Economic Analysis of the Marketing of Fruit in Lagos State of Nigeria (A case study of Oyingbo, Oshodi and Ikotun Markets)

  • O I Ajani


The study focused on the processing and marketing of fruits in Lagos State. Data for the study were obtained from three markets namely Oyingbo, Oshodi and Ikotun markets in Lagos State, Nigeria using structured questionnaires, simple random sampling technique was used to collect data from sixty marketers with 20 marketers selected from each market. The data collected was analyzed using inferential and descriptive statistics to show the socio-economic characteristics of the marketers and processors of fruits and to estimate the marketing margins, net margins and profitability at different levels of marketing. Results revealed that tomatoes had highest marketing margin of 39.90 % and 41 % at both the wholesale and retail levels in the three markets. This implies a wide gap in prices between wholesalers and retailers. The study also revealed that fruits are cheapest in Oyingbo market. The least marketing margin was recorded in the sales of bananas at the wholesale level (19 %) and oranges (18.09 %) at the retail level. This implies a higher marketing efficiency in some fruits (banana) than another (tomatoes) because a higher percentage marketing margin shows lower marketing efficiency. Majority of the traders lack basic formal education. This hinders marketing efficiency, due to the fact that they do not keep records of day to day financial activities. This also prevents them from obtaining loan from financial institutions. Traders in the study areas mainly got their initial take-off capital from personal savings, friends and local lending agents. Capital is not readily available for further expansion. Lack of good and cheap means of transportation has posed a serious threat to the traders. This is due to frequent fuel scarcity, long distance from point of production, poor roads and dilapidating condition of existing roads. Recommendations include training marketers on simple preservation techniques, introducing uniform and standard weights as well as provision of storage facilities, in a bid to minimize variations in prices of fruits.

Nigerian Journal of Horticultural Science Vol. 10 2005: pp. 38-46

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eISSN: 1118-2733