Abstract
This study analyzes the effect of price fluctuation(s) on the retail marketing of tomato in Argungu Local Government Area of selected markets, Oja Oba (Kings Market) and Orita-merin market. Primary data were obtained from administration of a well-constructed questionnaire and Secondary data on tomato price spanning from 2009 – 2013 were obtained from Kebbi State Agricultural Development Programme (OYSADEP) and used for the analysis. A total of 110 questionnaires were administered in the study area and 95 were used. The major causes of price fluctuations include, Climatic conditions, transportation cost, insecurities in the country, Government policies and hike in fuel prices. The analysis of variance revealed that there were variations in the price level across the years 2009-2013 marketing period of tomato during its on-season and off-season. This could be due to the fact that production is more during the on- season than off-season. The Tukey honestly significant difference test revealed that during the on-season of tomato, the year 2010 has the least mean price and it showed very wide variation in mean price from the other years. During the off- season of tomato, the years that showed variations in their mean prices were 2009 and 2011.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Despite the high oil revenue, agriculture is still one of the most important sectors of the Nigerian economy. Agriculture contributes over 40% of Nigeria’s GDP, employs about 70% of the population and produces about 80% of the food needs (Aye, 2013). Among the wide range of agricultural crops, vegetables occupy an important place because of their economic potentials. The term ‘vegetable’ applies to those plants and plant parts that are edible, especially leafy or fleshy parts that are usually eaten with staples as main courses or supplementary foods in cooked or raw forms. It is estimated that there are at least ten thousand (10,000) plant species used as vegetables worldwide although only about kfty (50) are of great commercial value (Shing-Jy and Hsiao-Feng, 2003). Vegetables play a very significant role in human nutrition; they contain vitamins, minerals and chemical compounds that are essential for human health. For instance, vitamin A maintains eye health and strengthens the immune system, vitamin B helps convert food to energy, folate reduces the risk of some birth effects and helps prevent heart diseases. Vitamin C increases the absorption of calcium and iron from other food. Vitamin E is a powerful antioxidant that protects the cell from cancer causing agents. Dietary kbre helps move food through the digestive tract and lower blood cholesterol levels (FAO, 2006). The World Health Organization (WHO) places low vegetable intake sixth among its twenty risk factors of global human mortality, just behind better known killers such as tobacco use and high cholesterol (FAO, 2006). It is to this end that a minimum level of 400g per head per day is recommended for the consumption of vegetables by the WHO. However, according to the FAO (2010), vegetable consumption per head per day in Nigeria is as low as 179g compared to the recommended rate. Apart from its nutritional benekts, vegetables also serve as a source of employment for both the rural and urban dwellers directly or indirectly providing smallholder farmers with much higher income and more jobs per hectare than staple crops (AVRDC, 2006).
Among different vegetables grown in Nigeria, tomato clearly stands out as the most important both in scale of production and level of consumption (Adejobiet al., 2011). Tomato (Solanum lycopersicum) is grown by most dry season market gardeners who regard it as the principal crop. Tomato is one of the most important vegetable crops both in scale of production and level of consumption. Most other vegetables have restricted demand in Nigeria, demand for tomato is universal. Tomato has the great poverty alleviation capacity. Its production, handling, transportation, distribution and marketing will definitely employ a large number of people. Tomato can be processed and exported to other West African nations or sold within the country. An increase in agricultural productivity depends heavily on its marketability. An efkcient market does not only link sellers and buyers in reacting to current situations in supply and demand but rather has a dynamic role to play in stimulating consumption of outputs which are essential elements of economic development (Haruna et al., 2012). Katharina and Stefan (2011) have reported that the concept of marketing subsumes a set of different innovative advertising instruments which aim at having a large effect with a small budget.
Agricultural marketing is defined as the performance of all the activities involved in the flow of agricultural products and services from the initial points of agricultural production until they reach the hands of the ultimate consumers. It is concerned with all that happens to crops after they leave the farm gate; making decisions, taking actions and bearing the responsibility of the action. Agricultural marketing also articulates all processes that take place from when the farmer plans to meet specified demands and market prospects to when the produce finally gets to its consumers (Haruna et al., 2012). Aminu (2009) pointed out that in a typical vegetable marketing, retailers and wholesalers were observed to sell both tomato and onion at the same time in addition to other vegetables like hot pepper, sweet pepper, cabbage, salad and in some cases, chili pepper. The crops were sold in heaps, small baskets and metal containers of varying weights.
Tomatoes (Lycopersiconesculentum Mill.) are the second most important vegetable in economic importance and consumption in the world, second only to potatoes (Ibitoye et. al, 2009). They are used as fresh vegetable, and processed and canned as a paste, sauce, ketchup and juice (Muhammad & Singh, 2007). Tomatoes can be eaten raw in salads or cooked, fried or sundried (ARC, 2013). From processing to fresh market, and from sauce to juice and salad, the variety and usefulness of the fruit is virtually boundless. Tomato production is a remunerative business for smallholder as well as commercial farmers in Ethiopia. It is also the highest vegetable income earner in Kenya (Kirimi et. al, 2011). Tomatoes are conventionally grown in an open field during the dry periods using irrigation. On the other hand, rain fed tomato production in an open field was considered difkcult mainly because of disease attack leading to complete destruction of tomato plants. Seasonality in tomato production and concomitantly abundance and scarcity in supply is reflected, bringing about discrepancy in supply and demand for fresh tomatoes.
Despite the importance of tomatoes in the daily diet of the people and ever increasing demand for this crop, fresh tomatoes supply during the rainy period is limited and the price climbs up. Critical periods when tomato supply is of serious shortage around Fogera is from June through November. Fluctuations in the supply of tomatoes in the Kenyan market leading to market glut during in season and shortage during off season was also reported by Kirimi et. al (2011). According to Panday et. al (2005), tomato crop in India is severely damaged by damping off, bacterial blight, alternaria blight and tomato leaf curl virus. Major tomato diseases during the rainy period around Fogera in Ethiopia include late blight (Phytophthora infestans), early blight (Alternaria solani), septoria leaf spot (Septorialycopersici), fusarium wilt (Fusarium oxysporum), bacterial wilt (Rlstonia solanacearum formerly known as Pseudomonas solanacearum), powdery mildew (Leveillulataurica (Oidiopsistaurica), Erysipheorontii (E cichoracearum and E. polyphaga)) and viral diseases such as tomatoyellow leaf curl virus (TYLCV) and tomato spotted wilt virus (TSWV) (Getahun, 2023). These diseases could be controlled or mitigated through the use of integrated disease management (IDM). Successful tomato production during the rainy season has been demonstrated at Fogera using regular fungicide spraying (with Agrolaxyl, Ridomil and Mancozeb) as part and parcel of key practices of IDM. According to Greenwald (2013), based on Cornell University Cooperative Extension, it is impossible to control late blight on a plant if “5-10% of the foliage is infected.” Preventive spray is thus essential to limit the severity of disease outbreaks.
The importance of integrated disease management practice for rain fed tomato production is crucial. IDM package, according to Panday et.al (2005) in nursery beds comprised soil solarization, use of neem cake, bioagents application, nylon netting and streptocycline spray. Tomato production in the rain season requires attentive daily follow up of both the plant as well as the weather conditions. Control measures include the use of resistant varieties, seeds free from pathogens, seed treatment, improved drainage, proper sanitation, keeping cultivated fields clean free from weeds and other foreign material that can serve as host for the pathogens. Destroying infected plants and throwing them away from the field, the use of registered chemicals and crop rotation are also vital. According to Shamiyeh, et.al (2001) the major commercial control strategies for both early and late blight have been a preventive spray program with fungicide applications made on seven day schedule depending on weather conditions. Frequent fungicide applications, usually on a seven to ten day schedule, are imperative for acceptable disease control and successful tomato production in the rainy season.
Site selection is also an important initial step for IDM. The use of well drained soil which has not been used for tomato and similar crops production in the last two to three years is advised. Tomatoes benefit from crop rotation. It is critical to avoid planting tomato in a field planted the previous season with tomato, pepper, eggplant, or other solanaceous crop. These crops share some insect and disease problems. Crop rotation can avoid some diseases, and keep fertility. A three-to four year-rotation program with non-related crops is recommended to reduce build-up of pests and diseases. Ridging and staking are also crucial specifically to drain excess water and to keep the foliage and fruit off the ground, respectively. Supporting tomato plants using stick, bamboo, wire and/or rope, in addition to avoiding foliage and fruit contact with the soil, allows good air movement around the plants, allows for more uniform spray coverage, improves fruit quality and makes harvesting easier.
Constant supply of fresh tomatoes throughout the year requires an uninterrupted production both in the dry and rainy seasons. Aiming to ensure continuous production and constant supply of fresh tomatoes, this study was undertaken to evaluate planting periods on productivity and fruit quality of tomato varieties in the rainy season.
Tomato marketing is poorly developed in Nigeria. It is characterized mainly by the problem of seasonality and perishability amongst others. Worst still, in the past, the government paid more attention to production with little attention to the marketing of vegetables such as tomato, pepper, onions, garden eggs, okra and leafy vegetables despite the fact that they need spatial marketing facilities (Idachaba, 2000). Consequently, losses of 40ԟ50 percent occur for many vegetables mainly due to spoilage, inadequate transportation, sorting, improper packaging and handling and lack of storage facilities. Also, another problem with tomato marketing is in the area of standard weights and measurements. These leave the consumer to their luck and haggling abilities in securing a good deal. Thus, this study describes the marketing functions and structure, estimates costs and returns to tomato marketing and determines the factors influencing net returns of tomato marketers.
1.2 STATEMENT OF THE PROBLEM
Tomato and tomato products are important part of human diets. Currently, tomato has a higher consumption rate in developed countries and is often referred to as a luxury crop. In developing countries, tomato has become important part of the food basket as well. Tomato is the most widely consumed vegetable type in Ethiopia. It is well known that different attributes put households under different production and marketing potentials. The market outlets that households would like to participate might influence the type of vegetable crops they would like to grow and the size of farm land they would like to allocate to a specific crop. This could be due to the fact that the production and marketing decisions of households are two sides of the same coin. The two decisions go hand in hand as farmers produce what they could sell at an available market.
Knowing the interaction pattern between the two decisions helps to understand what crop is sold at which market and whether the intention of selling at a particular outlet increases or decreases the allocation of farm land to the specific crop. In moving from subsistence towards cash crop production, the role of markets and market price, information and infrastructure are substantial. Marketing of tomato, there is no link fruit at farm-gate which is an interesting process that has not been investigated much in Medebay Zana woreda. Both buyers and sellers usually do not have equal market information on the tomato prices at the local market. Under such circumstances, farm house holds selling tomato at farm-gate deal with the trade-off between selling their fruit at higher possible prices and avoiding the risk of losing product quality, if the transaction fails by holding on to higher prices. An interesting issue in this regard is what factors could enhance sellers bargaining position at the farm-gate transaction and how information flows facilitate farm-gate transactions to take place in a short period. However, due to some problems in market system and lack of relevant solutions for these problems of producers and consumers were not satisfactory in the study area. In the rural areas of Ethiopia for farmers better marketing is sine-qua-non. Farmers primarily market their Agricultural produce. Hence, to balance the demand and supply, it is important to conduct a research study on problems and prospects of tomato marketing, which is an important source of income for the farmers. Moreover there are no Woreda specific studies on the problems and prospects of tomato marketing. It is expected that the research study’s findings may help to the policy makers, implementers, traders, tomato producers, researchers, Government and Non Government Agencies (NGOs) to initiate appropriate measures.
Tomato marketing is poorly developed in Nigeria. It is characterized mainly by the problem of seasonality and perishability amongst others. Worst still, in the past, the government paid more attention to production with little attention to the marketing of vegetables such as tomato, pepper, onions, garden eggs, okra and leafy vegetables despite the fact that they need spatial marketing facilities (Idachaba, 2000). The lack of attention of government in the production of tomatoes which affect its production marketability as a result of high prices of tomatoes.
Adequate equipment as well as paying close attention to the production of tomatoes regardless of the season by the government is paramount in tomatoes production marketability. When local farmers farm tomatoes with local equipment and the stress that comes with it, it will lead to high pricing of tomatoes.
The lack of proper preservation of the perishable vegetable can also lead to the poor production of tomatoes, the little that is been produced,there will be a skyrocketing of prices.
This research tends to profound solution to the impact of prices of tomatoes on tomatoe production marketability.
1.3 AIMS AND OBJECTICVES
1. to determine the relationship between the prices of tomatoes and tomatoe production marketability.
2. to examine the impact of prices of tomatoes on tomatoe production marketability.
3. to examine the challenges of tomatoes production and marketability.
1.4 RESERCH QUESTION
1. What is the relationship between the prices of tomatoes and tomatoe production marketability?
2. What is the impact of prices of tomatoes on tomatoe production marketability?
3. What are the challenges of tomatoes production and marketability in Nigeria?
1.5 STATEMENT OF RESEARCH HYPOTHESIS
1. HO: prices of tomatoes have no significant effect on tomatoes production marketability.
2. H1: prices of tomatoes have significant effect on tomatoes production marketability.
1.6 SIGNIFICANCE OF STUDY
Tomatoes are the second most important vegetable in economic importance and consumption in the world, second only to potatoes (Ibitoye et. al, 2009). They are used as fresh vegetable, and processed and canned as a paste, sauce, ketchup and juice (Muhammad & Singh, 2007). Tomatoes can be eaten raw in salads or cooked, fried or sundried (ARC, 2013). From processing to fresh market, and from sauce to juice and salad, the variety and usefulness of the fruit is virtually boundless. Its importance cannot be over emphasized. As such it needed by families and the society at large. Large production of tomatoes will be required to enable affordability by both the rich and the poor in the society.
Therefore, this study has significant role to help policy makers in designing appropriate strategies that would be improved the effectiveness of tomato marketing in Nigeria. The study findings will assist tomato producers, traders, and marketing agents to make appropriate decisions in tomato production and marketing.
The study will help tomatoes farmers to have a better knowledge on tomatoes production marketability as well as prices that are favorable to all to have massive returns.
The government of Nigeria will understand the importance of tomatoes and its health benefits to its citizens and as such pay proper attention to the production of tomatoes and make massive input where needed. By so doing, tomatoes will be produce in large quantity which will make it more affordable and available regardless of the season.
Finally, it will serve as a literature to other researchers especially on agriculture and perishable products.
1.7 SCOPE OF STUDY
The study will cover the impact of prices of tomatoes on tomatoes production marketability.
1.8 LIMITATION OF STUDY
1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 DEFINITION OF TERMS
Impact: the action of one object coming forcibly into contact with another
Prices: the amount of money expected, required, or given in payment for something.
Tomatoes: a glossy red, or occasionally yellow, pulpy edible fruit that is eaten as a vegetable or in salad.
Production: Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. It is the act of creating an output, a good or service which has value and contributes to the utility of individuals
Marketability: the ability of a commodity to be sold or marketed.
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