Tomato prices fluctuation and marketing analysis in Ido Local Government area of Oyo State

Abstract

Tomato is one of the most important and major vegetable crops grown in Nigeria but fluctuations in the prices of tomato reinforce food insecurity and malnutrition. This study sought to assess the effects of price fluctuation and profitability index of tomato business in Ido Local Government Area (LGA) of Oyo State. A two-stage random sampling method was used for this study. Four markets (Akufo, Apete, Elenusonso and Ido markets) were sampled out of 10 major markets in Ido LGA. Afterwards, twenty-five (25) tomato marketers were randomly selected in each of the selected markets. In sum, one hundred (100) copies of a well-structured questionnaire were administered to elicit needed information. The differentials rates in turn-over per season was estimated to assess the influence of price fluctuation on tomato business using descriptive statistics while Gross Margin analysis was used to determine the profitability index of tomato business in the study area. The study thus concluded that there would be high potential for increased turnover during the dry season (Quarter 1 and Quarter 4) and would subsequently bring high income to the marketers within the study area. The marketers should therefore adopt value addition methods through processing and packaging of their products in order to avoid wastages that characterized rainy season business while economic policy of the government should be adjusted.