Journal of Marketing and Consumer Research www.iiste.org ISSN 2422-8451 An International Peer-reviewed Journal Vol.26, 2016 1 Analysis of Market Prices of Selected Agricultural Commodities in Akwa Ibom State (1996-2014) Ekanem Abasiekong Etuk * Mfonobong Okokon Effiong Department of Agricultural Economics, University of Calabar, Calabar Abstract The study analyzed the market prices of selected agricultural commodities in Akwa Ibom State (1996 – 2014). Specifically, a trend analysis of prices of selected agricultural commodities in Akwa Ibom State from 1996 – 2014 was carried out. Secondary data were obtained from the Statistics Division, Ministry of Finance and Economic Development Uyo, Akwa Ibom State. Data obtained was analyzed using descriptive and inferential statistics. The study revealed that the retail market prices of the selected agricultural commodities moved in the same direction. The mean annual percentage changes in the retail market prices of the selected agricultural commodities were high as the trend analysis showed a strong upward trend in prices overtime. Based on the findings, it was recommended that, there is need for current information especially in the area prices as it affects production and distribution of these commodities as this shapes expectations about future prices thus enabling the markets to function effectively. Also, policy measures that will encourage the collection of information on food stock should be adopted as this would better inform market participants and help avoid panic-induced price surges resulting from misinformation. Keywords: agricultural commodities, market prices, trend analysis 1.0 INTRODUCTION Prices act as an indicator or signal for scarcity or surpluses which helps farm firms respond to changing market situations. Agricultural commodity price is an ongoing concern among policy makers as well as all the participants along the food supply chain. Thus, understanding the market price movement of agricultural commodities is one way of promoting farm resource use efficiency and curbing some of the spilled over vices such as unemployment. This implies that, good and efficient pricing system will enhance commodities production which in turn could help to correct some distorted situation in the economy. Market prices are crucial in determining efficient distribution of resources in a market system. Effective price system is a major hinged on the sustainability of agricultural activities which causes long- term and short term price fluctuations in agricultural commodities between productions seasons in Nigeria “International Monetary Fund, 2000”. Several factors have been seen to be responsible for the volatility in price of agricultural commodities in Nigeria. This has to do with variances in bargaining power, seasonality of production, cyclical income fluctuation among sellers and consumers, inappropriate response by farmers to price signals and natural shocks “Gilbert, 1999”; Udoh & Sunday (2007); Adebusuyi, (2004). Instability in commodity prices among markets is highly detrimental to the marketing system and the economy as a whole as it has cause inefficiency in the allocation of resources depending on the source of variability. Thus, the major determinants of quantity of goods supplied and demanded by consumers is the agricultural retail commodity price “Akpan, 2007”. In developing countries, a unified product price among markets is irrational owing to its increased cost of externalities, deteriorating infrastructural amenities and the nature of the products which results in differences in total variable costs incurred. In Nigeria today, there is a growing concern for food security with particularly focus on agricultural products due to increasing population (Chen, 2003). With income as a constraint, food consumption is to very large extent determined by prices of food items. In the face of and low per capita income, increase in population, low agricultural productivity resulting in demand for food outstripping supply and leading to high prices of food items, a large percentage of the income of consumers is spent on food, further worsening economic hardship faced by the people. This led to a number of studies carried out by researchers over the years on price transmission or market integration of food stuff in Nigeria’s markets aimed at addressing these problem. Some of which include: “Adekanye (1988), Ejiga (1988), Dittoh (1994), Okon (1999), Okoh and Akintola (1999), Okon and Egbon (2005), Akpan and Aya (2009), Akpan et al., (2014)” amongst others. Comparison of results of various methods has not been used in these studies, but most studies have been carried out in other regions with southern region of Nigeria being exceptional ”Dittoh 1994: Okoh and Egbon, 2005: Adenegan & Adeoye, 2011” with results used to generalize for other regions in the country. Wrong signals for price transmission system was seen which led to faulty marketing policies and programs in southern region of the country. Hence, the purpose of this research is to fill these identified gaps in the literature with particular reference to Akwa Ibom State. Specifically, the study sets to; • Assess the movement of annual mean retail market prices of selected food items in Akwa Ibom State between 1996 – 2014, • Estimate annual percentage change in the retail market prices of selected commodities across the state