Marketing of Orange Fruit in Maiduguri Metropolitan Area, Borno State, Nigeria

Abstract

This study examined the marketing of orange fruit in Maiduguri. Primary data were obtained from the respondents with the use of structured questionnaires that were filled through interviews from 60 respondents. 30 wholesalers were randomly selected from the major wholesale market and 30 retailers, were also randomly selected, ten each from three different wards of the town. Descriptive statistics were used to analyze the socio-economic characteristics of the marketers as well as the problem associated with the orange fruit marketing. Gross margin analysis was used to determine the profitability of the marketing, while Gini coefficient was used to determine the degree of market concentration. The results show that all orange marketers were in their economically active age and are mostly males with very few educated up to tertiary level (ten percent). The cost and returns analysis showed that the gross margin per marketer per week for wholesalers is N 228,500, while for retailers is lower at N 6,355.  However, the gross margin per kilogramme of N 30 for the wholesale market is less than that for the retail market which stood at N 41/kg. The wholesale market has a high level of market concentration with a Gini coefficient of 0.813, while the retail market has a lower degree of concentration with a coefficient of 0.466. The markets therefore have monopolistic and oligopolistic tendencies respectively. Problems mentioned by the marketers include shortage of capital and storage facilities. The study therefore recommends that credit at favourable terms and modern storage facilities be provided to the marketers. This can enable them to expand their scale and possibly lower their cost. This could lead to lower prices to consumers and hence increased intake of orange fruits for better health outcomes.

Keywords: Orange, market channel, profitability, market structure

DOI: 10.7176/JBAH/9-22-02

Publication date: November 30^th 2019