BAYERO UNIVERSITY, KANO

FACULTY OF AGRICULTURE

DEPARTMENT OF AGRICULTURAL ECONOMICS AND EXTENSION

TITLE :

RESEARCH PROPOSAL

ON

PROFITABILTY ANALYSIS OF SOME SELECTED VEGETABLE (TOMATO, PEPPER AND ONION)

MARKETING IN YANKABA MARKET, NASSARAWA LOCAL GOVERNMENT OF KANO STATE

BY

HAYATU IBRAHIM ADAM

AGR/16/AGR/00971

SUPERVISED BY

DR. MUHAMMAD HALLIRU

DATE: JANUARY, 2022

Chapter one

1.0 Introduction

1.1 Background of the study

1.2 statement of the problem

1.3 objectives

1.4 Justification of the study

Chapter three

3.0 methodology

3.1 Descriptive of the study area (yankaba market, Nassarawa LGA Kano state)

3.2 method of data collection

3.3 Analytical tools

3.4 References

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

Agriculture in Nigeria is a major branch of the economy, providing employment for 70% of the
population. The sector is being transformed by commercialization at the small, medium and large-scale
enterprise levels. Major vegetables like cucumber, carrot, pepper, tomato, and onion play a vital role in
provision of source of livelihood to the people involved in the marketing activities of these agricultural
produce.

Agricultural marketing involves in its simplest from the buying and selling of agricultural produce. In the
olden days when the villages economy was more or less self sufficient, the marketing of agricultural
produce presented no difficulty as the farmer sold his produce to the consumers on a cash or banker
basis. However, in the modern marketing the agricultural produce has to undergo a series of transfer of
exchanges from one hand to another before it finally reaches the ultimate consumer.
Most vegetable including pepper, tomato, and onions are usually produced in the rural areas of
northern Nigeria particularly in kano, jigawa, plateau, katsina, bauchi and kaduna state.

The transpotation of these vegetables from rural area to the urban cities to obtain better prices is facing
a lot of challenges ranging from poor road network, high transportation cost, and sudden changes in
price as indicated by Adugna (2009) most of these cost are sometimes as high as 30% losses of vegetable
are recorded during transportation from point of production to the point of consumption.

In Nigeria, the consumption of vegetable had been on the increase and estimated at about 27 to 49.55kg
per person in a year, but the transport and handling cost has made the price to increase more than it is
supposed to and made some consumer to relent on consumption ( Adekanye 1998). In addition,
inadequate marketing facilities, storage facilities, and poor pricing also remainsas serious challenge in
the country (FAO 1997). This therefore lead to low investment in the enterprise and hence low return
per naira invest. Its include perishability, standardization requirement and seasonality, its marketing is
complex and challenging. With regard to this, the study intends to look at the Profitability Analysis of the
selected vegetables (pepper, tomato and onions) in Yankaba market, Nassarawa Local Government Area
of Kano state, bearing in mind the importance of this vegetables to human.

1.2 problem statement

Nigeria as a country is unable to meet its domestic requirement of for vegetables, fruits, floriculture,
herbs and spices. Between 2009 and 2010, Nigeria imported a total of 105,000 metrics tonnes of tomato
paste valued at over 16 billion naira to bridge the deficit gap between demand and supply in the country
(FAO 2010). Kali in 2019 attributed this situation to the socio-economic constraints surrounding they key
actors in the tomato value chain, institutional weakness and decline ng agricultural research. Vegetables
are also highly perishable as they start to lose their quality right after harvest and continued throughout
the process until it is consumed ( Kohl and Uhl, 1995). Hence vegetable marketing are risking investment
activities. The riskiness of vegetable marketing may be attributed to several factors which include lack of
market infrastructure which is a limiting factor causing low returns. Profitability is only determined by by
the use of input resources which is also dependent on the availability of proper logistic for transporting
the farm produce from the farm gate to the market. Another problem that I perceive that face the
vegetable marketers in the study are is the lack of standard measure for vegetable pricing. The
questions of interest in the study area are:-
1. What are the socio-economic characteristics of vegetable marketers (tomato, pepper, and
onions) in the study area ?
2. What are the marketing system and strategy adopted by vegetable marketers in the study area?
3. What is the level of profit generated from vegetable (tomato, pepper, and onions marketing in
the study?
4. What are the constraints militating against vegetable marketing?

1.3 Objective of the study

The broad objectives of the study is to analyze the benefits derived from vegetables (tomato,
pepper, and onions) marketing in yankaba market in order to generate valuable information
that will enhance the performance of vegetable enterprise, and also provide information to
people willing to venture or invest into agricultural product marketing particularly vegetables.
While The specific objectives are to:-
1. Describe the socio-economic characteristics of vegetable (tomato, pepper, and onion)
marketers in the study area
2. To describe the marketing system and strategy adopted by the vegetables marketers
3. To examine the profitability of the vegetables (tomato, pepper and onions) marketing in the
study area
4. To identify the constraints faced by the vegetables marketers

1.4 Justification to the study

Vegetables (tomato, pepper, and onions) being among the prominent food items consumed
almost every day in both rural and urban areas of the country, it is of great importance to
examine the benefits derived from the marketing of such vegetables in order to enhance the
performance of the vegetable enterprise. Yankaba market being the largest and almost
populous market for vegetables in kano because of vegetable production in the state and
proximity to production areas within and outside the state. Cost and returns analysis has
been used globally to justify both government and the non governmental organization
interventions in production, processing and marketing of agricultural crops. Thus this study
is design to bring the cost and returns accounted by vegetable (tomato, pepper, and onions)
marketers in yankaba market in nassarawa LGA of kano state. At the end of the study it Is
 hopefully expected that the findings will be significant to various stakeholders who operate
along the value chain.

CHAPTER THREE

3.0 Methodology

3.1 Study Area

The study was conducted in Yankaba Market which is one of the most populous and largest vegetables
market in kano state. Yankaba market is located in Kawaji ward Nassarawa Local Government Area of
kano state, it covers an area of 34km square and population of 829,600 (NPC 2016.) Nassarawa local
goverrnment is located at latitude 11.56’37’’N, longitude 8.33’ 45’’E (NPC2016). It has 11 wards which
are; Dakata, Gama, Gawuna, Giginyu, Gwagwarwa, Hotoro north, Hotoro south, Kaura goje, Kawaji,
Tudun murtala, and Tudun wada. Hausa and Fulani remain the dominant tribe or ethinic group in
Nassarawa local government with limited number of othe tribes.

Yankaba market is located along Hadejia road in Nassarawa local government area of kano state. The
market was established in year 1989. The people in in yankaba market are largely engaged I various
forms of vegetables marketing like tomato, pepper, onins, spinach, cucmber, lettuce and cabbage etc, its
not only containing people selling vegetables, it also contains so many prople engage in different
enterprises and business activities which include arable crops selling, tailors, boutique, automobile,
bicycle, tricycle, motorcycles and many more enterprises in the large marketing environment. It has two
main entrance and two exit which are under security control. This and many more features makes it a
conducive marketing environment

3.2 method of data collection

A simple census of the vegetable marketers in the market was taken and marketers were randomly
selected with a total of…….respondents for the study

Primary Data was used for the study. Data were collected with the use of well structured questionnaires
which was administered to the respondent by the researcher. the data that was collected include the
information on socio-economic characteristics of the marketers, such as gender, qualification,
educational level, marital status, years of experience etc. other type of data that was collected include
  Sources of vegetables (tomato, pepper, onions) supply to the traders
 Quantities supplied
 Marketing channel
 Buying and selling price
 Sales method
 Place of sales
 Pricing method
 Major problems of the traders

3.3 ANALYTICAL TOOLS

The analytical tools that was used for the research work is the basic statistical method (descriptive
statistics), Farm Budgeting model and the Net worth statement or balance sheet.

1. Basic statistical method was used in presenting and analyzing the data with the aid of
descriptive statistics such as percentage and frequency distribution. This was used to analyze
objective 1,2 and 4
2. Farm Budgeting model:- farm budget is among the most utilized tools of analysis in marketing, it
is used to compare the profitability different kinds of enterprises. It chrysalises ultimately into
the statement of cost and returns, based upon input and output data relevant to the problem in
question.

There are two types of budgeting, the partial and total budgeting. The partial budgeting was used to
achieve the objective (3) of the study. The partial budgeting consist of Gross Margin (GM) and Net
Income (NI) Analysis.

Gross Margin is very useful planning tool in a situation where fixed capital forms a negligible portion
of the farming enterprise as in the case of subsistence agriculture (Olukosi and Erhabor, 1988) the
GM is mathematically expressed as follows:

GM = GI – TVC

Where GM = Gross Margin

GI = Gross Income
 TVC = Total Variable Cost

The GM of an enterprise is the difference between Total Revenue (TR) and Total Variable cost of
marketing, OR the difference between TR and total cost of production.

3. Net Worth Statement or Balance Sheet: Net Worth Statement is often called a balance sheet or
financial statement which applies to appoint in time and represents a stock concept. It is like
taking a snap short of business at a particular point on time. It was also used to analyze
objective (3) of the study.

By definition, Net Worth statement is equal to total assets minus total liabilities, that is;

Net Worth: Total Asset – Total Liabilities

The Net Worth statement sometimes gives information on the solvency of the business and its used
as a basis for credit because bit shows the ability of the business and to meet short-run financials
demands. If the Total Asset exceed the Total liabilities the business is solved. The greater the Net
worth, the better the solvency position of the business.

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