CHAPTER ONE

INTRODUCTION

1.1    Background of the Study

The need of Agricultural marketing arises with the production of excess, over and above consumption. This related to the concept of marketable surplus which is defined as the proportion of the total output that is available for sale after satisfying the producer. Consumption seed for next seasons planting. There is however, an exemption in this concept; as certain agricultural commodities are produced for meeting specific population need, this kolanut is widely grown in the Southern part of the country, transported and sold to the people of the Northern part of the country who relish the commodity. Marketing bridge the gap between production and consumption. It brings together the impersonal forces of supply and demand in respective of where the market is located. Therefore, one is involve in marketing whether one grows yam, sells the tubers or process to yam flour and sell it to the village or town market in the Southern part of the country or receives supplies of grains, onions from the North.

Marketing Cooperative are found in Nigeria to be performing unique functions towards the development of Nigeria economic activities cooperative marketing could be a dynamic forces in the process of economic development takes place, the marketing system is expected to extend some influence on the social, political and economic sphere of the society. This fact was supported by the World Bank report of 1954 that ‘the cooperative movement can provide a valuable organizational basis for agricultural development’ marketing cooperative also serves as auxiliary cooperative.