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.

TABLE OF CONTENTS

Title Page i

Certification ii

Dedication iii

Acknowledgement iv

List of Tables ix

List of Figures x

Abstract xi

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 4

1.3 Objectives of the Study 6

1.4 Hypotheses of the Study 7

1.5 Justification of the Study 7

1.6 Scope and Limitations of the Study 8

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 The Concept of Agricultural Marketing 10

2.2 Marketing Performance 12

2.3 Marketing Channels of Fruits and Vegetables 14

2.4 The Role of Middlemen in Marketing of Fruits and Vegetables in Nigeria 16

2.5 Market Structure 18

2.6 Market Conducts 20

2.7 Marketing Efficiency 21

2.8 Marketing Margin 22

2.9 Costs and Returns of Watermelon Marketing 23

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2.10 Determinants of Net Income in Watermelon Marketing 25

2.11 Constraints to Marketing of Fruits and Vegetables 28

2.12 Theoretical Framework 33

2.12.1 Agricultural marketing systems efficiency theory 34

2.12.2 Market structure-conduct-performance theory 34

2.12.3 Commodity chain theory 35

2.12.4 Transactions cost theory 35

2.12.5 Theory of supply 36

2.13 Analytical Framework 37

2.13.1 Multiple regression analysis 38

2.13.2 Gini coefficient model 39

2.13.3 Likert type scale rating technique (Mean score) 40

2.13.4 Marketing margin model 42

2.13.5 Net income analysis 43

CHAPTER THREE: METHODOLOGY

3.1 The Study Area 45

3.2 Sampling Procedure 46

3.3 Data Collection 46

3.3.1 Validity and reliability of instrument 47

3.4 Data Analysis 47

3.4.1 Gini coefficient model 47

3.4.2 Marketing margin model 48

3.4.3 Marketing efficiency index 49

3.4.4 Net Income analysis 49

3.4.5 Multiple regression analysis 50

3.4.6 Likert scale rating technique 52

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3.5 Hypotheses Testing 52

CHAPTER FOUR: RESULTS AND DISCUSSION

4.1 Socio-economic Characteristics of Watermelon marketers 53

4.2 Analysis of Marketing Channels of Watermelon 57

4.3 Description of Structure of Watermelon Market 58

4.4 Description of Conducts of Watermelon Market 61

4.5 Analysis of Net Marketing Returns of Watermelon Marketers 64

4.6 Analysis of Marketing Margin and Efficiency of Watermelon Marketers 65

4.7 Determinants of Net Marketing Income of Watermelon Marketing 67

4.8 Constraints Militating Against Marketing of Watermelon 71

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary 74

5.2 Conclusion 76

5.3 Recommendations 77

5.4 Contributions to Knowledge 78

5.5 Suggestions for Further Studies 78

REFERENCES 71

APPENDIX