MARKET STRUCTURE AND PERFORMANCE OF FRESH TOMATOES IN IBADAN METROPOLIS, OYO STATE

Abstract

Market structure is one of the major factors that determine the efficiency of the marketing system. Imperfections in market structure will prevent actors from realizing maximum benefit. Understanding organizational relationship among buyers and sellers will go a long way in determing the efficiency and performance of marketing agricultural commodities. The study therefore examined tomato marketing in Ibadan metropolis of Oyo state, Nigeria. A random sampling technique was used to select eighty-five fresh tomato marketers (wholesalers and retailers). Data were collected with the aid of well structured questionnaire. The data were analyzed with the aid of descriptive and inferential statistics. The results showed that 67.5% of the wholesalers were men while most of the retailers were women (90%). The study also revealed that 47.5% of the wholesalers had been in the business for 11-15 years and up to 39% of the retailers had between 6-10 years experience in marketing tomatoes. The age of majority of the wholesalers ranged from 31-41 years and was younger than the majority of retailers who were 41-50 years. While a typical wholesaler was found to sell an average of 52 baskets in the peak season and an average of 14 baskets during the lean season, a retailer was found to sell only an average of 1 and 3 baskets (average weight of 40 kg) during the lean and peak season respectively. Marketing margin values of N 116 and 350 were obtained per 40 kg basket by the wholesalers during the peak and lean season respectively. The average marketing margins per 40 kg basket of tomato for retailers were N 500 during the peak season and N 705 during the lean season. Inferentially, marketing efficiency obtained for both wholesalers and retailers were greater that one (ME>1). Gini coefficient of wholesalers and retailers were 0.46 and 0.45 indicating that the market was competitive. A major marketing problem identified by the traders was the perishable nature of the commodity. This study, therefore, brings to fore the critical need for improved methods of packaging and establishment of cold storage facilities, especially, during the peak periods, to improve the shelf-life of the tomatoes.