Open AccessProfitability Analysis of Fresh Tomato Retail Marketing In Some Major Markets Of Kano State, Nigeria
Author(s) -
Umar Shehu Umar,
Abdu Muhammad Yaro
Publication year - 2017
Publication title -
international journal of research in science
Language(s) - English
Resource type - Journals
ISSN - 2412-4389
DOI - 10.24178/ijrs.2017.3.4.13
Subject(s) - profitability index , business , marketing , profit margin , profit (economics) , margin (machine learning) , agriculture , gross margin , economics , finance , machine learning , computer science , microeconomics , ecology , biology
Small scale farmers in Nigeria can’t do without tomato production because of its special attributes and quick cash generation as tomato is being viewed as cash crop, despites it perishable and none storable nature. The study examined the profitability of fresh tomato retail marketing in major markets of Kano State. A total of 149 respondents were randomly selected from the four market sites selected purposively due to the high concentration of continuous retail marketing throughout the year, the market sites are; Tarauni, ‘Yan Kaba, Garin Dau and Wudil Market. Information was collected using structured questionnaire. Deconstructed marketing margin was used for the analysis, the results revealed the marketing margin to be N452.6 and –N374.5 per basket at the peak and the off season respectively. Transportation cost accounts for about 35% and 40% of the total marketing cost for on and off season respectively. The study concluded that the retail marketing of fresh tomato is generally profitable and recommends that fresh tomato retail marketers should imbibe the idea of collective purchase in order to minimize transportation cost for maximum profit, it further recommends agricultural scientists to find ways of reducing postharvest losses at all levels of marketing so as to make the price of the commodity relatively stable throughout the year to ensure sustainability in the business.