DETERMINANTS OF MARKET MARGINS AMONG OKRA TRADERS
In the tropics, okra is an important vegetable crop and its production is a viable livelihood activity; however, several factors affect its marketing and margins derivable thereof. Therefore, this study analyzed the determinants of market margins among okra traders in Owerri, Imo State, Nigeria. Primary data collected via multistage sampling were analyzed using descriptive statistics, market performance and regression analysis. The results revealed that the estimated market margin and market efficiency index were ₦1900/bag (100kg) and 0.35, respectively. Channel 4 (27%) had the highest percentage of commodity sales volume. The coefficient of multiple determination (R2) was 0.826; hence, 83% variation in the market margin was accounted for by variables in the regression model. Moreover, coefficients of the variables including age (0.873), education (0.696), market experience (0.571), cost price (–0.598), quantity sold (0.576), marketing cost (–0.72) and income level (0.98) were significant determinants of okra market margins. They identified constraints affecting okra marketing in the study area. This study recommends the provision of incentives, policy adoption to mitigate income inequality and improve market performance; regulation of commodity prices, agent exploitation and marketing costs; adoption of modern communication tools and technologies, market channel diversification; provision of market infrastructures and interventions.
market channels; market margin; marketing efficiency; determinants; market constraints
Adesope, A.A.A., Awoyinka, Y.A., Babalola, D.A. (2009). Economic analysis of group marketing of pineapple in selected markets of Osun State, Nigeria. J. Life Physic. Sci., 3(1), 47–52.
Arene, C.J. (2003). An introduction to agricultural marketing analysis and policy. Fulladu Publishing, Enugu, Nigeria.
Ariyo, O.C., Ariyo, M.O., Okelola, O.E., Omodona, S., Akesode, H.A. (2013). Profitability analysis of plantain marketing in Kaduna Metropolis, Kaduna State, Nigeria. J. Agric. Soc. Res., 13(1), 21–30.
Anuebunwa, F.O., Lemchi, J.I., Njoku, J.E. (2006). Gari Marketing System in Abia State of Nigeria: An assessment of gari marketing margins. J. Sust. Trop. Agric. Res., 17(2), 21–25.
Anuebunwa, F.O. (2006). An assessment of the rice market structure in Ebonyi State of Nigeria. Proceedings of the 40th conference of the Agriculture Society of Nigeria. National Root Crops Research Institute. Umudike Abia State, Nigeria, 16–20th October (pp. 87–89).
Asa, I.K., Okechukwu, F.O., Solomon, R.J. (2012). Challenges and strategies of marketing indigenous leafy vegetables in Nigeria. J. Home Econ. Res., 15(2), 11–20.
Ayoola, J.B., Zever, J.I. (2010). Factors affecting the efficiency of maize marketing in Vandikya local area of Benin state, Nigeria. Int. J. Agric. Food Syst., 7(1), 17–23.
Bamire, A.S., Oke, J.T. (2003). Profitability of vegetable farming under rainy and dry season production in Southwestern Nigeria. J. Veg. Crop Prod., 9(2), 11–18.
Bopape, L.E. (2006). The influence of demand model selection on household welfare estimates: Application to South African food expenditures. An unpublished PHD dissertation submitted to Michigan State University.
Eronmwon, I.G., Alufohai, O., Ada-Okungbowa, C.I. (2014). Structure, conduct and performance of plantain marketing in Edo State, Nigeria. J. Appl. Sci. Env. Manag., 18(3), 437–440.
Farinde, O.K., Owolarafe, A., Ogungbemi, O.I. (2007). An overview of production, processing, marketing and utilization of okra in Egbedore local government area of Osun State, Nigeria, Agric. Eng. Int.: CIGRE J., 4(1), 27–40.
Greene, W.H. (2002). Econometric analysis (5th ed.). New York University Upper Saddle River, New Jersey, USA.
guatemala.gt (n.d.). Retrieved Oct 2nd 2010 from: http://www.Imostate.Com/2006
Horna, J.D., Gruère, G. (2006). Marketing underutilized crops for biodiversity: The case of the African Garden egg (Solanum aethiopicum). Ghana 8th International BIOECON Conference, 29–30 August 2006, Kings College Cambridge.
Iheke, E.C. (2010). The performance of vegetable production and marketing in Aba, Abia State, Proceed. Agric. Soc. Nig. Conf. Umudike, 133–136.
Kennedy, G., Razes, M., Ballard, R., Dop, M.C. (2011). Measurement of dietary diversity for monitoring the impact of food based approaches. Retrieved from: www.foodsec.org/fileadm/user_upload/eufao_fsi4dm/ docs/Dietary_Diversity_Paper.pdf
Nwaiwu, I.U., Eze, C.C., Onyeagocha, S.U.O., Ibekwe, U.C., Korie, O.C., Ben-Chendo, N.G., Henri-Ukoha, A., Osuji, M.N., Kadiri, F.A., Ukoha, I.I. (2012). Determinants of net returns from garden egg marketing (Solanum melongena). Int. J. Agric. Rural Dev., 15(3), 1258–1263.
Obasi, I.O. (2008). Structure, conduct and performance of rice marketing in Abia State, Nigeria. MSc. Thesis, Department of Agric. Economics, Michael Okpara Univ. of Agr., Umudike, Nigeria.
Ojo, A.O., Ojo, A.M., Usman, K.I. (2014). Structure and performance of oil palm marketing in Kogi State, Nigeria. Prod. Technol. J., 10(2), 22–31.
Onuwa, G.C., Mudi, A., Yitnoe, G.S., Babatope, O.I. (2017). Profitability of African Pearl Millet Marketing in Jos North LGA of Plateau State, Nigeria. Proceedings of the 31st Annual conference of the Farm Management Association of Nigeria (FAMAN), Bauchi, Jibril, S.A. (pp. 765–770). FAMAN.
Sreenivasa, M.D., Gajanana, T.M., Sudha, M., Dakshinamoorthy, V. (2007). Marketing losses and their impact on marketing margins: A case study of Banana in Karnataka. J. Agric. Econ. Res. Rev., 20, 47–60.
Toure, M., Wang, J. (2013). Marketing analysis of tomato in the district of Bamako, Republic of Mali. J. Econ. Dev., 2(3), 84–89.
Ugwumba, C.O.A. (2009). Analysis of fresh maize marketing in Anambra state, Nigeria. A Journal of Research in National Development. Retrieved Aug 15th 2012 from http://www.transcampus.org/JORINDV7Dec2009/JournalsV7NO2Dec200920.html
USDA (n.d.). Retrieved Ag 20th 2022 from: https://reeis.usda.gov/web/crisprojectpages/0192605-economic-analysis-of-determinants-of-marketing-margins-For-food.html
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This journal permits and encourages authors to post items submitted to the journal on personal websites or institutional repositories both prior to and after publication, while providing bibliographic details that credit, if applicable, its publication in this journal.