Market Integration Analysis of Tomato Markets in Sudan

Abstract

Tomato is a leading crop in the world and in Sudan that is characterized by seasonality and perishability, which causes instability in market supplies and prices in the world, including Khartoum State and other markets of Sudan. This study aimed to estimate market integration in Khartoum State, Sudan. The study depended mainly on secondary data obtained from relevant sources. The study used descriptive analysis, Box-Jenkins Autoregressive Moving Average (ARMA), and Autoregressive Integrated Moving Average (ARIMA) time series analysis. The results of the time series analysis indicated that the prices of tomatoes were stable and variable throughout the year, reflecting a seasonal pattern. The results of the co-integration analysis indicated the strong integration among the different tomato markets in Sudan, with Khartoum and Port Sudan having 85% and Khartoum and Zalingei markets having a 67% level of co-integration. The study concluded that despite the poorly organized marketing system, the tomato market channel is well-integrated as prices tend to move up and down together in all markets of Sudan. The study recommended the encouragement of production and marketing cooperatives for farmers and traders under the close supervision and management of concerned institutions, ministries, and national and commercial banks and the introduction of adequate and appropriate transportation vehicles and packaging material for tomatoes.