Economics of Fresh Tomato Marketing in Kosofe Local Government Area of Lagos State, Nigeria

A. E. Obayelu, A. O. Arowolo, S. B. Ibrahim and A. Q. Croffie

Nigerian Journal of Agricultural Economics, 2014, vol. 04, issue 01

Abstract: The study was carried out to analyze the economics of fresh tomato marketing in Kosofe Local Government Area of Lagos State, Nigeria. The study was based on primary data using structured questionnaire. A total of 80 tomato marketers were selected from four major markets using simple random sampling technique. Descriptive statistics, gross margin analysis, marketing margin analysis and multiple regression analysis were used to analyze the data. The study revealed that female marketers dominated (73.7%) the markets. Most (56.2%) were within the age bracket of 31- 50years and 47.5% of them had no formal education. The cost and return analysis revealed that the variable costs constitute the total cost of marketing (100%) with cost of purchase (99.76%) constituting the highest. The cost of marketing was ₦48.57/kg and total revenue was ₦27, 374.16. A gross margin of N6, 976.12 and returns per naira invested of 1.34k indicates that fresh tomato marketing is profitable. The marketing margin on fresh tomato was 25.66%. Purchase price of tomato, transportation costs, marketing experience and level of education were significant determinants of the quantity of fresh tomatoes purchased by the marketers for sale. Problems associated with fresh tomato marketing included inadequate storage facilities (29%), high cost of transportation (23%) and lack of capital (20%). It is therefore recommended that means of transportation and storage facilities should be made available to reduce the marketing costs and facilitate the marketing of tomato. Marketers should be encouraged to join co-operative societies to help improve means of credit and as well acquire more formal education.

Keywords: Production Economics; Productivity Analysis (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:naaenj:267884

DOI: 10.22004/ag.econ.267884

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