Determinants of market margins among okra traders

Abstract

In the tropics, okra is an important vegetable crop and its production is a viable livelihood activity; however, several factors affect its marketing and margins derivable thereof. Therefore, this study analyzed the determinants of market margins among okra traders in Owerri, Imo State, Nigeria. Primary data collected via multistage sampling were analyzed using descriptive statistics, market performance and regression analysis. The results revealed that the estimated market margin and market efficiency index were ₦1900/bag (100kg) and 0.35, respectively. Channel 4 (27%) had the highest percentage of commodity sales volume. The coefficient of multiple determination (R2) was 0.826; hence, 83% variation in the market margin was accounted for by variables in the regression model. Moreover, coefficients of the variables including age (0.873), education (0.696), market experience (0.571), cost price (–0.598), quantity sold (0.576), marketing cost (–0.72) and income level (0.98) were significant determinants of okra market margins. They identified constraints affecting okra marketing in the study area. This study recommends the provision of incentives, policy adoption to mitigate income inequality and improve market performance; regulation of commodity prices, agent exploitation and marketing costs; adoption of modern communication tools and technologies, market channel diversification; provision of market infrastructures and interventions.

Empirical Analysis of African Aubergine (Solanum gilo) – Marketing and Income Disparity among Traders in Owerri, Imo State, Nigeria

“…This factor is influenced by the forces of demand and supply, which are determinants of market equilibrium. This result aligns with the findings of Onuwa et al (2022) and Ugwumba (2009), who similarly observed a significant and positive correlation between the sales volume of agricultural commodities and the marketing margin of the participants in their respective studies on agro-commodity marketing.…”

“…Other constraints include the perishability of the commodity (45.2%), inadequate storage facilities (44.2%), price volatility (38.9%) and exploitation by middlemen/agents (24.2%). This is consistent with findings from Onuwa et al (2022), Slamet et al (2017), Asa et al (2012) and Sreenivasa et al (2007), who also highlighted [in their respective studies] similar constraints that significantly impacted agro-commodity marketing.…”

“…The first stage involved the purposive selection of Owerri, including Owerri municipal, Owerri West LGA and Owerri North LGA out of the 27 LGAs in the state, due to the predominance of trading activities in the area. The second stage involved the purposive selection of six (6) major commodity markets in the study area, namely Owerri main market, relief market, new market, Nkwo-Ukwu Ihiagwa market, Ezi-Obodo market and Obinze market, based on the concentration of vegetable marketing activities and their market size (Onuwa et al, 2022). In the third stage, 95 African Aubergine traders from the commodity markets were randomly selected as respondents for this study.…”

“…Other marketing studies have identified a number of channels in the marketing chain. Onuwa et al (2022) and Mussema (2006) posited multiple marketing channels in their respective studies on agro-commodity marketing. Without markets, agricultural production remains stagnant.…”

Determinants of Margin and Income Disparity Among Pearl Millet Traders

“…Thus, the amount of years the respondents spent in the marketing function has a direct impact on their marketing experience; and as such, improving agricultural produce marketing effectiveness over a period of time. This finding is supported by (Onuwa et al, 2022;Onuwa et al, 2017) who posited related findings on profitability of agricultural produce marketing.…”