IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 5 NO. 1 2019

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Structure and Efficiency of Onion Market in Umuahia Area of Abia State, Nigeria

Obasi, Igwe Oscar & Kalu, Onyinyechi Nnenna

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Abstract

This study was conducted in Umuahia area of Abia State, Nigeria. Two Local Government Areas (LGAs) were purposively selected which is Umuahia south and Umuahia North. Two clans were purposively selected from each of the L.G.A’S, 15 Retailers were randomly selected from a central market in each of the clans making a sample size of 60 respondents. Descriptive statistics, Gini coefficient, cost and returns analysis and Regression models were the analytical tools employed. Result showed that the market was competitive with a Gini coefficient of 0.46 which implied that the market was competitive and tends towards perfect market. The result also showed that the business was profitable with an average net return of ?12,020 in a month. The significant variables that influenced marketing efficiency were cost of transportation, volume of sales, level of education and amount of credit used. Major problems of onion marketing includes; high cost of transportation , insufficient capital, inadequate and unreliable market, weather condition, competition ,and spoilage. The study recommended that structural reforms that can improve marketer’s access to loans and credit should be encouraged so as to induce higher rate of competition for sales in market. The significant variables that influenced marketing efficiency should be considered in policy issues

keywords:

Onion, Structure, Efficiency, Marketing.

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