MARKETING OF DRY SEASON VEGETABLES IN SOUTH-EAST NIGERIA

ABSTRACT

The study analysed the marketing of dry season vegetables in South-East Nigeria. This study was carried out with five specific objectives. The specific objectives included (i) description of the channel, as well as the analysis of the structure and conduct of marketing of dry season vegetables in South-East Nigeria; Objective (ii) determined the marketing margins of dry season vegetables marketers; (iii) determined the  effect  of the constraints on the  margins of dry season vegetables marketers; (iv) determined the price causality in the marketers’ prices of dry season vegetables; (v) measured the extent of market integration of dry season vegetables in the study area. Multi-stage sampling technique was used to select a total sample size of 227 respondents for the study. Data was collected for 61 days using 2 sets of structured questionnaires for the wholesalers and the retailers. Data were analyzed using simple descriptive statistics, Gini coefficient model, marketing margin analyses, Pearson Chi-square model, Granger causality tests and Bivariate autoregressive model of Dynamic spatial and temporal market model. The results showed that there were no barriers to entry and exit in and out of the vegetables markets during the dry season period. Also, eight (8) marketing channels were identified and described for Ugu and Okra respectively. The marketing margin analyses showed a high percentage margin of Okra marketers as 93%, and that of Ugu marketers as 79%, implying that dry season vegetables marketing is a profitable business venture in the study area. The identified constraints included: problem of storage, high transport cost, lack of market, poor sales, lack of market stalls, poor preservation facilities, weather problem and inadequate capital. Pearson Chi-square results showed that few constraints such as problem of weather, lack of market stalls, lack of market, problem of weather and problem of poor sales were significant to the marketers’ margins either at 5% or 10% levels of significance. Granger causality test showed that there was bilateral price causality existing between the farmgate and wholesale prices, as well as bilateral price causality relationships between the wholesale and their retail prices respectively. There was no causality relationship between the farmgate and the retail prices. But there was a unidirectional price causality relationship existing between the wholesale price of Okra and retail price, and not the other way. Bivariate autoregressive model which was used to measure the extent of integration amongst the vegetables markets ascertained that there was significant relationship between the central and local market prices for Ugu wholesalers and retailers, as well as Okra wholesalers and retailers. From the result, it showed that there is an instantaneous adjustment to price changes in the market pairs of the marketers, an indication of perfect competitiveness amongst them, suggesting the existence of non-collusive pricing arrangement. Hypothesis (i) was accepted and rejected for the marketers’ prices, based on the judgment from their results. For instance, there were bilateral price causalities for both Ugu wholesalers’ and retailers’ purchase and selling prices. On the other hand, hypothesis (ii) was also accepted and rejected based on the findings. For example, it was rejected Ugu retailers, Okra wholesalers and Okra retailers, because their local and central markets were  integrated  at  5%,  5%  and  1%  significant  levels.  The  study  therefore,  recommended  that government  should  build  sufficient  and  modern  market  stalls  to  ensure  and  foster  conducive environment and as well provide hygienic environment for their sales. Moreso, waste places and incinerators should be built  by the government in order to maintain a clean market environment. Government should build new roads and repair worn out roads, as well as construct railways to link the northern regions due to huge supplies from there; marketers should form market associations, which will in turn bring about easy access to information as well as lower transaction costs. There is need for improved information on current market prices, margins and supply situation of the marketers; as well as need to strengthen emphasis with research on dry season marketing of vegetables.

CHAPTER ONE

INTRODUCTION

1.1      Background

Agriculture is receiving increasing attention as an instrument for growth, especially going by the World Development Report 2008 (WDR) titled  “Agriculture for Development” (World Bank, 2007). Agriculture is one of the most important sectors in all developing countries (World Bank, 2008). Agriculture remains the largest sector of the Nigerian economy, where it plays an important role as food provider, employer of labour, foreign exchange earner, key contributor to wealth and poverty alleviation (Onyishi, 2010). From statistics, agriculture contributes about 31% of the Gross Domestic Product (GDP), with crops accounting for 87%, livestock 7%, fisheries 4% and forestry 2% (Central Bank of Nigeria, 2011). It employs about 51.3% of the labour force in Nigeria and accounts for 70% contribution to GDP of the non-oil sector (Mang, 2009; National Bureau of Statistics, 2010; World Bank, 2010; Achike and Ichoku, 2011). With the projected annual population growth rate of 5.5% and food production annual growth rate of 3.2% in the country, there is need to improve the agricultural system in Nigeria (Adebisi-Adelani, Olajide-Taiwo, Adeoye and Olajide-Taiwo, 2011; CBN, 2011).

According  to  Akintoye,  Adekunle  and  Kintomo  (2011),  agriculture  is  the  bedrock of the Nigerian economy. What must be made clear is that crop agriculture, with limited support already supplies a significant share of food, especially fresh vegetables. Fresh vegetables add to the important component of diversified diets which improve dietary quality. They could be boiled, fried or cooked and consumed in different forms. In Nigeria, vegetables are usually boiled in water resulting in soups and sauces, which are relished. They also serve as soup thickeners and are one of the most expensive items in the food basket of the nation (Schippers, 2000; Egbuna, 2009; Kennedy, Razes, Ballard and Dop, 2011).

In Nigeria, the term vegetable is frequently used to refer to leafy plants whose succulent stem portions, petioles and leaves are mainly cooked and eaten in soups and stews (Okunlola, 2009; Aju and Popoola, 2010). Vegetables are among the major dietary intake in our everyday life. Vegetables, in their fresh form, contain high percentage (75% or more) of water, and 25% or less of dry matter (Ajayi and  Nwalieji,  2010).  They  include  edible  leaves  of  different  colours  with  less  starch  content. Vegetables are  rich  sources of  many  essential  micronutrients and  are  loaded  with  health-related phytochemicals and anti-oxidants (De la Rosa, Alvarez-Parrilla and Gonzalez-Aguilar, 2010).

They are of great nutritive value and are important sources of vitamins, minerals, proteins, carbohydrates and dietary fibres, thus essential components of the human diet (Aju and Popoola, 2010; Uguru, 2011). Some roots and tubers are consumed in the case of carrots as vegetable, fresh pods as in vegetable cowpea; immature fruits as in Okra; ripe fruits as in tomato; tender leaves as in green; young shoot as in Ora; immature flower as in cauliflower; and whole shoots as in elephant grass or in bulbs for e.g. onions to improve the vitamin and mineral intake in the body (Agbugba and Nwagbo, 2006; Okoli, 2009; Mukherjee, 2011).

According to Farinde, Owolarafe and Ogungbemi (2007) vegetables such as Okra are suitable for medicinal and industrial applications and have medically found application as a plasma replacement or blood volume expander. In other words, they are generally regarded as very essential plant having high moisture content in fresh forms with considerable quantities of vitamins A, B, C, D, E and K, which helps to  protect  the  body against  diseases and  contributes in  no  small  measures to  good  health (Alderson, Herman and Mitchell, 2012). They are part of high perishable good commodity, which is collectively known as horticultural food products. Olericulture is a branch of horticulture which studies vegetables. They comprise approximately 25% of the major food commodities in our country as other less developed countries (Food and Agricultural Organization, 2011).

Vegetables are among the living things and hence carry out their physiological function of respiration, thereby absorbing and releasing gases and other materials from and to their environment (Idah, Ajisegiri and Yisa, 2007). Vegetables have tremendous potentials to address poverty alleviation and nutritional security because they are affordable and easily available, easy to grow and require minimum production inputs (Nwauwa and Omonona, 2010). According to Pasquini and Young (2009), the nutritional security of a country can be achieved only when enough vegetables are consumed. However, this study will focus on some selected African Indigenous Vegetables (AIVs), with special interest on leafy and fruit vegetable classes, which are Telfairia (Ugu or fluted pumpkin) and Abelmoschus (Okra).

According to Okunlola (2009), vegetables are among the most important and widely cultivated food and income generating crop in many parts of Africa. They are cultivated extensively by both small scale farmers and large scale enterprises. They can give high yield per unit area of land and hence generate high income for the vegetable farmers. Worldwide production of vegetable such as Okra is estimated at six million tonnes per year. In West Africa, it is estimated at 500,000 to 600,000 tonnes per year (Burkill, 1997; Agbugba, Nweze, Achike and Obi, 2013). In Nigeria, enormous quantities of vegetables are produced, and staggering figures are sometimes given as estimated annual production. For example Idah et al. (2007) quoted figures like 3.8 million tonnes of onions and 6 million tonnes of tomatoes as annual production levels for some vegetables, which are really large quantities of food crops. The amount of vegetable produce available to the consumer by the marketer is more important, rather than the level of vegetable  production,  given  the  costs  incurred  in  their  marketing,  items  of  transportation  from producing areas and the quantities that  perish during transportation (Erinle, 1989; Egbuna, 2009; Muhanji, Roothaert, Webo and Mwangi, 2011). Consequently, marketing of vegetable is complex and challenging  because of their  special characteristics which  include:  perishability,  seasonality,  high economic value and standardization requirement (International Centre for Advanced Mediterranean Agronomic Studies, 2008; Adebisi-Adelani et al., 2011).

There has been concern over the years regarding the efficiency of vegetable marketing. Nwachukwu and Onyenweaku (2007) noted that economic efficiency depends on the market forces, which in turn are influenced by the sectoral and marketing polices of a country. The marketing of vegetable is complex due to its perishable and seasonal nature, as well as its bulkiness. Vegetable marketing is a very vital component of the vegetable industry and there is therefore, a need to move from undeveloped marketing of vegetables to a more viable way of marketing them to specified requirements of variety, size, colour, flavour, moisture content, packaging and seasonality (Ngugi, Gitau and Nyoro, 2006; Hosmani, 2007).

The marketing channel of vegetable crops is an important part of its cost, and its location to the market may shorten the path of distribution from producers to consumers and makes the marketing process simple and efficient (Egbuna, 2009). Efficiency in the marketing of vegetables is borne on the platter of an efficient market information provision. In the marketing of vegetable, farmers as well as marketers determine the flow of information from the farm to the market place. The co-movement of prices to the smooth transmission of price signals and information across spatially separated markets is referred to as market integration (Oladapo and Momoh, 2007). In order words, market integration is enhanced by the provision of transport infrastructure, provision of adequate formal marketing information and  standardization of weights and  measures in the  marketing system (Dittoh, 1994; Oladapo, 2004; Mari, 2009).

In Nigeria, there are two distinct seasons for vegetable and include the peak (rainy) and the lean (dry or harmattan) seasons. In rainy seasons, they are produced in large quantities much more than what the local populace can consume. (Farinde et al., 2007). Marketing of vegetables during the rainy season when virtually all the crops mature at about the same time, create glut in the market due to the fact that many of the farmers and vegetable sellers do not have storage facilities for storage of their products, thus leading to very low returns of crops per hectare. In the dry season, there is high economic return per hectare of vegetables because the number of vegetable marketers engaged in marketing activities is reduced (Ojo, Connaughton, Kintomo, Olajide-Taiwo and Afolayan, 2011). In Nigeria, research has also shown that the yield of vegetables per hectare during the dry season when there is abundant sunshine for photosynthesis and regulated water supply is about 300% of that during the rainy season (Aladetoyinbo, 2001; Okunlola, 2009; Adebisi-Adelani et al., 2011).

The growth and sustainability of dry season system of vegetable marketing is necessary in Nigeria, and many other developing nations to improve food security (Ayoola, Saka and Lawal, 2009). Moreso,  Nwanguma, Akinfasoye,  Aminu-Taiwo  and  Akanbi (2010)  pointed  out  that  information generated from farming communities in a South eastern state in Nigeria indicated that dry season vegetable business with supplementary irrigation especially for Okra and Ugu significantly contributed in improving the economic well-being of rural farmers. This therefore, supports that the marketing system of vegetables during the dry season is invaluable. This is because in times of drought, during the dry season or failure of most upland crops, dry season cultivation becomes the only alternative source of vegetable supply. Vegetable market reflects the success of dry season vegetable cultivation as fresh vegetables abound everywhere to the amazement of the buyers and joy of the farmers (Ibrahim and Omoteosho, 2009; Adebisi-Adelani et al., 2011).

Due to the important role vegetables play in the human diet, economy and environment, there is a universal recognition to develop dry season system of vegetable marketing in Nigeria (Okunlola, 2009). The marketing of dry season vegetable is gradually developing as many people develop interest to engage in vegetable enterprise especially as market intermediaries and thereby, assist in the process of distribution. This activity will provide a good source of income for vegetable marketers, and will also ensure a ready market for the produce most especially during this period.

1.2       Statement of the Problem

With the global increase in the awareness and knowledge of the importance of the vegetable component in the human diet, the forces of demand exceed the forces of supply of vegetable during the dry season (Nwachukwu and Onyenweaku, 2007). This is especially so because output is relatively lower during this season, due to environmental constraints on some production resources like water and high incidence of pests and diseases among others. Also, marketing activities of vegetables are much reduced during the harmattan season due to a decline in production leading to low supply and high demand for vegetables (Okunlola, 2009). According to Ojo et al., (2011), the demand for dry season vegetable  is  in  excess  of  supply,  even  though  gluts  occur  in  the  production  areas  during  peak production seasons, thereby hiking the price and making it unavailable and unaffordable to the average buyer. This supports the statement that vegetable supply cannot keep up with the existing demand (Ezeh and Mbanasor, 2004).

The effect of poor infrastructure, technology and manpower development gives rise to a lot of distributional problem.  Transportation to  rural  areas  can  pose  a  problem,  especially  where  most production activities of vegetable takes place. Oyeniran (1988) and Adugna (2009) noted that losses are recorded as high as 50% in vegetables between rural production and urban consumption as a result of poor infrastructure and other structural constraints characterizing the marketing system. Other infrastructural problems include: lack of market, poor storage and poor packaging of vegetables for sale in the market. As a result of this, there will be high economic losses incurred by its marketers who are involved in dry season vegetable marketing (Okunlola, 2009).

The measurement as well as the pricing of vegetables in the market poses a constraint due to lack of a standard or uniform measure used in the sale of vegetable. Enete (1999) noted that marketing system performs vital functions, one of which is the allocation of resources through the pricing system. Prices are important signals which producers and marketers respond to easily in the economic system (International Institute for Food and Policy Research Institute, 2008). The price of vegetables determine the income and economic welfare of the vegetable business households, which in turn influence their investment and production decisions, as well as the transactions that go on during the marketing process.  A  study on  dry  season  vegetable  enterprise  conducted  in  Southwest  Nigeria  noted that measurement/pricing problem has a negative effect on the margin of the marketing participants. In other words, there will be difficulty in having a uniform price per weight of the vegetable products, which in turn affects their marketing enterprise (Okunlola, 2009; Adebisi-Adelani et al., 2011).

As has been previously noted, dry season vegetable marketing is beset with a lot of challenges and constitute a bottleneck to the fresh flow of vegetables in the market due to poor flow or movement of market information amongst vegetable marketers (Olasantan, 1996). It therefore, hinders the traders from making better decisions pertaining to the viability of seasonal storage of vegetables. Damages occur and are relatively higher when the vegetables are not bought due to lack of market information (Lyatuum,  Msuta,  Sakala,  Marope,  Safi  and  Lebotse,  2009).  In  order  words,  efficient  market information will provide accurate market data when analyzed. It will also give positive benefits to farmers, marketing intermediaries and policy makers (Andrew, 1997). Market integration during the dry season period will be measured so as to confirm the movement of price and market information within and between markets.

In spite of the problems in vegetable marketing, little research has been done on vegetables marketing in South-East Nigeria. Dittoh (1994), showed from his study on market integration in dry season vegetables marketing in Northern Nigeria, that there is poor flow of information in the channel of marketing and that there is need to develop the marketing processes in the enterprise. Okoh and Egbon (2005) reported in their study on integrating the Nigeria’s rural and urban foodstuff markets that there are too many intermediaries and high cost of transportation, as well as sources and validity of price data. An important observation is that while markets have characteristics of perfect competition, the price correlation results showed that they are not integrated. A study on marketing of vegetables will bridge these gaps by providing the necessary data required for planning and policy formulation. There is therefore, need to conduct a study on the marketing of dry season vegetables. This will also enable us to know the relationship amongst the profitability, marketing channels, their  marketing margins, extent of constraint effect on the margins, structure as well as conduct of the vegetables market, their price causality and the degrees of integration in the vegetables market during the dry season. Outputs from this study will provide information that  would efficiently assist  dry season vegetable market dealers in marketing of vegetables during dry season period in Nigeria.

1.3      Objectives of the Study

The broad objective of this study is to analyse the marketing of dry season vegetables in South- East Nigeria.

The specific objectives are to:

i.    describe the marketing channel and analyse the structure and conduct of dry season vegetables market in South-East Nigeria;

ii.    determine the marketing margins of dry season vegetables marketers in the study area;

iii.   determine the effects of the constraints on the margins of dry season vegetables marketers in the study area;

iv.   determine the price causality in the marketers’ prices of dry season vegetables in the study area;

v.    measure the extent of market integration amongst dry season vegetables markets in the study area;

vi.    make recommendations based on the findings.

1.4      Research Hypotheses

The following three null hypotheses were tested:

i.    There is no bilateral price causality between the farmgate and wholesalers’ price, as well as between wholesale and retailers’ price of dry season vegetables.

iii.   Dry season vegetables markets are not integrated.

1.5      Justification of the Study

In order to design appropriate polices that will bring about an efficient marketing of dry season vegetable, there is need to carry out an indebt study of vegetable marketing in Nigeria. This will greatly enable policy makers to identify constraints and potential areas for its improvement considering the vegetable need in our nation.

Dry season vegetable marketing is of great benefit to Nigeria as it enhances self sufficiency, thereby assisting in the availability of vegetables throughout the seasons of the year. Moreso, research efforts have shown that the yield of vegetable crops per hectare during the dry season when there is abundant sunshine for photosynthesis and regulated water supply is about 300% of that during the rainy season (Aladetoyinbo, 2001; Okunlola, 2009; Adebisi-Adelani et al., 2011). Hence, this research is directed at providing information that would assist dry season vegetable market dealers on how best to attain efficiency  in the  marketing of their  vegetables in South-East Nigeria. It  will also  provide recommendations that will enhance the marketing of vegetable and other food marketing systems during the dry season Most importantly, dry season system of vegetable marketing is a likely intervention strategy for the poor to earn extra income and grow their own food during the dry season. There is still need to highlight the potentials and constraints to its development, so as to capitalize on the potentials and integrate them into the system in a more viable and sustainable way.

It is hoped that the findings of the study will be useful to the researchers, farmers, marketers, policy makers to determine their needs/gaps in order to reach their stated goals. Government and policy makers will also benefit from the findings of this study by utilizing information from the study to address the problems of dry season system of vegetable marketing. This will be used as checks and balances by policy makers and academics in designing subsequent ways to make effective, as well as efficient processes involved in dry season marketing of vegetables in the study area.

The findings of this study can help to highlight the links between prospective dry season vegetable farmers, policy makers and researchers to identify and analyse new ways and strategies of encouraging the market for mutual cooperation and integration for an effective vegetable marketing system during the dry season period. Furthermore, this study will complement other related studies conducted to guide appropriate policy options for improved performance of marketing of dry season vegetables in the country.

1.6      Limitations of the Study

The major limitation in conducting this study was based on finance, especially in mobilizing research assistants to ensure their guidance and documentation of accurate data at the various data collection centres. Several visits were paid to these centres during the period. Moreso, transportation fare within the study area was very high owing to the deplorable state of the roads especially during this season.

In terms of scope, the study focused on three South eastern states of the country. Another limitation  is  that  of reluctance from some of the  respondents in  collecting  data,  due  to  lack  of understanding, illiteracy and unfriendly attitude which they exhibited. Furthermore, there was difficulty locating the respondents who were mainly wholesalers in some of the sampled markets in the study area, due to long distance travelled by the researcher to the location coupled with their early morning schedule of selling their products. The questions posed were rephrased from time to time in order to verify accuracy of information being supplied. In spite of these shortcomings, the results of the study represented a good approximation of the state of dry season vegetable marketing in the study area.

₦5,000.00 – DOWNLOAD FULL PROJECT DOWNLOAD FULL PROJECT Added to cart

---

---

---

---

Related Project Topics :