Abstract

The degree of price variation of fresh tomato over space and time; and its effect on consumer welfare is not yet known in Nigeria. This study therefore examined the effect of spatial and seasonal price variations of fresh tomato marketing on the welfare of consumers in Nigeria. Primary data were collected with structured questionnaire from 240 randomly selected tomato marketers. The data were analyzed using descriptive and inferential statistical tools. Finding showed that the mean price of fresh tomato per basket was N16,350 for minor markets and N12,450 for major markets. Test of hypothesis indicated a significant (p<0.05) spatial price variation. Further result indicated a significant (p<0.05) inter-seasonal price variation with a mean of N18,000/basket for off season and N6,400/basket for peak season. The result revealed that seasonal price variation (64.4%) is higher than spatial price variation (23.9%) in Nigeria. Regression result and factor analysis indicated that duration of product in store before sale, bargaining power of seller, patronage, packaging charges and transportation cost were the most significant determinant of fresh tomato price variation which affect the welfare of tomato consumers. Price variation exerts negative and significant (p<0.05) effect on consumers welfare through higher expenditure on consumption and low level of patronage (demand). We recommended that government should improve the rural road network to reduce transportation cost and spoilage of fresh tomato in Nigeria.

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