Efficiency of Vegetable Marketing in Peri-Urban Areas of Ogun State, Nigeria

Project Abstract

<p>&nbsp;                  <b>ABSTARCT&nbsp;</b></p><p>Against the backdrop evidenced in the substantial wastage, deterioration in quality, and frequent mismatch between demand and supply of vegetables spatially and overtime; this study examined the efficiency of vegetable marketing in Ifo and Ado-Odo L.G.As of Ogun State, Nigeria. Primary data were employed for the study. Data were collected from 120 respondents with the aid of structured questionnaire using multistage sampling procedure. Analytical tools used included, Descriptive statistics, budgetary and marketing efficiency analyses. The study revealed that women (78.3%) were the major players in the enterprise and most had basic education with majority having business experience of more than five years. However, they relied on their personal savings to run their enterprise. Indigenous vegetable marketing was found to be profitable and efficient as indicated by the positive net margin of ₦29,180.05. As an indication of the profit maximization motive of the marketers, various marketing efficiency scores were computed for the selected indigenous vegetables. The scores are 10.85%, 3.88%, 5.27%, 2.54%, 5.32%, and 2.46% for ugu, tomato, okra, amaranthus, celocia and chocorus, respectively. It is recommended that extension trainings on preservation of indigenous vegetables should be conducted and accessible funds should be made available to these marketers, to forestall the problem of spoilage and lack of funds, as these constituted major drawbacks on marketing efficiency in the study areas. Keywords marketing efficiency, net margin, Ogun State, vegetables <br></p>

Project Overview

<p> <b>1.0 Introduction&nbsp;</b></p><p>In sub-Saharan Africa, indigenous vegetables have been significant component of households’ diet (Oluoch et al., 2009). They are of great nutritive value and are important sources of vitamins, minerals, proteins, carbohydrates and dietary fibers. Hence, vegetables are essential components of the human diet. It is often said that the nutritional security of a country can be achieved only when enough vegetables are consumed (Udoh &amp; Etim, 2006a). According to FAO (1998), vegetables refer to all categories of plants whose leaves, fruits or roots are acceptable and used as vegetables by urban and rural communities through custom, habit and tradition. There are a host of terms describing traditional African vegetables (TAV), including indigenous African vegetables (IAV); African indigenous vegetables (AIV) traditional leafy vegetables (TLV); African leafy vegetables (ALV); traditional African leafy vegetables (TALV or TLV)—and all are subject to contested meanings (Ambrose-Oji, 2009). However, in Nigeria, some common indigenous vegetables include Ugu (Telfairia occidentalis), water leaf (Talinium triangulaire), bitter leaf (Vernonia amygdalina), Green (Amaranthus caudatus) and ukazi (Gnetum africanum) and examples of fruit vegetables are cucumber, garden egg, carrot, Cabbage, and onion. Vegetables are very essential for human consumption and must be available at all times in an adequate amount and quality. It must also be safe for consumption, and the price must be within the range of the consumers’ budget (Firdaus &amp; Gunawan, 2012) Indigenous vegetable production like any other farming activity utilizes resources. Udoh and Etim (2006a) opined that for optimum production, available resources must be utilized by farmers as efficiently as possible and as managers of land, they need to manage problems arising from deteriorating natural resources (Rosegrant et al., 2005; cited in Udoh &amp; Etim, 2006b). Also, it is noteworthy that information on the distribution and marketing of these vegetable species would be vital and could constitute the prop on which intervention on the development of the marketing system should be based (Agbugba et al., 2011). In the same vein, the fluctuations in the prices of vegetables could have negative impacts on the consumers, and also increase the possibility of farmers to experience loss, when the price information in the marketing chain does not reach them as at when needed.&nbsp;</p><p>Thus, the linkage between producer and market is very important in order to increase farmers’ income. For these reasons therefore, marketing efficiency is a very important goal. In recent years, there have also been great concerns regarding the efficiency of marketing of fruits and vegetables in Nigeria. This is evident in the substantial wastage, deterioration in quality, and frequent mismatch between demand and supply of vegetables spatially and over time. It is believed that poor linkages in the marketing channels and poor marketing infrastructure are leading to high and fluctuating consumer prices, and only a small proportion of the consumers’ money is reaching the vegetable farmers (Akinpelu &amp; Adenegan, 2011). Against this backdrop, this study was therefore carried out to describe the socioeconomic characteristics of vegetable marketers in the study area; identify the marketing channel of selected vegetables; determine the efficiency of vegetable marketing; and describe the constraints faced in vegetable marketing in the study area.&nbsp;</p><p><b>&nbsp; 1.1 Vegetable Marketing in Nigeria&nbsp;</b></p><p>Vegetable marketing is one of the most rewarding and risky farming activities. Its special characteristics, high perishability and price and yield variations throughout a production year, coupled with the changing customers’ demand could lead to increased uncertainty encountered by vegetable marketers (Vassalos, 2013). In the same vein, Adenuga et al. (2013) described marketing of vegetable as a complex phenomenon due to its perishable nature, seasonality and bulkiness. To mitigate this challenge, they argued that vegetable production requires an efficient marketing system. From their findings they prescribed the development of motor-able roads and efficient transport system, together with strengthening of vegetable farmers’ cooperatives as factors that may enhance farmers’ marketing efficiency in Kwara State, Nigeria. Noteworthy is the fact that heavy losses are encountered in crop production. According to Ibeawuchi et al. (2015), no one knows exactly how much food is lost between harvest and consumption. The supplied figure for post-harvest loss estimates for fruits and vegetables are difficult to substantiate except on limited, controlled experimental basis. However, it is significant to mention that losses in fruits and vegetables between rural production and town consumption in the tropics are as high as 50% (Oyeniran, 1988). These losses have been observed to occur during transportation, storage and marketing (Daramola, 1998). Other established factors responsible for the damages and losses in fresh produce are; vibrations resulting from the transport vehicles as they navigate undulation and irregularities on the roads (Jones et al., 1991 cited in Ibebuchi et al., 2015). Another factor is attributed to the use of unsuitable packaging containers. To minimize these losses, they proffered that government should provide infrastructural facilities such as electricity and good roads since storage facilities require electricity to operate them. Also, in a related study, Oladapo et al. (2007) found that chief among factors that contributed to high marketing cost, is transportation cost followed by storage cost. Their findings were corroborated by Fafchamps and Minten (2001) who asserted that transport cost is important for the reduction of marketing cost <br></p>