Determinants of Revenue Derived from Pineapple Marketing in Edo State, Nigeria

Abstract

The study examined the determinants of revenue derived from pineapple marketing in Edo State, Nigeria. The specific objectives are to describe the marketers, determine the marketing margin and efficiency, estimate the profitability of pineapple marketing and identify the factors affecting the revenue generated from pineapple marketing. A multistage sampling technique was used to select two hundred (200) respondents and data was obtained using a combination of interview and structured questionnaire. The results showed that an average pineapple marketer has a mean volume of 98 dozens and incurred a variable cost of N222, 861.28 earning average revenue of N289, 323.44 per month. The gross margin per person was N66, 442.16 for unprocessed pineapple per individual marketer about N678.19 and N1, 422. 62 was recorded as gross margin per dozen of processed and processing pineapple respectively. The average marketing margin was N1, 127.11 per dozen of unprocessed pineapple fruit and N1, 697.17 for the processed fruit. The marketing efficiency of unprocessed pineapple fruit (47.5%) and processed fruit (79.8%) in the study area were less than 100% indicating that the market is under efficient. The quantity of pineapple purchased (t-value= 111.529) and transport cost (t-value= 4.203) incurred were the statistically significant determinant of the revenue derived from pineapple marketing. The result of the regression analysis indicated that pineapple purchased and transportation cost incurred had positive and significant influence on the revenue accrued from pineapple marketing in the study area. The major constraints to pineapple marketing identified were, perishable nature of pineapple, exploitation from buyers and poor storage and processing facilities

Key Word: Pineapple marketing, revenue efficiency, profitability, Edo State, Nigeria