PROFITABILITY ANALYSIS OF FRESH TOMATO MARKETING IN ABUJA MUNICIPAL AREA COUNCIL (AMAC), FEDERAL CAPITAL TERRITORY, ABUJA NIGERIA
- Nnabude C. U.1 and Aboki, P. M (PhD)2
- DOI: https://doi.org/10.5281/zenodo.22085021
- UKR Journal of Education and Literature (UKRJEL)
This study examined the profitability of fresh tomato marketing in Abuja Municipal Area Council (AMAC), the Federal Capital Territory (F.C.T) Abuja Nigeria. The study analyzed the socio-economic characteristics of tomato marketers, identified existing marketing channels, estimated profitability, determined the factors influencing profitability and examined the major constraints facing marketers. Primary data was collected from 91 randomly and proportionally selected fresh tomato marketers using interviews and structured questionnaires administered across major markets within AMAC. Data was analyzed using descriptive statistics, gross margin analysis, and Ordinary Least Squares (OLS) regression techniques. The results revealed the existence of four major marketing channels, with the producer–wholesaler–retailer–consumer channel being the most dominant distribution pathway. Gross margin analysis indicated that fresh tomato marketing in AMAC is profitable. The regression results showed that quantity of tomatoes sold and years of marketing experience had positive and statistically significant effects on profitability at the 1% level, while cost of tomatoes had a negative and significant effect. Age and household size were not statistically significant determinants. The model exhibited a high explanatory power, with an adjusted ‾R² of approximately 0.91 indicating that is 91% of the variation in profitability was explained by the included variables. Major constraints identified included high transportation costs, post-harvest losses due to inadequate storage facilities, price volatility, poor road infrastructure, and limited access to affordable credit. These factors significantly reduced marketing efficiency and income stability. Improving market infrastructure, transportation, storage facilities and access to credit will scale up efficiency in the marketing system of fresh tomatoes in the study area.
Keywords: Fresh Tomato, Marketing Channels, Gross Marketing margin, Profitability, Regression Determinants, Constraints, AMAC, Abuja, Nigeria.

