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Determinants of market margins among okra traders

Author

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  • Onuwa, Godfrey
  • Obasi, Polycarp
  • Eze, Chrostopher

Abstract

In the tropics, okra is an important vegetable crop and its production is a viable livelihood activity; however, several factors affect its marketing and margins derivable thereof. Therefore, this study analyzed the determinants of market margins among okra traders in Owerri, Imo State, Nigeria. Primary data collected via multistage sampling were analyzed using descriptive statistics, market performance and regression analysis. The results revealed that the estimated market margin and market efficiency index were ₦1900/bag (100kg) and 0.35, respectively. Channel 4 (27%) had the highest percentage of commodity sales volume. The coefficient of multiple determination (R2) was 0.826; hence, 83% variation in the market margin was accounted for by variables in the regression model. Moreover, coefficients of the variables including age (0.873), education (0.696), market experience (0.571), cost price (–0.598), quantity sold (0.576), marketing cost (–0.72) and income level (0.98) were significant determinants of okra market margins. They identified constraints affecting okra marketing in the study area. This study recommends the provision of incentives, policy adoption to mitigate income inequality and improve market performance; regulation of commodity prices, agent exploitation and marketing costs; adoption of modern communication tools and technologies, market channel diversification; provision of market infrastructures and interventions.

Suggested Citation

  • Onuwa, Godfrey & Obasi, Polycarp & Eze, Chrostopher, 2022. "Determinants of market margins among okra traders," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 65(3), March.
    • Handle: RePEc:ags:pojard:356141
    DOI: 10.22004/ag.econ.356141
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    Keywords

    Agribusiness; Marketing;

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