Economic Efficiency and Profitability of Sweet Potato Marketing in Anambra State, Nigeria
Abstract
The study examined the economic efficiency and profitability of sweet potato marketing in Anambra State, Nigeria. Specifically, it described profitability, economic efficiency and constraints to sweet potato marketing. Multistage sampling procedure which involved purposive and random sampling methods was used to select 240 marketers (120 wholesalers and 120 retailers). Data were collected from primary source using well structured questionnaire and were analyzed by means of descriptive statistics, enterprise budgeting and Sherpherd-Futell techniques. From the result, profitability indicators such as net marketing income, return on investment, net return on investment and coefficient of marketing efficiency of ₦ 8,775,807.4, 1.68, 0.68, 59.6 and ₦7, 892,837.4, 1.89, 0.89, 52.6 for wholesalers and retailers respectively proved the enterprise profitable at both levels. The implication of the net return on investment figures is that the wholesalers and retailers respectively return 0.68 kobo and 0.89 kobo for every 1 Naira invested in the business. Findings also indicated marketing efficiency levels of 59.6% for wholesalers and 52.6% for retailers implying that the retailers are more efficient in the marketing of sweet potato than the wholesalers. Findings on the constraints shows that seasonality of the product, high cost of transportation and rioting militated against sweet potato marketing on the wholesale whereas rioting and inadequate storage facility were perceived at the retail levels. Modern storage facilities and good road transport systems should be made available so that the volume of trade of marketers should increase for optimum profit.
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Introduction
Agriculture is Nigeria’smost assured engine of development, a reliable key to industrialization, food security and alive wire to a well standardized country ensuring sustainability and poverty alleviation Nkamigbo, Ugwumba and Okeke (2019). Central Bank of Nigeria (CBN)(2014) opined that in Nigeria, the agricultural sector contributes about 42% of the gross domestic product (GDP) and provides employment to more than 70% of the people. Okeke and Nkamigbo (2013) and Isibor and Nkamigbo (2019) reported that agricultural sector is an engine room for sustaining growth of Nigeria economy and still remain the mainstay of our economy by providing food for the teeming population, create jobs as well as wealth, raw materials for industrial sector and foreign exchange earnings.
Sweet potato (Lpomea batatas L)is an herbaceous, warm-weather creeping plant that belongs to the family of Convolvulaceae and genus Ipomoea. It originated from South America where it was introduced to Europe between 153AD Sanusi and Adesogan (2014) and Udemezue (2019). The family is made up of 45 genera and 1000 species. Sweet potato grows throughout the world from latitude 400N to latitude 350S. It grows best at a temperature of between 24oC with annual rainfall of 1000mm to 7000mm Mbanaso (2010) and Udemezue (2019). Sweet potato is regarded as world most important food crop due to its high yield. It is the fifth most important food crop after rice, wheat, maize and cassava in developing countries like Nigeria and the seventh most important food crop in the world in terms of production Sanusi, Lawal, Sanusi and Adesogan (2016) and Udemezue (2019). Nigeria is one of the largest producers of sweet potato in sub Saharan Africa with annual production estimated at 3.46 million tonnes per year and fourth largest producer in Africa while Egypt is Africa number one producer followed by Malawi. It was introduced into Nigeria in the late 1694-1698 through the early activities of the Portuguese and Spanish explores (Mbanaso (2010). Production of sweet potato was encouraged by the British colonial government during the Second World War as their tubers were needed to feed their armed forces in West Africa. Since then, the importance of potato has been widely realized such that it is now as an important commodity in both local and international trade Ugonna, Jolaoso and Onwualu (2013).
Sweet potato is a major source of carbohydrate for millions of people especially in developing countries like Nigeria. It a great source of minerals like Manganese, Folate, Copper and Iron. The darker coloured variety is a great source of Carotenes (Precursor of Vitamin A), Vitamin C, B , B , E and biotin and also a source of dietary fibre, antioxidants which work in the 2 6 body to prevent inflammatory problems like asthma, arthritis and regulate blood sugar level Sanusi et al., (2016). They also noted that sweet potato can be used to fight against widespread of vitamin A deficiency that result in blindness and even death of about 25000-500000 African children per year. Vitamin A deficiency is a particular problem with children under five and for pregnant and lactating women. Serious Vitamin A deficiency can weaken the immune system leaving them susceptible to diseases such as measles, malaria, and diarrhea and can also lead to blindness.
Sweet potato plays a great role in developing countries; it provides job opportunity to teeming population by raising their income. The demand for sweet potato is quite higher than the supply Ajakaije and Akande (1999) as cited by Adewumi and Adebayo (2008). This is as a result of its high nutritional value, cheap and inexpensive of the product compared to other root source of carbohydrates and vitamin. The leaf of potato can be use to feed animal either fresh or in the form of silage. The tubers can be consumed by man either boiled, roasted or fried. It can be dehydrated into chips, canned, cooked and frozen, creamed and used as pie fillings. It could also be dried and ground into flour to make biscuits, bread and other pastries. Sweet potato can be pounded together with yam to give a delicious meal Udemezue (2019) .
Baby food has being formulated using sweet potato while some bakeries blend 15-30% of sweet potato flour for making bread and 20-30% for pastries. It is used for brewing of alcoholic drinks and as sweetness in non-alcoholic drinks Agbo and Ene (1992). Sweet potatoes have medicinal value, the leaf decoction is used in folk remedies for asthma, bug bites, burns, catarrh, ciguatera stomach distress, tumor and whit lows. Sweet potato starch can be used in textile, glue, paint and cardboard industries. Industrial potentials of sweet potato have not been exploited due to mainly chronic lack of awareness to the abundance of industrial and commercial benefits.
It was reported by Sanusi et al, (2016) that sweet potato production has recorded good profit margin and is suitable for income generation. It has the potential for food security as well as serving as a cash crop. Sweet potato is becoming a thriving business in the State due to its economic, nutritious and commercial value and it is readily available in every market called sweet potato market. They further reported that sweet potato marketing has a large potential to enhance agribusiness development, generate income and employment opportunities that will lead to significant impact in the rural sector and non-producing areas. Sweet potato from the farm reaches the consumers through the marketing system. Nkamigbo and Isibor (2019) reported that marketing involves all processes in the movement of products that consumers need from the point of production to the point of purchase. Marketing is concerned with all stages of operation which facilitate the movement of commodities from the farm to the consumers. Marketing has economic value because it gives form, time and place utility (Asogwa and Okwoche (2012) Osondu, Nwadike, Ijeoma, et al.(2014) further explained that efficient marketing plays a crucial role in an economy. This role becomes more evident in areas where there is high rate of urbanization. The marketing system enables producers as well as middlemen to earn income with which they purchase other useful goods and services Ebe (2007) as cited by Nkamigbo, Ugwumba and Okeke (2019) .
Ejechi, Anyagbunam, Okoye and Eleodinmuo (2014) noted that there has been growing activities in the marketing of sweet potato due probably to increasing consumer/marketer’sawareness of its economic, nutritional and medicinal values. Sweet potato is either sold as a whole, roasted or fried. The State has several daily markets both in the urban and rural areas where agricultural produce are sold especially sweet potato known as sweet potato market.
Conclusion
The result established by profitability indicators (gross margin, net marketing income and net return on investment values) that sweet potato marketing was a profitable venture both at wholesale and retail levels. Also, the retailers are more efficient in the marketing of sweet potato than the wholesalers although inefficiencies existed among their activities due to marketing constraints. The level of profitability would improve if adequate measures are taken by government and marketers to address marketing constraints. It was recommended that modern storage facilities and good road transport systems should be made available so that the volume of trade of marketers should increase for optimum profit.
