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International Journal of Applied Research and Technology 3
Esxon Publishers
International Journal of Applied Research and Technology
ISSN 2277-0585
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Economics of Pineapple Marketing in Owerri Municipal
Council Area, Imo State, Nigeria
Esiobu, N. S., Nwosu, C. S. and Onubuogu, G. C.
Imo State University, Owerri, Nigeria.
Available online: May 31, 2014
To cite this article:
Esiobu, N. S., Nwosu, C. S. and Onubuogu, G. C. (2014). Economics of Pineapple Marketing in Owerri Municipal Council
Area, Imo State, Nigeria. International Journal of Applied Research and Technology. 3(5): 3 – 12.
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International Journal of Applied Research and Technology 4
International Journal of Applied Research and Technology
Esxon Publishers
Vol. 3, No. 5, May 2014. 3 – 12.
Economics of Pineapple Marketing in Owerri Municipal Council Area, Imo
State, Nigeria
Esiobu, N. S., Nwosu, C. S. and Onubuogu, G. C.
Imo State University, Owerri, Nigeria.
(Received: 21 May 2014 / Accepted: 27 May 2014 / Published: 31 May 2014)
Abstract
This study was conducted to analyze the economics of pineapple marketing in Owerri Municipal Council Area, Imo State,
Nigeria. The study identified socio-economic characteristics of pineapple marketers, ascertained marketing channels,
determined effects of socio-economic characteristics on profit margins, determined the marketing margin, ascertained the
marketing efficiency, examined the costs, return and profitability of pineapple marketing and identified the constraints
associated with pineapple marketing. Three markets from the study area were selected for this study. Sample size comprised
60 household pineapple marketers. Structured questionnaire were used in the collection of data. Data collected were analyzed
using descriptive statistical tools, gross income analysis and multiple linear regression analysis. Findings revealed that
pineapple marketing embraced more of able young persons as the mean age was found to be 34.12years. Results also revealed
that pineapple marketing is dominated by females (96.67%). Most (80.00%) of the pineapple marketers were married with
an average household size of five persons. Three product flow channels exist for the pineapple marketing with the major
channel being that from the producers through wholesalers to retailers and ultimately to the final consumers. The marketers
earned a positive net return of N770.00 and the return per capital was N0.55. Results from the estimated multiple linear
regression analysis revealed that age (2.934), marital status (5.149), education (5.184), marketing experience (3.272),
monthly income (2.676) and membership of cooperative (3.096) were found to be the significant factors influencing profit
margin and the relationships were statistically significant at 1% level of probability. The F-Ratio (57.298) revealed the overall
significant of the model which led to the rejection of the null hypothesis hence concludes that the socio-economic
characteristics of pineapple marketers have a significant influence on their profit margins. Findings also revealed that
pineapple marketing is efficient and lucrative in the area. However, inadequate capital, price fluctuation and inadequate
storage facilities are the major constraints militating against its efficient marketing system. It was therefore recommended
that effective agricultural policies and programmes should focus on marketers easy access to credits. Infrastructural facilities
such as good feeder roads should also be provided for the marketers to reduce spoilage and distressed sales. Marketers should
be encouraged to form agricultural marketing cooperatives to eliminate the exploitative activities of some middlemen.
Ultimately, processing companies should be established in the area so as to bring processors closer to the marketers. This
will reduce the rate of perishability, shorten the chain of distribution and enable marketers to receive better prices at reduced
transportation cost.
Keywords: Pineapple, Economics, Marketing, Owerri, Imo State
For corresponding author:
E-mail: info@esxpublishers.com
Subject: 0514-0235
© 2014 Esxon Publishers. All rights reserved
International Journal of Applied Research and Technology 5
Introduction
Pineapple (Ananas comosus) is the third most important tropical fruit in the world after banana (Musa spp.) and Citrus spp.
(IITA, 2010; FAO, 2012 and CBN, 2012). Important producing countries are Brazil, India, China, Nigeria, Mexico and
Colombia. They produce the fruit primarily for fresh fruit markets and processing industry. Nigeria ranked 6th on the list for
world pineapple production with nearly 800,000 tonnes produced annually (IITA, 2010 and FAO, 2012). However,
agricultural marketing is part of agricultural production without which agriculture remains stagnant (Abbot, 2000; Arene,
2003; Keerthi, 2008; Munonye, 2010; Amao et al., 2011 and Eze and Orebiyi, 2011). According to Ubi et al. (2005) and Ubi
et al. (2008) the crop is drought tolerant and well adapted to the tropical acid sand with pH ranging from 4.5 to 6.5 and the
crop is propagated by new vegetative growth. Hasegawa et al. (2002) revealed that pineapple is a delicious fruit with fine
flavour and high nutritive value, its contents makes it a good raw material in confectionary industries for making sweet, fruit
drinks and household food addictives. It has medicinal value and a fragment consumption of pineapple juice immunes one
against fever parasite (Hasegawa et al., 2002 and Amao et al., 2011). Pineapple is used mainly as food in the form of snacks
and fruit-juice, while in most parts of the world the fermented juice is used to make vinegar and alcoholic spirit. Pineapple
leaves are used to make cloth and rope, while the whole plant is used as a source of energy (Sampson, 2001; Ubi et al., 2005
and Ubi et al., 2008).
Agricultural marketing dictates how often the producer will increase and or produce their yield (Oluwatayo et al.,
2003). A good marketing organization directs production along the most suitable needs of the consumers (Abbot, 2003 and
Munonye, 2010). The market mechanisms have to be efficient to be able to play the role of propelling yield. An efficient
market system therefore is the one that provides satisfactory and cheap services to consumers or one that maximize the ratio
of input and output of marketing (Arene et al., 2003; Munonye, 2010 and Olayide, 2011). Thus, marketing of pineapple is
as essential as its production since an effective marketing system helps to harmonize demand and supply and stimulate
production (Adesope, et. al., 2010). Apart from Nigeria’s agriculture not producing enough to meet the food requirements
of the increasing population, one of its greatest problems is that of inadequate vitamins in the diet of a large proportion of
the population, especially in the rural areas which constitute over 70% of the country’s population (Ojo, 2003 and Onaiwu,
2011). In realization of the importance of vitamins, the various governments in Nigeria have been pursuing programmes at
the national, state and community levels to boost the production of fruits and vegetables (Ojo, 2003). For example, the
Federal Government of Nigeria, desirous of boosting the level of vitamin in-take among its citizenry, immediate poverty
alleviation, and rapid agricultural development, supported the production and distribution of 10,000,000 suckers of
pineapple, which can be planted on 250 hectares of land (FAO, 2012 and CBN, 2012).
Beside the essential nutrients pineapple supply to the diet, the tremendous contribution pineapple make to our foreign
exchange earning explains why concerted effort should be devoted to its cultivation, improvement, marketing, processing
and storage (Ojo, 2003 and Hasegawa et al., 2002 and Amao, et al., 2011). It is therefore pertinent that this study analyzed
the economics of pineapple marketing in Owerri Municipal Council Area of Imo State, Nigeria.
Furthermore, research development and investment effort have often been focused primarily on production (Njoku,
2000; Keerthi, 2008 and Amao, et al., 2011). Agricultural production in Nigeria relies heavily on the input of human labour
(Nwajiuba, 2012). Production increases without a well-developed marketing system lead to all possible gains from the
production effort going into the drains of post-harvest losses (Amao, et al., 2011 and Eze and Orebiyi, 2011). Often,
marketers are compelled if not forced to sell their fruits at a very low price to avoid huge wastage or total loss and this
reduces their marketing margins and marketing efficiency (Onaiwu, 2011 and Amao et al., 2011).
Also, a lot of studies have looked at economics of pineapple production in Nigeria (Njoku, 2000; Sampson, 2001; Hasegawa
et al., 2002; Ojo, 2003; Ubi et al., 2008; Keerthi, 2008 and Onaiwu, 2011). Others have focused on the socio-economic
implications and marketing channels of pineapple (Njoku, 2000; Keerthi, 2008; Adesope, 2010; Amao et al., 2011 and Eze
and Orebiyi, 2011). There exists little or no study in Nigeria in general and Imo State in particular that has focused on the
economics of pineapple marketing. This has left a void in research. Empirical evidence remains largely scanty, isolated and
devoid of in depth analysis of the marketing margins, channels, efficiency costs and return and constraints of pineapple
marketing. This has caused a wide gap in knowledge. Hence it has become pertinent to economically analyze pineapple
marketing in Owerri Municipal area of Imo State, Nigeria. The specific objectives of the study include describing the socio-
economic characteristics of marketers; ascertaining the marketing channels; determining the effects of socio-economic
characteristics of on profits margins; determining the marketing margin; ascertaining the marketing efficiency; examining
the costs, return and profitability of pineapple marketing and identifying the constraints associated with pineapple marketing
in Owerri Municipal area of Imo State, Nigeria.
From the limitation of the study, constraints on time and resources of the researcher forced to select only sixty
respondents from the study area for the study. Hence results are largely applicable to other areas of the State not selected.
The questionnaire and personal interview methods of data collection require the respondents to recall from their memories
about their pineapple marketing practices. Hence, the findings may be subject to memory lapses of the respondents. The
marketing prices realized differ from respondent to respondent, but was calculated and used in obtaining the final result of
the study. Hence, the findings may be subject to inconsistency in other areas where similar condition prevails. However,
these limitations did not in any way, impair to reliability of the findings and could therefore be taken to represent the true
situation in the study area.
International Journal of Applied Research and Technology 6
Materials and Methods
This study was conducted in Owerri Municipal Council Area of Imo State, Nigeria. Owerri Municipal Council Area is an
urban area with one autonomous community made up to five (5) indigenous kindred namely; Umuoroonjo, Amawom,
Umuoneeche, Umuodu and Umuoyima in the order of seniority under the leadership of one paramount ruler. Owerri
Municipal Council covers areas such as World Bank, Aladinma, Ikenegbu, Prefab, Tetlow, School Road, Wetheral and
Douglas. Owerri Municipal Council is located in the humid tropical ecological zone of Nigeria between latitudes 50 251N
and 500 231N and longitude 70 21E and 1490 331E of the Greenwich meridian (Metrological Unit, Ministry of Land and
Survey, 2006 and Microsoft Corporation, 2009).
It is bounded on the North by Amakohia, North-east by Uratta, East by Egbu, South–east by Naze, South by Nekede
and North-west by Irrete. Owerri Municipal Council has two geological regions namely; a coastal plain and a plateau portion
(Imo-ADP, 2004). The area has a mean annual rainfall of 2250mm-2500mm (Imo State Planning and Economic Commission,
2004 and Microsoft Corporation, 2009). The mean temperature range is 250C to 270C and its relative humidity is 80%. The
vegetation is typical rainforest with a total land mass of 58km2 (Microsoft Corporation, 2009) and a population of 127,213
persons (NPC, 2006 and NBS, 2007). Many businesses exist in the municipal council because of the vantage position it
occupies as the seat of Imo State government and therefore the epicenter of all economic, social and religious activities in
the state but most of citizens are engaged in trading and civic services.
Purposive sampling technique was used for the study. Three markets namely Ekeonunwa Market, New Market and
Relief Market in the municipal council area were chosen subjectively because it is the major markets in the study area.
Twenty five pineapple marketers were randomly selected from each of the three major markets given a sample size of seven
five pineapple marketers for the study. The main tool for data collection was the structured questionnaire and it was
supplemented with verbal interview in places where the respondents could neither read nor write. However, the study found
only sixty responses valid and was used for data analysis. The questionnaire sought for information on socio-economic
characteristics of the pineapple marketers, quantities of pineapple purchased, costs associated with pineapple marketing and
the associated problems.
Data collected were analyzed with descriptive statistics, gross income analysis and multiple linear regression
analysis.
Results and Discussion
Table 1 reveals that majority (61.67%) of the pineapple marketers fell within the age bracket of 31 to 40 years. It also showed
that (31.67%) of pineapple marketers are less than 30 years, while 6.67% are 41 years and above. The mean age was 34.12
years. This is an indication that pineapple marketing is dominated by young individual who are active and within the
productive age group. The result is similar with the finding of Aruna (2006) and Ibekwe et al., (2010) who reported that this
age group constitute the major productive work force and that young individual have potentials to withstand stress, risk and
have strength to face tedious task associated with pineapple marketing than the too young or too old individual. Entries in
Table 1 also show that majority (96.67%) of the pineapple marketers were females while 3.33% were males. This agrees
with the confirmation that agribusiness especially in sub-Saharan Africa is turning out to be female activities (DAC, 2005
and FAO, 2007). Table 1 also reveals that majority (73.33%) had secondary education, 18.33% had primary education, 8.33%
had tertiary education while 6.67% had no formal education. The mean educational level was 10.43 years. The result implies
that approximately 93.33% of the marketers had trainings in formal educational institutions which no doubt increases their
literacy levels. It is expected that the higher level of education will contribute significantly to decision making of a marketers.
This implies that exposure to higher education increases marketing efficiency, improves access to market information as well
as enhances marketers ability to understand and evaluates new marketing technique (Anyanwu, 2012). This is in line with
the findings of Onyenweaku and Nwaru (2005) and Onyenucheya and Ukoha (2007) that high level of education is an added
advantage in terms of acquiring loan especially in formal financial institution. The distribution of the marketer according to
marital status is also reported in Table 1 and it reveals that majority (80.00%) were married, (13.33%) were single while
8.33% were widowed. This shows that fruit marketing is the business of married individual. This finding is supported by
previous studies by Adesope et al., (2009) that pineapple marketing is dominated by married individuals while the unmarried
ones migrate to the city in search of white-colar jobs.
Result in Table 1 also indicates that majority (50.00%) had below 10 years of marketing experience, (48.33%) had
11-19 years of marketing experience while 1.67% constitute those with 20 years of marketing experience and above. The
average marketing experience was calculated as 13.21 years. Experience in marketing is a key factor in marketing efficiency
, margin and the longer the years of marketing experience, the more exposed the marketer becomes and the more efficient
and effective the marketer is expected to be in allocation of resources (Nwaogu, 2006; Adeola et al., 2008 and Eze and
Orebiyi, 2011). Table 1 also shows that majority (58.33%) of pineapple marketers had household size of 1 to 5 persons while
41.67% had household size of 6 to 10 persons. The mean household size was 5.5 persons. The finding is consistent with
Efiong (2005) and Adegbite (2008) that reported that relatively large household size enhances the availability of labour. This
implies that the pineapple marketers had access to family labour and this therefore explain why the use of hired labour in
small-scale marketing enterprise is very low as observed by (Idiong, 2005). A household comprises all persons who generally
live under the same roof and eat from the same pot (FOS, 1985). Lipsey (1986) also defined a household as all people who
live under one roof and who make or are subject to others making for them joint financial decision. For the purpose of this
study, a household comprises the head, the wife/wives, children and other dependents that live in the same house.
Marketers place of purchase are also reported in Table 1. It shows that majority (96.67%) of pineapple marketers
buys the pineapple they marketed within Imo State while 3.33% buys theirs outside Imo State. The finding is consistent with
International Journal of Applied Research and Technology 7
Anyanwu (2003) and Oladejo (2009) that reported marketers who buy the product they market outside the State buys in
larger quantities hence are the wholesalers in the business. Table 1 also indicated membership of cooperative it reveals that
(46.67%) of pineapple marketers belongs to different group of pineapple marketers association in the market area while
56.67% do not belong to any pineapple marketers association. Ajibefun and Aderinola (2007); Ashagidigbe et al., (2011)
and Anyanwu (2012) have argued that membership of cooperative affords marketers the opportunity of sharing information
on modern marketing strategies and to help members financially. Table also show that majority (43.33%) of pineapple
marketers make an average income between below N20,000, (26.67%) make N21,000 to N40,000, 21.67% of the marketers
make an average of N41,000 to N60,000, 6.67% make an average income of N61,000- N80,000 while 1.67% make an
average income of N81,000 and above. The average income was N32, 821.00. Higher income increases the purchasing power
hence marketers with the higher monthly income are more likely to purchase more goods which would increase profit margin
and marketing efficiency (Adeola et al., 2008; Eze and Orebiyi, 2011 and Onwumere et al., 2011).
Ultimately, Table 1 reveals that majority (58.33%) of pineapple marketers sold at least 4 baskets of pineapple per
week, 23.33% sold 3 baskets per week, 10.00% sold 2 baskets while 8.33% sold 1 basket per week. The average quantity
sold per week was 3.7 baskets. The finding is consistent with Eze and Orebiyi (2011) who reported that the demand for
pineapple is high in the study area. The marketing channel for the commodity reveals the nature of the market organization
(Keerthi, 2008; Amao et al., 2011 and Eze and Orebiyi, 2011). In order to determine the influence of pineapple marketers’
socio-economic characteristics on profit margin, a multiple regression analysis was carried out in four functional forms
(linear, semi-log, double-log and exponential forms). Based on the statistical significance of the coefficient goodness of fit
and the economic theory that supports marketing concept, the double-log function was chosen as the lead equation. The
double-log regression function was chosen as the lead equation based on the value of R2(0.942), F-Ratio value(57.298),
conformity of the signs with a priori expectations of the model and has the highest number of significant variables, that is
six variables. The coefficient of multiple determinations (R2) was found to be 0.942 (94.2%). This is an indication that 94.2%
of the variation in the profit margin of the pineapple marketers was explained by the explanatory variable. Age (X1): Age
was found to be positively related to profit of the pineapple marketers. This implies that older marketers make more profit
than their younger counterparts. The reason for this may be that pineapple marketing demands much strength and energy
which could be easily supplied by the older pineapple marketers. The relationship is significant at 1% level of probability.
Marital status had a positive coefficient with the profit of the pineapple marketers. This implies that married people
make more profit that their single counterpart. The reason for this could be than married marketers easily supply the capital
and labour needed to improve the marketing efficiency and profit margin for the pineapple marketing in the study area. The
relationship is significant at 1% level of probability. Education had a positive coefficient with the profit margin of the
marketers hence it is statistically significant at one percent level of probability; the result was consistent with the findings of
Coelli and Battese, (2005) and Ashagidigbe et al., (2011) that reported that marketers with formal education have greater
ability to adopt new technology, ideas, information and marketing strategies to maximize profit. The household size had a
positive relationship with profit. This could be that increase in household size makes for increase in labour hence ensures
expansion of marketing outlet which ensures proper coverage of market and reduces cost of labour (Yusuf and Malomo,
2007). Experience had a positive relationship with profit. This implies that an experienced marketers knows the problems
involved and are in a better position to use new strategies to overcome them which would positively increase profit margin
and marketing efficiency. The relationship is significant at 1% level of probability. Monthly income had a positive
relationship with profit margin and it is significant at 1% level of probability. This implies that increase in income increases
the purchasing power of the pineapple marketers hence marketers with the highest monthly income are more likely to
purchase more of the pineapple which would increase profit margin. Place of purchase had a positive coefficient with profit.
This implies that marketers who purchase the pineapple they market from within the Imo State made less profit than those
who purchase theirs outside Imo State hence it could be that marketers who purchase the pineapple they market outside Imo
State are the wholesalers from whom marketers that purchase within the Imo State buys from. Membership of cooperative
had a positive coefficient with profit and it is significant at 1% percent level of probability. This implies that marketers who
belong to an association gather more information, credit and knowledge on how to enhance profit margin and they could also
exchanges labour (Ashagidigbe et al., 2011). Gender had a negative relationship with profit. This implies that more female
are involve in pineapple marketing hence the result was inconsistent with the finding of Ajibufun, et al., (2002) who reported
that marketing is a physical enterprise with a positive influence if male actively dominate it.
The F-ratio (57.298), which determines the overall significance of the regression model, is highly significant at 1%
level hence we conclude that the pineapple marketers’ socio economic characteristics had a significant influence on profit.
The results in Table 3 revealed that the marketing cost for a basket of pineapple is estimated to be N1,150.00 while a net
margin of N1,700.00 was obtained for the same basket of pineapple. The findings showed that net margin is a good one
hence as the quantity of pineapple to be sold increases, the net margin increases as well. The results in Table 3 revealed the
majority 59.05% of the total variable cost of pineapple marketing is the costs of pineapple. The contribution of the fixed cost
was low compared to the variable costs incurred. The fixed cost contributed only 12.92% of the cost of pineapple marketing.
The return on capital invested was found to be N0.55. It can be inferred that for every naira invested, there is fifty-five kobo
returns for that marketing in the study area. Table 3 indicates a total revenue (TR) of N5,850.00, gross income (GI) of
N1,430 and a net income (NI) of N770.00.From the marketing efficiency result obtained, the market is efficient hence the
finding is consistent with Eze and Orebiyi (2011) that examine the profitability of pineapple marketing in the study area.
The Costs and Return Analysis of Pineapple Marketing are presented in Table 4 while the constraints faced by
pineapple marketers in the study areas were ranked according to their severity in Table 5. The inadequate capital was the
most serious constraint of pineapple marketers with 96.67% of the pineapple marketers identifying it. Inadequate storage
International Journal of Applied Research and Technology 8
facilities ranked second (91.66%). The perishable nature of the pineapple fruit was the serious constraint of pineapple
marketers. Pineapple gets spoilt easily when not properly stored and this is accounts for the severe losses suffered by
pineapple marketers in the study area. Also 86.87% of the pineapple marketers complained of price fluctuations which
ranked third on the list of constraints. This constraint left many marketers unaware of frequent changes in prices of pineapple.
Seasonality of production was the fourth on the list with 78.33% of pineapple marketers identifying the constraints.
Furthermore, 71.67% of pineapple marketers complained of inadequate price information as they are usually uninformed
about new changes in price of pineapple by their wholesaler, suppliers or farmers.
Ultimately, poor feeder road (68.33%) and inadequate of shed or shop (63.33%) ranked sixth and seventh
respectively. Fighting these constraints will be vital in enhancing pineapple marketing in Imo State and maybe in Nigeria.
Conclusion and Recommendations
The study has analyzed the economics of pineapple marketing in Owerri Municipal Council Area, Imo State, Nigeria. Based
on the findings age (2.934), marital status (5.149), education (5.184), experience (3.272), monthly income (2.676) and
membership to association (3.096) were found to be the significant factors influencing profit margin and the relationships
were statistically significant at 1% level. The F-Ratio (59.298) revealed the overall significant of the model which led to the
rejection of the null hypothesis hence concludes that the socio-economic characteristics of pineapple marketers have a
significant influence on their profit margins. Increase in them, will improve increases efficiency. The net return could
positively increase if the marketers are encouraged to form agricultural marketing cooperatives in order to eliminate the
exploitative activities of the middlemen so as to increases purchase as the fruit is in high demand in the study area. It was
recommended that good feeder roads should be constructed and the old ones rehabilitated either by the government or
communities linking rural areas for easy transportation of pineapple produce since the product are bulky and perishable and
this will reduce the transportation cost as complained by the marketers, processing companies/facilities should be established
in the area. This could be done by government or private companies for easy processing of raw materials into juice as well
as bringing processors closer to the marketers. This will reduce the rate of perishability, shorten the chain of distribution and
enable marketers to receive better prices at reduced transportation cost, new shops/sheds should be constructed and the old
ones rehabilitated in the market areas and at reduced price for the marketers. This could be done by government or private
companies as this would reduce the high scorched of sun and heavy down pull that affects marketers while they sell their
product, the government or private companies should allocate more resources and research funding to social researchers to
enhance research on pineapple marketing within and beyond the study area, the entire marketing system should be
restructured. Marketers should be encouraged to form agricultural marketing cooperatives in order to eliminate the
exploitative activities of the middlemen and ultimately, the marketing agencies should be enforced by government to take
care of the marketing problems that are associated with the speculative activities of the middlemen.
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International Journal of Applied Research and Technology 10
Tables
Table 1: Socio-economic characteristics of Marketers
Variables
Frequency
Percentage (%)
Age (years)
Less than 30
19
31.67
31-40
37
61.67
41 and above
4
6.67
Total
60
100.0
Gender
Male
2
3.33
Female
58
96.67
Total
60
100.0
Educational Level (Years)
No formal
4
6.67
Primary
11
18.33
Secondary
40
66.67
Tertiary
5
8.33
Total
60
100.0
Marital Status
Married
48
80.00
Single
8
13.33
Widowed
5
8.33
Total
60
100.0
Experience (Years)
Less than 10
30
50.00
11-19
29
48.33
20 and above
1
1.67
Total
60
100.0
Household Size (Number of Person)
1-5
35
58.33
6-10
25
41.67
Total
60
100.0
Place of Purchase
Imo
58
96.67
Outside
2
3.33
Total
60
100.0
Membership of Cooperative
Member
28
46.67
Non member
32
53.33
Total
60
100.0
Average Income (Naira)
Less than 20,000
26
43.33
21,000-40,000
16
26.67
41,000-60,000
13
21.67
61,000-80,000
4
6.67
81,000 and above
1
1.67
Total
60
100
Quantity Sold/Week (Baskets)
1
5
8.33
2
6
10.00
3
17
23.33
4
35
58.33
Total
60
100.0
Average age = 34.12 years; Mean Educational level= 10.43 years; Average Marketing Experience = 13.21 years; Mean household size=
5.5 persons; Average Income = N32, 821.00; Average quantity sold per week = 3.7 baskets Source: Field Survey Data, 2013
International Journal of Applied Research and Technology 11
Table 2: Regression Analysis of the Influence of Socio-economic Characteristics on Profit Margin of Pineapple Marketers
Explanatory Variable
Double-Log
Semi-Log
Linear
Exponential
Constant
7.608
(16.272)***
-864.608
-(15.824)***
54153.188
(5.220)***
-1009.230
(-0.108)
Age (X1)
0.684
(2.934)***
1216.82
(1.092)*
52776.212
(1.524)**
1874.012
(0.639)
Marital Status (X2)
1.536
(5.149)***
1657.22
(0.097)
1522.262
(2.965)***
3501.652
(1.363)**
Education (X3)
0.108
(5.184)***
345.624
(3.304)***
9381.90
(6.734)***
345.002
(6.528)***
Household Size(X4)
-0.015
(-0.625)
-8379.28
(-0.757)
-682.953
(-0.310)
-9343.829
(-0.057)
Experience (X5)
0.598
(3.272)***
1287.11
(1.006)*
-2581.900
(-0.048)
5837.44
(2.278)**
Monthly Income (X6)
1.655
(2.676)***
2348.53
(2.829)***
1638.223
(2.968)***
8461.12
(0.693)
Place of Purchase (X7)
0.245
(0.104)
8669.729
(5.602)***
2162.16
(0.211)
-3286.34
(-0.584)
Membership of Cooperative (X8)
1.787
(3.096)***
5928.11
(2.539)***
225.028
(5.062)***
6.001E-6
(9.149)***
Gender (X9)
-0.402
(-0.321)
9848.32
(1.982)*
2738.287
(0.010)
(5210.846)
(1.239)
R2
0.942
0.867
0.699
0.645
F-Ratio
57.298***
37.771***
7.578***
53.380***
Source: Computer Printout of SPSS (2013); values in Parenthesis are t-values *Statistically Significant at 10%; **Statistically Significant
at 5%; *** Statistically Significant at 1%
Table 3: Marketing Margin for Pineapple in Owerri Municipal Council Area, Imo State
Items
Average Cost/Basket (N)
Percentage (%)
Marketing Cost
Transportation
500.00
43.47
Labour
350.00
30.43
Storage
300.00
26.08
Total Variable Cost
1150.00
Marketing Margin
Purchase price
3000.00
Sales price
5850.00
Gross margin
2850.00
Net margin
1700.00
Source: Field Survey Data, 2013
International Journal of Applied Research and Technology 12
Table 4: Costs and Return Analysis of Pineapple Marketing
Items
Average Cost/ Basket (N)
Percentage (%)
Total Revenue
5850.00
Variable Costs
Transportation
500.00
9.84
Storage
300.00
5.90
Labour
350.00
6.88
Acquisition Cost
3000.00
59.05
Loading Cost
150.00
2.95
Off-Loading
120.00
2.36
Total Variable Cost
4420.00
Fixed Cost
Depreciation on Basket
150.00
Depreciation on Knife
10.00
Depreciation on Shop/Shed
500
Total Fixed Cost
660.00
12.92
Total Cost (TFC+TVC)
5080.00
Gross Income
1430.00
Net Income
770.00
Return on Capital Invested
0.55
Marketing Efficiency
1.15
Source: Field Survey Data, 2013
Table 5: Frequency Distribution of Constraints Associated With Pineapple Marketing
Source: Field Survey Data, 2013. **Multiple Responses obtained
Constraints
Frequency**
Percentage (%) **
Rank Order**
Inadequate Capital
58
96.67
1ist
Inadequate Storage Facilities
55
91.66
2nd
Price Fluctuation
52
86.67
3rd
Seasonality of Production
47
78.33
4th
Inadequate Price Information
43
71.67
5th
Poor Feeder Roads
41
68.33
6th
Inadequate of Shed/Shop
38
63.33
7th
