Efficiency of onions marketing Ikeduru rural markets of Owerri area, Imo State, Nigeria

Abstract

This study examined the performance of onions marketing in Ikeduru rural markets of Owerri area of Imo State, Nigeria. The study measured market structure using gross margin analysis and the productive efficiency using the production function analysis. Percentages and means were used to measure the respondents socioeconomic characteristics. Samples of 120 respondents were used. The study revealed that the respondents had a mean age of 37.2 years, 5 years in formal school and 15 years experience in onions marketing. Trading stock and transportation contributed the highest to total variable cost with 82.48% and nine percent respectively. A gross margin of 14.14% of sales receipts or 16.47% total variable costs was realized. The productive efficiency as measured by the production function showed that onions' marketing in Ikeduru rural markets was in the early stage one of the production surface with a return to scale of 0.8824. This means inefficiency in the application and use of the productive marketing resources. The implication of these results is that as long as resources are not fully used and appropriately applied in onions marketing, the respondents would continue to earn low profit in the structurally inefficient rural markets with its attendant poverty related implications. Variables such as trading stock, transportation cost, educational attainment, marketing experience, index of relative importance of onion in the food system and storage and security were found to have positive and significant effect on sales receipts of the onion marketers.

International Journal of Natural and Applied Sciences Vol. 2(1) 2006: 55-60