Abstract
Stabilization of prices on agricultural commodities continues to remain an area of major concern for policymakers. Price change affects both producers and consumers and has macroeconomic implications as well since it is the most readily available and reliable information that guide those in the value chains addition and consumers in Nigeria and the world at large. This study aimed at measuring the dynamics of selected farm commodity price behaviour in Akwa Ibom State, Nigeria. The specific objectives were to; assess the yearly average retail prices of selected farm commodities; analyse the yearly retail commodity price changes and ascertain the volatile nature of selected farm price behaviour over time in Akwa Ibom State. Secondary data on quarterly average price of vegetables, grains, roots/tubers, cassava derivatives, oils, meats/catfish in ₦/kg covering the period from quarter one (Q1) in 2000 to quarter four (Q4) in 2019 making a total of 80 quarters (20 years) was obtained from AKADEP, Akwa Ibom State Ministry of Economic Development and NBS quarterly publications which were analysed using descriptive statistics, Fisher’s Price Index Model and inferential statistics (GARCH (1,1). Findings showed that the average prices for these commodities were shown in this order; ₦648.20 (meat/dried catfish) ₦343.35 (grains), ₦236.76 (oils), ₦158.07 (vegetables), ₦144.29 (roots and tubers) and ₦132.41 (cassava derivatives) respectively. The yearly price changes from 2000 – 2019 indicated a percentage fluctuating change for all selected farm commodities. The nature of volatility on-farm price behaviour indicated high volatility persistence of 0.97 on meats/fish. To substantially stabilize selected farm commodity prices, there must be a concerted effort such as the revamping and revitalization of all the moribund food reservoirs, establishment and decentralization of functional new ones for the storage of farm commodities across the state. This would be recognized as an effective instrument to tackle price changes, volatility and foster price stability in the study area.