PurposeThe study analyzed the profitability of tomato farmers and determinants of farmers' choice of marketing outlets (wholesaler or retailer) in Ghana.Design/methodology/approachA two-stage sampling technique was used to collect data from 100 tomato farmers in Ghana. Analytical tools which include descriptive statistics, gross margin analysis (GM), profitability ratios and binary logit model were employed.FindingsProfitability analysis indicates that farmers who supply to wholesalers have gross margin of Gh¢7.86 (US$1.67) per 25 kg crate, while farmers who supply to retailers recorded a major loss of Gh¢5.36 (US$1.14) per 25 kg crate. The result suggests that farmers selling to wholesalers are better off than farmers supplying to retailers. The binary logit regression analysis reveals a positive relationship between farmers' choice of marketing outlet (wholesaling) and age of respondents, quantity of tomato sold and cost of labor for production. A negative relationship also existed between farmers' choice of marketing outlet and weighted average selling price and household size.Research limitations/implicationsThe results call for policy efforts to provide an enabling environment for more extension education and establishment of farmer associations to make marketing information for price development among farmers available.Originality/valueThe choice of marketing outlet greatly influences profitability of tomato production. This study examines the performance of the various tomato marketing outlets in Ghana.
PurposeTo help address the problem of imperfections in the performance of cowpea markets in Ghana, the study sought to understand the costs and benefits associated with different market outlets and factors influencing farmers' choice of these outlets.Design/methodology/approachA two-stage sampling technique was adopted to collect data from 300 cowpea farmers through purposive sampling of communities and simple random selection at the farmer level in Ejura Sekyedumasi municipality of Ghana. Analytical methods including profitability measures such as gross margin, net margin, return on investment and multinomial logistic (MNL) regression model were used to analyze the data.FindingsThe results showed that production and marketing of cowpea is profitable with farmers who trade in wholesale markets recording the highest gross margin (Gh₵1245.85 (US$227.76)), net margin (Gh₵1029.37 (US$188.18)) and return on investment (ROI) of 63%. Important nonfarm-related factors including household size, farming experience, membership of farmer-based organization and extension contact were found to significantly influence the choice of marketing outlets in the study area. In addition, market attributes such as produce selling price, volume of cowpea sold and post-harvest value addition were also key determinants of cowpea market outlet choices.Practical implicationsThe results of the study are vital to agricultural administrators in devising efficient cowpea market systems for smallholder farmers in Ghana. Likewise, the study provides important information to smallholder farmers in the choice of market outlets that maximizes their returns.Originality/valuePrevious studies on marketing of cowpea in Ghana emphasized on direct retail or consumer marketing to maximize farmers' returns. Meanwhile, there are claims to suggest that the sale of cowpea grains in the country are carried out through varied market outlets which come with differing costs and benefits implications for smallholder farmers. Therefore, the present study comprehensively compared associated costs and benefits in all available cowpea market outlets so as to settle the confusion surrounding most profitable and efficient marketing channel for smallholder farmers toward poverty reduction.
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