Analysis of profitability and operational efficiencies of fresh tomato marketing: empirical evidence from Oyo State Nigeria

Abstract

Although marketing is considered a very important aspect of agricultural production, it has been a neglected aspect of agricultural development plans and this has led to a situation where marketers of fresh tomatoes are not able to track their level of profitability and which invariably makes it difficult to attract prospective investor to the business. This study examines empirically profitability and operational efficiencies of fresh tomato marketing in South Western Nigeria. The study employed primary data using structured questionnaires to collect information from 100 randomly selected fresh tomato marketers in the study area. Data collected were analyzed using descriptive statistics; gross margin and marketing efficiency analytical techniques. The result of the analysis revealed that for every ₦100 invested in fresh tomato trading in the study area, wholesalers, retailers and wholesalers/retailerrealized profit of ₦28.00, ₦18.00 and ₦ 258.00 respectively while the average operational efficiencies of wholesalers, retailers and wholesalers/retailer are 60.85%, 74.00% and 80.50% respectively. These positive and size of profits obtained for each fresh tomato marketing institutions is an indication that these institutions were able to recover their operating expenses; hence, marketing fresh tomato in the study area is
profitable and efficient.