PERFORMANCE OF WATERMELON MARKETING IN ENUGU STATE NIGERIA

ABSTRACT

The study analyzed the performance of watermelon marketing in Enugu state, Nigeria. Watermelon has long been regarded as a minor crop in Nigeria and thus, has attracted little marketing research attention,  in  comparison  to  other  major  food  and  cash  crops.  The  specific  objectives  were  to: describe  the socio-economic  characteristics  of watermelon  marketers  (wholesalers  and retailers); describe the marketing channels of watermelon; examine the structure and conducts of watermelon market; determine the costs and returns of watermelon marketing; determine the marketing margin and market efficiency of market participants;  determine  the factors influencing  the net marketing returns  of the marketers  and  identify  constraints  to watermelon  marketing.  Multistage  sampling technique was employed in selecting eight watermelon markets based on the volume of watermelon traded in  the markets.  Primary data were collected  from 160 respondents  comprising  96 retailers and 64 wholesalers with the aid of well structured questionnaire. Data collected were analyzed using descriptive   statistics,   Gini   coefficient,   net   marketing   income,   percentage   marketing   margin, marketing   efficiency   index  and  multiple   regression   model.   Results   showed   that   watermelon marketing was dominated by the married (76.25%), literates (97.5%) and females (78.13%) with the mean age and marketing experience of 47 and seven years respectively. Four marketing channels of watermelon  were  identified.  Though  watermelon  market  was  characterized  by many  buyers and sellers  with  little  or  no  restrictions  to  entry  and  exit,  the  high  values  of  Gini  coefficient  for wholesalers (0.658) and retailers (0.729) indicated high concentration of watermelon in the hands of few  marketers  and  high  income  inequalities  in  the  distribution  of  sales  income  amongst  them. Majority  of  wholesalers  (98.4%)  obtained  their  products  in heaps  of  hundred  directly  from  the producers,   while  majority  of  the  retailers  (92.2%)  bought  their  products  per  fruit  or  ball  of watermelon  directly  from the  wholesalers.  Fixing of prices  after deducting  the amount  spent on purchases and other costs (98.13%) and settling for a price after haggling with buyers (80.63%) were more preferred  pricing methods  used by the watermelon  marketers.  The result of net marketing income per month in kilogram showed that the enterprise was viable; watermelon  wholesalers  on the average received ₦1,668,292.13 while the retailers received ₦28,701.87. The marketing margins of  the  marketers  were  positive,  the  mean  percentage  marketing  margins  for  wholesalers  and retailers were 45.49% and 31.5% respectively. Though watermelon marketing was profitable, further analysis showed that it was highly inefficient.  The marketing  efficiency of  wholesaler  and retailers were 44.83% and 27.97% respectively. The determinants of wholesaler’s net marketing income were product price (0.581) and transportation cost (-2.609), while product price (1.501), educational level (-0.584), storage cost (-0.131), packaging cost (-0.077) and market information (0.057) significantly influenced  retailer’s  net  marketing  income.  High  perishability  of  watermelon  (spoilage),  cost  of watermelon,   high   transportation  cost,   lack  of  credit  facilities,   price  fluctuation   and  lack  of preservation  facilities  were  identified  as  the  major  constraints  militating  against  the  efficient marketing of watermelon.  It is recommended  that government  should provide loans and modern storage  facilities  to enhance  the capital  base  of the marketers  and also to reduce  losses  due  to product deterioration in storage.

CHAPTER ONE

INTRODUCTION

1.1      Background Information

Fruits and vegetables are of great nutritional value (Idah, Ajisegiri & Yisa,  2007). They are important sources of vitamins and minerals, thus, essential components of human diet. Vegetable production forms a substantial percentage  (about 25%) of  the major food crops cultivated in the tropics and so it is the source of livelihood for a considerable section of the population (Kra & Bani, 1998).

Watermelon (Citrullus lanatus) is one of the world’s most important vegetables as the crop  is  grown  both  for  its  fruit  and  the  vegetative  parts  which  are  highly  nutritious (Schippers,  2000).  It  is  a  member  of  the  cucurbit  family  commonly  referred  to  as Cucurbitaceae  (Huh,  Solmaz  &  Sari,  2008),  a warm-season  crop  related  to  cantaloupe, squash,  cucumber  and  pumpkin  (Georage,  Darbie  &  Kelley,  2000).  It  is  an  important horticultural crop, mostly known for its sweet and juicy fruit, grown commercially in areas with long frost-free warm climates all over the world (Robinson & Decker-Walters,  1997; Jeffrey, 2001; Prohens & Nuez, 2008).  Baba, Yelwa and Sanchi (2014) as well as Adeoye, Usman and Badmus (2011) reported that watermelon global consumption is greater than that of any other cucurbit. It accounts for 6.8% of the world area devoted to vegetable production (Guner & Wehner, 2004).

According to Onyemauwa (2010) watermelon is consumed throughout the world and it is mainly cultivated in the tropical countries. China is the leading country in the production of watermelon followed by Turkey, Brazil, United States, Egypt and Russia Federation (Huh, Solmaz & Sari, 2008; FAOSTAT, 2008). In Africa, watermelon accounted for 5.4% of the harvested area devoted to vegetable production in 2008, and  this contributed  to the world watermelon production with 4.6% of 99,194,223 metric tons (FAOSTAT, 2008). In Nigeria,

the crop  has  a wide distribution  as a garden  crop,  while as a commercial  vegetable;  its cultivation is confined to the drier savanna region of Nigeria (Daudu, Ajayi & Ndor, 2008). Nigeria produced more watermelons in 2011 (139,223 tons) than Kenya which is the leading fresh produce African exporter, with 66,196 tons and South Africa that produced 77,993, tons (Alfa-nla, 2012). The largest production of the crop comes from the Northern part of Nigeria, where the suitable agro ecology is found. However, a reasonable quantity of the crop could still be grown in other agro ecologies with  intensive management and is still economically feasible (Bosede, Olubunmi & Balogun, 2012).

Watermelon   reaches   consumers   through   the   marketing   system.   Marketing   is concerned  with all stages of operation, which facilitate the movement of the  commodities from the farms to the consumers. Marketing has economic value because it gives form, time and place utility to products and services (Asogwa & Okwoche, 2012). Therefore, increase in marketing activity of watermelon would enhance the provision of more and better produce at low price to increased number of people which would  enable marketers to generate more income and increase welfare.

The marketing channel of watermelon is an important part of its cost, and its location to the market may shorten the path of the distribution  from producers to  consumers  and makes  the  marketing  process  simple  and  efficient  (Egbuna,  2009).   Efficiency  in  the marketing of watermelon is borne on the platter of an efficient market information provision (Oguntola,   2006).  In  fruit  marketing,   farmers  and  marketers   determine   the  flow  of information from the farm to the market place and this consequently influences the market performance.

Market performance is an appraisal of the process of marketing and how successful its aims  and  objectives  are  accomplished  (Eronmwon,  Alufohai  & Ada-Okungbowa,  2014). Kohls and Uhl (1985) defined market performance in terms of how effectively and efficiently the marketing systems perform what the society and the market participants expect of it.  It is often a complex notion mainly because of the multiple and often conflicting goals  for the marketing system. The market   performance  is determined  by the structure  (numbers and sizes of firms, degree of product differentiation, and conditions of entry) and conducts (firms’ price,  product,  and  promotional  strategies)  (Kohls  &  Uhl,  1998).  Profit  and  marketing efficiency are most frequently used measure of market performance (Olukosi, Isitor & Ode,

2005). Marketing efficiency shows the degree of market performance. Adegeye and Dittoh (1985) defined agricultural marketing efficiency as the movement of crops and livestock from the producers to consumers at the lowest possible cost which is consistent with the provision of the services consumers’ desire. Improved efficiency is a common goal of farmers, food marketing  firms,  consumers,  and  society.  Efficient  marketing  plays  a crucial  role  in an economy. This role becomes more evident in areas where there are high rate of urbanization (Olukosi et al., 2005).

Ajewole (2015) reported that watermelon is highly relished as a fresh fruit in different parts of the world because of its thirst-quenching attribute in addition to many other identified nutritional values and advantages. The consumption of the commodity in the recent times has witnessed remarkable development as it cuts across all socio economic classes. In the study by Onyemauwa (2010), watermelon was found to be   good for all human consumption and livestock needs as it contains most of the basic daily nutritional requirements of the body and other essential nutrients that prevent human health problems like cancer, stroke, high blood pressure, heart attack and other cardiovascular disease.  Watermelon could be eaten raw when it is fresh after being washed and sliced into bits. Its nutritional values include low calories, lycopene which is an antioxidant that prevents cancer and other diseases, vitamin A, vitamin C,  protein,  carbohydrate,  fibre,  potassium,  calcium,  iron,  fats  and  up  to  92%  of  water (Onyemauwa, 2010). These are all necessary for good health and development of human and livestock needs. Hence, it is referred to as “the chief of the world’s luxuries and king over all fruits of the earth” (United States Department of Agriculture, 1998).

1.2      Statement of the Problem

Fruits  and  vegetables  such  as  watermelon  are  important  sources  of vitamins  and minerals and are thus essential components of the human diet (Egharevba, 1995). The high demand for this vegetable fruit is not met in the Southern part of Nigeria due to unfavourable climatic condition (Okonmah, Agbogidi & Nwagu, 2011). Consequent upon this, there has been  increased  trade  and  commerce  activities  surrounding  these  commodities.  Efficient marketing of watermelon is important to ensure its all-year round availability due to its high demand by consumers (Ekerete & Asa, 2014).

The potentials  of watermelon  as a cash generating  crop  is significant  for  farmers especially those residing near the urban areas. Recent reports indicate that exotic vegetables production generally generate higher profit, provide more employment  and  income to the farmers  than  those  of  indigenous  vegetables  (Isibor  &  Ugwumba,  2014).  According  to Oguntola (2006), watermelon is the most preferred among five other exotic vegetables such as cantaloupe, squash, cucumber and pumpkin examined in Ibadan Metropolis of Oyo State, Nigeria.  Dovie,  Witkowski  and Shackleton (2003)  noted  that trading and consumption  of watermelon is vital to livelihood and entrenchment of food security in some parts of South Africa. Trevor (2008), in his study in Northern Ghana also noted that watermelon serves as an  important  source  of  revenue  to  farmers  especially  in  times  of  unfavourable  weather conditions since it is able to withstand harsh weather conditions as compared to other crops. In Nigeria, Isibor and Ugwumba (2014) reported that watermelon marketing is a source of employment and income generation for many people especially women and adolescents.

In spite of its importance globally, watermelon has its peculiarities and challenges in its marketing. In India, marketing of watermelon is confronted with issues like  problem of transportation,  the use of numerous  agents  and mobile  traders  and  lack of an  organized marketing  system  among others  (Varmudy,  2012). Food  and Agriculture  Organization  of United  Nations  (FAO)  (2011)  and Tuffour  and Dokurugu  (2015)  asserted  that like other agricultural  goods in many African countries,  fruits,  watermelon  inclusive,  usually rot in farms due to either poor or unavailable transport facilities. Marketing system in Nigeria is faced with perennial problems of inefficiency and ineffectiveness due to inadequate market infrastructural  facilities,  transportation  and  pricing system  (Onyemauwa,  2010; Adakaren, Ahmadu & Chidebelu, 2012). Adugna (2009) noted that as high as 30% losses in vegetables are recorded during transportation from point of production to point of consumption.

The consumption of exotic vegetable including watermelon has been on the increase but the cost of executing various marketing functions have made the price to increase more than necessary and has made some consumers to relent in its consumption (Nya, Okorie & Eka, 2010). This is partly because most of the  watermelons marketed in Southern parts of Nigeria  are  usually  produced  in  the  rural  areas  of  Northern  Nigeria.  The  quantity  of watermelon available for consumption and the price paid by the consumer depends on how efficient the marketing system of watermelon functions. Watermelon marketers experience lots of problem in trying to meet demand for the vegetable due to fluctuation in supply. It is a perishable agricultural produce and cannot be stored over a long period of time.

Watermelon  has  long  been  regarded  as  a  minor  crop  in  Nigeria  and  thus,  has attracted little marketing research attention, in comparison to other major food crops and cash crops. Several studies have been conducted with respect to watermelon production  in Africa, of which some focused on the economic analysis of its production based system (Adeoye et al., 2011), income and factor analysis of watermelon (Oladele, 2015), traditional knowledge with respect to the cultivation and uses of watermelon in Mozambique (Munisse, Andersen, Jensen  &  Christiansen,  2011).  Though  Onyemauwa   (2010),  Kainga  (2013),  Isibor  & Ugwumba (2014) and Olumide (2015) concentrated on the marketing margins and marketing efficiencies of watermelon in their studies in urban areas of South-West and South-South of Nigeria, available literatures showed that limited researches were conducted along the costs, market margin, marketing efficiency, market structure and conducts of watermelon in Enugu State.

Economic   Research   Service   (1994)  reported  that  in  terms  of  price,  there   is considerable variability in watermelon prices within the year due mostly to seasonal changes in the volume of production. The distribution and availability of watermelon in Enugu State tends to be inadequate and inefficient. The product is rarely produced in the study area and its external influx could pose high cost of marketing on the product and implicitly the price of watermelon very exorbitant. In view of the rising demand for watermelon in the State in the face of inefficient marketing (FAO, 1997), therefore, it is pertinent and relevant to analyze the performance  of the watermelon  marketing in  Enugu State, Nigeria. Consequently,  the following research questions have remained unanswered:

a)  What are the socio-economic characteristics of watermelon marketers?

b)  What are the marketing channels of watermelon?

c)  What are the market structure and conducts of watermelon market in the study area?

d)  What are the net marketing returns of market participants?

e)  How efficient is watermelon market in the study area?

f)   What are the variables that determine the net returns in the market? and

g)  What are the constraints associated with watermelon marketing in the study area?

1.3      Objectives of the Study

The broad objective  of this study was to analyze  the performance  of  watermelon marketing in Enugu State, Nigeria.

The study addressed the following specific objectives:

i.         describe the socio-economic characteristics of watermelon marketers (wholesalers and retailers);

ii.        describe marketing channels of watermelon;

iii.       examine the market structure and conducts of watermelon marketing;

iv.       determine the costs and returns of watermelon marketing;

v.        determine marketing margins and marketing efficiency of watermelon marketers;

vi.       evaluate the factors influencing net income of watermelon marketing; and vii.      identify constraints militating against marketing of watermelon.

1.4      Hypotheses of the Study

i.         Socio-economic  and institutional  factors do not significantly  influence  net  income from marketing of watermelon amongst wholesalers.

ii.        Socio-economic  and institutional  factors do not significantly  influence  net  income from marketing of watermelon amongst retailers.

1.5      Justification of the Study

Watermelon  marketing has a large potential to enhance  agribusiness  development, generate  income and employment  opportunities  that will lead to  significant  impact in the rural sector particularly for households in the non producing areas like Enugu State. Efficient performance of watermelon marketing is of great  importance in Nigeria as it enhances self sufficiency, thereby assisting in the availability of watermelon on and off seasons.

More so, watermelon marketing in the State is a likely intervention strategy for the poor to earn extra income and source of livelihood especially for those living in peri-urban areas. Hence, this research is directed at providing information that would assist watermelon marketers on how best to attain efficiency in the marketing of the vegetable in the study area. It will also provide information  that will enhance  the  marketing of fruits and other food marketing systems that are not indigenous or produced in South-East in general and Enugu

State in particular. Marketers of watermelons and other fruits and vegetable enterprises will no doubt find the findings of this study useful to strategize properly for effective marketing of their commodities and minimizing marketing costs and constraints.

It is hoped that the findings of the study will be of immense benefit to researchers and students  who  are  interested  in  research  on  marketing  of  tropical  vegetables  and  fruits. Government and policy makers will also benefit from the findings of this study by utilizing information from the study to address the problems of marketing of vegetable and fruits like watermelon in non-producing parts of the country. International Donors such as International Fund for Agriculture Development (IFAD), FAO, World  Bank and other government  and Non-government  organizations  interested  in gender  mainstreaming  and poverty alleviation will equally benefit from the findings of this  study, as it will give information about the gender dimension of watermelon marketers in the State as well as assessment of the viability of watermelon marketing for poverty alleviation and food security.

Finally, the findings of this study will complement other related studies conducted to guide appropriate policy options for improved performance of marketing of watermelon in Enugu State and other non watermelon producing parts of Nigeria.

1.6      Scope and Limitations of the Study

The study focused  on eight major  fruit and  vegetable  markets  in the study  area. Specifically, watermelon marketers in Orie Orba, Ogige market, Eke Agbani, Ikpa market, Obollo Afor market, New Relief market, Ogbete market and Orie Awgu. In the course of the study, many challenges were encountered ranging from the unwillingness of the respondents to co-operate and give the required information without much conviction and persuasions that the researcher was not a government official and that information given would only be used for   research   purposes.   Other   challenges   included   low   record   keeping,   no   standard measurement,  financial and time  constraints.  However,  valid information were sourced  to achieve the objectives of this study through enumerators and repeated follow up calls. Again, due to  lack of standard  measurement,  concerted  efforts  were made by the  researcher  in measuring with standardized measures by direct weighing. In spite of these shortcomings, the results of the study represented a good approximation of market performance of watermelon in the study area.

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

---

---

---

---

Related Project Topics :