ANALYSIS OF PROFITABILITY OF TOMATO (Lycopersicum spp) MARKETING AMONG RURAL WOMEN IN OLAMABORO LOCAL GOVERNMENT AREA OF KOGI STATE-NIGERIA

Abstract

This study assessed the constraints to tomato marketing among rural women in Olamaboro Local Government Area of Kogi State, Nigeria. Specifically, the study looked at the cost and returns of tomato marketing; ascertained the effects of tomato marketers’ socioeconomic variables on their income; and identified major constraints to tomato marketing. These objectives were delineated to address the problems of tomato perishability due to absence of storage facilities and paucity of market information among the marketers. A purposive random sampling technique was used to select 120 respondents for the study. Primary data obtained through structured questionnaire were analyzed using descriptive statistics, gross margin model, Ordinary Least Square (OLS) multiple regression model, and mean score from Likert type of scale. Findings of this study revealed that 65.1% of rural women involved in tomato marketing were in their active age of 32 years with a mean household size of 7 members, and an average marketing experience of 11 years. Most (73.3%) had no extension contacts. The gross margin analysis indicated a gross margin from tomato marketing per month of N54, 745 with a benefit cost ratio of N1.90k. Estimates of the OLS revealed that the semi-log was chosen as the lead equation due to its R2 of 0.877which implied that about 88% of the variation in the changes in income from tomato marketing is influenced by the independent variables considered. The results showed that years of schooling, household size, and marketing experience positively influenced the income from tomato marketing at 1% level of significance. Major constraints faced by women involved in tomato marketing in the area included high perishability of tomatoes (M = 3.4), poor storage facilities (M= 3.4), disease and pest infestation (M = 3.3), high transportation cost and low price of tomato (M = 3.2 respectively), high labour cost and lack of operational cost constituted (M = 3.1 respectively). The study therefore recommends that tomato marketers should expand their scale of operation as this will enable them enjoy economies of scale with positive effects on increased income, while both the Kogi State and Federal governments should improve rural infrastructure to address marketers’ associated problems such as storage facilities, good road networks, markets and power supply