AN ANALYSIS OF THE MARKETING OF ONION IN MONGUNO LOCAL GOVERNMENT AREA OF BORNO STATE, NIGERIA

Abstract

This paper determined the profitability, marketing channel and marketing efficiency of onion marketing in Monguno Local Government Area of Borno State, Nigeria. Data were collected using well-structured questionnaires from 45 respondents selected using random sampling technique. The market analyses were done using descriptive statistics, gross margin, marketing margin and market efficiency formulae. The study revealed that onion marketing was profitable. The with a gross margin of N 2,888.00 and N 3,130.00 for wholesalers and retailers return on naira invested was 0.32% for wholesaler and 0.34% for retailer, which when compared to the cost of capital in the economy, showed that the marketers can generate enough capital to meet the obligation of repaying any loan could borrow in the course of their marketing activities. The marketing margin obtained was 32% for wholesalers and 33.3% for retailers. The marketing efficiency was 42% and 44.8% for wholesalers and retailers respectively. The problems of onion marketing in the study area include inadequate storage facilities, lack of adequate transport facilities, and lack of capital which affect the profits realized by the marketers. It was recommended that transport facilities should be provided marketing loans and credit made available to marketers and adequate and conventional storage facilities made available in the market by the government to prevent spoilages.

Keywords: onion, gross-margin, marketing margin, marketing efficiency.