Profitability Analysis and Efficiency of Ginger Marketing in Benue State, Nigeria

Abstract

The study examined the profitability and efficiency of Ginger Marketing in Benue State Nigeria. Multistage sampling technique was used in selecting 256 respondents. Data were obtained from primary source with well-structured questionnaire and analyzed using descriptive statistic, gross margin and marketing efficiency analysis. Results from the socio-economic characteristics showed that 35.2% were male and 64.8% were female with mean active workforce of 46.82 years; majority of ginger marketers (77.3%) were married and the mean household size was 9; ginger marketers had a mean marketing experience of 10years and the mean formal education attained by ginger marketers was 7 years indicating that most ginger `marketers had education. The gross margin was N98.36 and N151.78 for wholesalers and retailers respectively. The result further showed that marketing efficiency was 46.58% for retailers and 7.96% for wholesaler in the study area. Ginger marketers are faced with the problem of heavy tax and high cost of transportation. The study showed that ginger marketing is profitable and efficient in the study area. It is recommended that tax should be properly conducted to reduce multiple taxation and good roads should be provided to reduce transport cost.