PROFITABLITY OF ONION MARKETING IN YOLA NORTH LOCAL GOVERNMENT AREA OF ADAMAWA STATE, NIGERIA

Abstract

This study analyzed the profitability of onion marketing in Yola North Local Government Area of Adamawa State, Nigeria. Data were collected from Jimeta Modern market, Old market and Yola by-pass market. Descriptive statistics, gross margin, marketing margin and Herfindal Hirschman index were the analytical tools used for the study. The results revealed that onion marketing is profitable with a gross margin of N35,83811/month and N234,610.00/month for the retailers and wholesalers respectively. Retailers and wholesalers obtained a respective net income of N35,74373 and N234,083.75 per month. The marketing margin for retailers and wholesalers was found to be 10.4% and 22.0% respectively. The respective Herfindal Hirschman indices of wholesalers (0.14) and retailers (0.04) indicated that there was no market concentration as wholesalers makes more profit than retailers. Lack of credit facilities to expand the business, high cost of transportation due to bad feeder roads were the major problems encountered by the marketers. The study recommends that credit facilities should be provided to marketers, bad feeder roads linking producing areas and the markets should be rehabilitated and high cost of transportation be addressed so as to expand their business, reduce loses and in turn maximize profit.