Market concentration and efficiency’s determinants of tomato production in Oyo State, Nigeria

Abstract

The study assessed the efficiency of tomato production and market concentration among farmers in Orire Local Government, Ogbomoso, Oyo State, Nigeria, employing a multi-stage sampling technique, resulting in a sample size of 120 respondents. A structured questionnaire developed by the researcher was utilized as the research instrument. Analysis was conducted using descriptive statistics, budgetary techniques, the Herfindahl-Hirschman Index (HHI), and the Cobb-Douglas production model. Findings revealed that 76.7% of respondents were male, with an average age of 52.6 years. Additionally, 89.2% were married, and 69.2% had formal education. The average household size was 5.4, with an average farm size of 4.3 hectares. Respondents had an average of 16.4 years of experience in tomato production. The cost and return analysis indicated that tomato production is profitable in the study area, with a return on investment of N1.71, meaning every 1 naira invested yields a return of N1.71 kobo. The market concentration index was 1325, suggesting competitive market conditions. The Cobb-Douglas model identified key factors influencing production efficiency: education, household size, farm size, farming experience, credit access, seeds, fertilizer, pesticides, and herbicides. The study recommends that financial institutions offer affordable credit facilities and that agricultural extension services and post-harvest practice workshops be provided to enhance farmer incomes and reduce tomato waste. Keywords: Tomato, Production, Efficiency, Price Competitiveness, Farmers,