The Effects of Transportation Cost on market Prices of Food Commodities in South-West, Nigeria.

Transportation is crucial to the efficient and effective distribution of agricultural produce globally. In developing nations, smallholder farmers located in rural communities constitute greater percentage of agricultural producers which provide food commodities for the generality of the populace. The importance of the study of the effects of transportation cost on the prices of food commodities is significant in addressing the challenge of food insecurity in the South-West region. The aim of this study is to determine the effects of high transport cost on the price food commodities South-Western, Nigeria. Three of the six (6) states that constitute the South-West, Nigeria were selected for the study (Oyo, Osun, and Ekiti States). Four Hundred (400) structured questionnaires were administered based on the Taro Yamen’s formula. 389 of the returned questionnaires were adjudged suitable for the study. The data obtained were analyzed using both the descriptive and Inferential Statistics. The findings show that a significant majority of the respondents (74.6%) believe that transport cost significantly affects the prices of food commodities. The study concludes by recommending the rehabilitation of rural roads, provision of infrastructure, formulation of workable transport policy to develop other modes of transportation, addressing the issue of extortion by security operatives as a means of addressing the escalating prices of food commodities in South-West, Nigeria.