Assessing Tomato Marketing Efficiency in Selected Agro-Ecological Zones of Ghana

Abstract

Tomatoes are a crucial component in the diets of Ghanaian households and contribute significantly to the nutritional needs of most rural and peri-urban farmers. However, tomato marketing and its related activities in Ghana are low compared to its production. Against this backdrop, this study examines the marketing efficiency of tomatoes in selected agro-ecological zones of Ghana. A snowball technique was used to determine 65 market players from four (4) major markets of the three agro-ecological sectors. Using marketing margins and the ordinary least squares (OLS) regression, we analyze the marketing efficiency of actors in the tomato value chain and the determinants of farmer's marketing efficiency. The results revealed that farmers' marketing efficiency (ME) was higher than ME of wholesalers but not as high as those attained by retailers; however, farmers had the least market power. The results further revealed that variables such as education, experience in tomato farming, membership in FBO, GSZ location, price of tomato, cost of storage and post-harvest losses significantly affect ME of farmers. The study recommends that the government invest in efficient transportation and storage infrastructure to reduce transportation and storage costs in the tomato value chain. Government should also strengthen the buffer stock program to buy farm produce and stabilize prices to minimize exploitative power of market queens and retailers in the tomato value chain.