Structure, Conduct and Performance of Tomato Marketing in Ghana

Abstract

Marketing of agricultural products especially tomato has been a vocation for most women in Ghana, but little attention has been given to the marketing efficiency of tomato. The study analysed the efficiency of marketing system of tomatoes in Pwalugu in the Upper East Region of Ghana. The study depended mainly on primary data collected through a semi-structured interview with sixty-four respondents involved in the tomato marketing chain. Deconstructed Marketing Margins, Gini Coefficient, Returns on Capital Employed and the marketing efficiency criterion were used in assessing the efficiency of the marketing system of tomatoes. An average profit margin of Gh?21,888.68, Gh?110,060.70 and Gh?1,169.03 for farmers, wholesalers and retailers per year respectively was realized. Also, farmers realized a return on capital employed of 1,127.6%, 237.6% for wholesalers and 66.0% for retailers. Our finding of a highly profitable tomato marketing industry in Pwalugu is contradictory to the views portrayed in the Ghanaian media. We advocate for a module to be developed for tomato marketing and processing under the National Youth Employment Programme (NYEP).

Keywords: Efficiency, deconstructed market margins, tomato, marketing system, return on assets