Comparative Analysis of Net Incomes for Supply Chain Actors of Fresh Tomato in Bauchi State, Nigeria

Abstract

The study compared the net farm income of fresh tomato supply chain actors (SCAs) among central, western and northern zones of Bauchi State. Primary data were collected with the use of a structured questionnaire. Simple random sampling technique was used to select 658 supply chain actors (producers, wholesalers, and retailers). The data collected were analysed using farm budgeting technique and analysis of variance (ANOVA). The result reveals net incomes of N186025.35, N321883.48 and N 66858.45 for producers, wholesalers and retailers, respectively. Also, the study shows returns per naira invested on every one naira as N0.78, N0.29 and N0.2, minimum net incomes of N -314058.33, N -2499400, N-80250.00 and maximum net incomes of N979826.67, N 4929150.00, N 368050.0 for producers, wholesalers and retailers, respectively. The result shows significant differences in the net incomes of wholesalers and produce; wholesalers and retailers; and between retailers and producers at p < 0.05 and P<0.01 was observed. The result further reveals minimum costs incurred as N115122.50, N253450.00, N73470.00 and maximum costs incurred as N 805658.33, N4026350.00 and N 725570.00 for the SCAs. The result indicated significant differences in costs incurred between wholesalers and producers, wholesalers and retailers at P<0.01. The study concluded that fresh tomato production and marketing in the study area was profitable among the supply chain actors. It can also be said that there was significant differences in both the net incomes obtained and costs incurred by the supply chain actors among the zones. The study recommends that decisions on fresh tomato production and marketing be adjusted and re-established so as to optimise their profits. Also, SCAs can sell their products online by registering their product and location. This will allow easy access of the product by customers and it will help broaden fresh tomato market, which in turn will increase the income of the supply chain actors in the study area.