Economic analysis of tomato marketing in Ilorin metropolis, Kwara State, Nigeria

Abstract

Marketing of tomatoes is a complex phenomenon due to their perishable nature, seasonality and bulkiness, and as such, tomato production requires an efficient marketing system. Studies on tomato marketing in the study area are rare in the literature. Thus, this study analysed tomato marketing in Kwara State, Nigeria. A simple random sampling technique was used in the selection of one hundred and twenty tomato marketers. A well-structured questionnaire was used for data collection. Data collected were analysed using descriptive, Herfindahl index, costs and returns analysis and multiple regression analysis. The study revealed that most (70%) of the marketers were female with mean age of 39.5 years. The Herfindahl index of 0.008 revealed that the tomato market tended toward pure competition. Furthermore, tomato marketing is a profitable venture in the study area with a monthly gross margin of N310,095. The average rate of returns to total investment was 52.6%. This implies that an average profit of N53k was realized on every naira invested in vegetable marketing in the area. Moreover, the regression analysis indicated that about 96% of the total variation in net returns was explained by the independent variables. The study revealed that purchase cost, labour cost, transport cost and marketing experience were important in determining the net returns of tomato marketers. Most (30%) of the respondents identified finance to be their major constraint. This study therefore recommends that tomato marketers should pool their resources to reap the benefits of economies of scale. Also, policies and strategies that lower marketing cost should be vigorously pursued