poor transportation can create artificial scarcity, resulting in inflated prices. Therefore, this study investigates the link between transportation and the pricing of consumable commodities.
1.2 Statement of Problems
Investigation revealed that market women and local traders struggle to maintain stable prices when they must pay more for logistics. Farmers are discouraged from producing more when they cannot profit due to high transportation costs. Consumers, especially those with low incomes, are forced to make hard choices between food and other basic needs because the prices of commodities have become unpredictable.
Furthermore, what makes the situation more troubling is that the influence of transportation on prices is often overlooked in public discussions about inflation and cost of living. While factors like currency devaluation and demand-supply imbalances are often cited, the day-to-day logistical realities faced by traders and producers receive less attention. Hence, it is against this backdrop that this study aims to explore how transportation influences the pricing of consumable commodities.
1.3 Aim and Objectives of Study
The aim of this study is to examine how transportation influences the prices of consumable commodities. The specific objectives of this study are to:
- Identify the major transportation challenges affecting the movement of consumable commodities.
- Examine the relationship between transportation costs and the retail prices of consumable goods.
- Analyze how the condition of transport infrastructure influences commodity pricing.
- Investigate the role of distance and fuel prices in determining final commodity costs to consumers.
- Propose practical strategies to reduce the impact of transportation costs on the pricing of consumables.
1.4 Research Questions
Based on the objectives of the study, the following research questions have been formulated:
- What are the major transportation challenges affecting the movement of consumable commodities?
- How does transportation cost influence the retail prices of consumable goods?
- In what ways does the condition of transport infrastructure impact the pricing of consumable commodities?
- How do factors such as distance and fuel prices contribute to variations in commodity prices?
- What practical strategies is effective in reducing the influence of transportation costs on the prices of consumable goods?
1.5 Significance of Study
The outcome of this research study will benefit local and national government agencies by highlighting areas where investment in transport infrastructure will lead to better market outcomes. Improved road conditions and more efficient logistics will support smoother distribution of goods, reduce spoilage of perishable items, and stabilize prices.
Furthermore, traders and suppliers will benefit from this study, as it will reveal the cost implications of current transportation practices and suggest strategies for minimizing these costs. Additionally, researchers and students will find the study useful as a reference for further studies in areas related to transportation economics, supply chain management, and market dynamics.
Lastly, this study will provide academics and researchers with a foundation for further investigations into transportation economics and supply chain management, particularly in the context of developing economies.
1.6 Scope of Study
This study will focus on examining the influence of transportation on the prices of consumable commodities within Akwa Ibom State, Nigeria. The study will target selected local government areas, with emphasis on urban centers like Uyo, and semi-rural or rural areas such as Eket and Ikot Abasi, where agricultural products and consumables are frequently transported.
1.7 Limitations of the Study
A study of this nature is bound to experience certain problems as such the constraints imposed on the research include:
- Time Constraints: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.
- Financial Constraints: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.
- Lack of Cooperation: Many of the respondents are usually aggressive on issue that border cooperation among the respondents border.
- Response Bias: The study will involve surveys and interviews with cooperative managers and members. Response bias may occur if respondents provide socially desirable answers or if there is reluctance to disclose negative financial information due to privacy concerns or fear of repercussions.
1.8 Definition of Terms
Transportation:
Transportation refers to the movement of people, goods, and services from one location to another using various means such as roads, rail, air, or water. in the context of this study, it focuses on the system and processes involved in moving consumable commodities from producers to consumers, particularly within Akwa Ibom State (Rodrigue, 2020).
Consumable Commodities:
These are goods that are intended for immediate consumption by individuals or households. Examples include food items, beverages, toiletries, and other household essentials. They are usually non-durable and need to be replenished regularly (Kotler & Armstrong, 2018).
Commodity Pricing:
This refers to the final selling price of a good as determined by several factors such as production cost, market demand, availability, and transportation cost. For consumable goods, pricing is highly sensitive to logistics and supply chain efficiency (Mankiw, 2020).
Logistics:
Logistics involves the planning, implementation, and control of the efficient movement and storage of goods from the point of origin to the point of consumption. It includes activities such as warehousing, transportation, inventory management, and order fulfillment (Christopher, 2016).
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