ANALYSIS OF MARKETING EFFICIENCY OF TOMATO FRUITS IN ABUJA MUNICIPAL AREA COUNCIL, NIGERIA

Abstract

The study examined the marketing efficiency of tomato fruits in Abuja Municipal Area Council, Nigeria. The market structure analysis with gini-coefficient of 0.7152 implied that, there was a high degree of inequality and high level of concentration within the markets. Analysis of income distribution among the marketers with gini-index of 0.4 revealed that there was less inequality in the income of the marketers. The market conduct results indicated that there was no fixed/regulatory pricing by the government or any marketing cooperative for tomato product. Rather, prices were determined mostly by price bargaining power (17.8%), forces of demand and supply (34.7%) and Marketing cost and margin (40.5%). Market performance analysis involved the estimation of the marketing margin and costs and returns analysis. The gross marketing margin of wholesalers was ₦66. 27/kg while that of the retailer was ₦68.14/kg. Costs and returns analysis with gross ratios of 0.31 and 0.62 for the wholesalers and retailers showed that tomato fruit marketing was a profitable business venture in the area. Marketing efficiency estimation for wholesalers and retailers indicated a low level of efficiency though wholesaler was more efficient than retailers. Based on the findings, it is therefore recommended that premium motor spirit should be made available to the road transport workers at lower rate to reduce transportation cost due the long queues at filling stations and patronage of black marketers.