Spatial market integration analysis of plantain markets in mid Ghana

The paper estimates the degree of integration of plantain prices in three selected markets to assess the efficiency of the plantain marketing system in mid Ghana. The selected markets are Techiman in Bono East Region, Kenyasi and Duayaw Nkwanta markets both in Ahafo Region of Ghana. The spatial market integration analysis was done using the error correction model on monthly wholesale real prices in Ghana cedis (GH¢) per 9–11 kg bunch of plantain from 2006 to 2015. The findings of the analysis indicate that the plantain markets are weakly integrated spatially with an overall degree of integration of 17 percent which suggests weak market efficiency. Therefore, strengthening the implementation of government policy on market information, especially in producing areas, will be useful in improving plantain market efficiency.Plantain’s role as a source of food and income among Ghanaian households cannot be overemphasized. However, like it is with many African countries, inefficiency in marketing the product is prevalent in the country. There are many marketing problems that smallholder farmers encounter which determine how far plantain production can be expanded. Various efforts have been made by governments to address the marketing situation of staple food crops, in general, but they appear to be inadequate. Yet, marketing of plantain has not received as much attention as is given to its production. This study ascertains the efficiency of the plantain marketing system in mid Ghana by estimating the extent of spatial integration of plantain markets in the area. Analysis showed that there exists both long-run and short-run market integration among plantain markets in mid Ghana, albeit weak in each case. Suggestions to improve situations are provided.