MARKETING STRUCTURE and PERFORMANCE of Ocimum Gratissimum in Selected Markets in Ibadan Metropolis

7/29/2019 MARKETING STRUCTURE and PERFORMANCE of Ocimum Gratissimum in Selected Markets in Ibadan Metropolis

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SEDInst 2011. All rights reserved

This work by Science Education Developme

ht Science Education Development

Printed in Nigeria

MARKETING STRUCTURE AN

1Us

1Federal College of Forestry, P.

ABSTRACT

The study was carried out wit

gratissimum in the selected m

collected from three market l

respondents were sampled fro

gratissimum trading. The resultOcimum gratissimum marketin

1.64, and 1.59 respectively, sh

locations. For the mode of pric

66.7% while 33.3% claimed th

facing Ocimum gratissimum tra

transportation system from rur

demand during rainy season.

should be provided so as to

gratissimum. The trader shoul

loans, which will lead to expan

KEYWORDS: Ocimum gratis

INTRODUCTION

Ocimum gratissimum is a crop with

use as a medicinal plant and as a

and Agboola, 2008). It is a valuab

plant which belongs to the familyis distributed in tropical and wa

regions. Extracts of the plant contai

activity (Adebolu et al., 2005

activity (Nakamura et al., 1999), an

(Lemos et al., 2005), antim

(Ezekwesili et al., 2003), and antip(Holetz1 et al., 2003). Ocimum

usually referred to as Efinrin, is a

and widely distributed in tropi

temperate region and propagated

seeds are broadcast on a prepared

and covered with propagators to g

easy germination (Dalziel, 1948).

30-130cm tall, with opposite li

leaves 30-11cm long and 1-6cm b

its enormous economic and indu

there is little research work on the

crop.

It is a fact that one importanproduction of goods and services

riculture, Sciences and Engineering R

t Institute is licensed under a Creative Commons Attribution 3.0

tp://www.ejournal.sedinst.comInstitute, 2011 Volume 1 (Issue 2

D PERFORMANCE OF Ocimum gratissimum IN SE

IN IBADAN METROPOLIS

an J.M,2Adeoye I.B. and

2Adebisi-Adelani O

M.B. 5087, Ibadan, Nigeria, 2National Horticultural R

Nigeria, PMB Ibadan.

in Ibadan metropolis to determine the marketing a

rkets. The data were collected by the use of questi

cations which were Bode, Aleshinloye and Dugb

each market based on the population of the people i

shows that more female (93.3%) than males (6.70%g. The marketing efficiency for Dugbe, Aleshinloy

owing that marketing of Ocimum gratissimum was

determination, tying the Ocimum gratissimum in bu

at they determined the price through association. Th

ding in the study area include price fluctuation, inade

l area to the urban centres, inadequate finance, rapi

ased on finding it was recommended that adequat

reduce spoilage and thereby improving the shel

be encouraged to form cooperative societies so as

ion of their trading business thereby increasing their

simum, Marketing analysis, Ibadan Metropolis.

a wide range of

spice (Obembe

le multipurpose

Lamiaceae, andrm temperature

ns antimicrobial

), antibacterial

tifungal activity

larial activity

otozoal activityratissimum is

perennial plant

cal and warm

by seed. The

ermination bed

nerate heat for

It grows from

ht green silky

oad. In spite of

trial potentials,

arketing of the

t level in theis the market.

The main reason why pro

agriculture is still taken its

that there is a market whic

reaching out to final cons

market or marketing cannotit is the medium for distribu

Ocimum gratissimum suppl

herbs for medicinal purpose

marketing occur both in

because of it uses. The tra

the seller and buyer, Ocusually sold in the ope

bargaining between the buy

high level of economic satis

Marketing channels are the

commodity moves or follo

consumption. It could be si

multi-stage channel. Market

between supply and consu

Marketing functions are

performed in the marketing

role of agricultural marketin

between production and con

There is need to investigOcimum gratissimum withi

search

nported License.

Oct: 24 - 29, 2011

LECTED MARKETS

esearch Institute of

alysis of Ocimum

nnaire. Data were

markets. Twenty

volved in Ocimum

) were involved ine, and Bode 1.48,

fficient in market

dles accounted for

major challenges

quate supply, poor

spoilage and low

storage facilities

f life of Ocimum

to have access to

rofitability.

duction in respect to

est, form and shape is

serves as channel for

mers. The aspect of

be over-emphasized astion. The marketing of

food supplement and

. The direction of the

rural and urban area

de is characterized by

imum gratissimum isn market by direct

r and seller to ensure

action.

paths through which a

s from production to

ngle stage channel or a

ing channel is the link

mption of a product.

specialized activities

process. The unique

is that it acts as a link

umption point.

ate the marketing ofn Ibadan, since their


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major production centers markets

and eastern part of Nigeria. Market

role in the production process

organized efficient market stru

profitable returns to the Ocimu

(Efinrin) producers and reasonabl

consumers.

Different level of costs is incurred

the marketing channel and overall

what the final consumer pay for a g

the goods concerned.

The structure, conduct and p

interrelated factors that d

characteristics of the organization

which seems to influence the natur

and pricing within the market.

The Objectives of the study are: To examine the

characteristics of the Ocim

sellers.

To determine the prmarketing efficiency.

To compute market condgratissimum in the study a

METHODOLOGY

The study was carried out in Ibada

is located in Southwest Nigeria,

from Lagos and is a prominen

between the coastal region and thnorth. Ibadan, capital city of Oyo

made up of eleven local govern

independence, Ibadan was the larg

populous city in Nigeria and the

after Cairo and Johannesburg.approximately on longitude 30oS

Greenwich meridian and latitude 7

equator at a distance of about 154k

Lagos. Ibadan consists of eleven l

areas with a population of 2,(National Population Census,

majority are traders. Ibadan had be

administration of the old Westernsince the days of the British Coloni

of the city ancient protective walls

day.

The principal inhabitants of the cit

people, with its strategic location

lone connecting Lagos to Kano, th

center for trade in Ocimum grati

tomato onion leafy vegetables and sindustries in the area include th

agricultural products.

Data were collected by a cross-sec

Ocimum gratissimum sellers in tThese were collected by the use o



are in western

ing plays a vital

ecause a well

ctures ensures

m gratissimum

low prices to

however along

cost determines

iven quantity of

rformance are

etermine the

of the market

of competition

socio-economic

um gratissimum

fitability and

uct of Ocimumea.

n Metropolis. It

120Km inland

t transit point

arrears to thetate, Nigeria is

ment areas. At

st and the most

third in Africa

It is Located, 54oE of the

W, 23N of the

m North-East of

cal government

50,593 people2006), where

en the centre of

Region, Nigerial rule, and parts

till stand to this

are the Yoruba

on the railway

city is a major

simum, pepper

pices. The mainprocessing of

tional survey of

e study areas.well structured

questionnaire which were

the assistance of enumerat

research, 60 questionnaire

three randomly selected mar

Dugbe, Aleshinloye and B

were collected through pe

traders. An interview schelicit information from t

problems in filling the questi

A sampling survey is known

means of generating data

required. The sampling tec

random sampling techni

questionnaire for data collec

Descriptive statistics such as

distribution were used to

economic characteristics of

marketing and the gross mato measure the relative pr

gratissimum trade in the stu

models used by Okunmade

adopted for the analysis.

Gross margin = Total reProfit margin =

marketing cost

Marketing Efficiency =

Total Marketing Cost =

marketing function

Gini Coefficient was used to

concentration ratio for the

marketers across the study

measure the relative degree

among Ocimum gratissmeasuring income inequalit

Coefficient ranges between

proximity to unity impli

inequality, hence, higher

1983). Coefficient greater thinequality distribution (D

1993).

The computation of th

the following relationshiGC = 1- XY

Where,

GC = Gini Coefficient

X = Percentage of sweet

Y = Cumulative percentsellers.

= Summation

RESULTS AND DISCUSSI

search

nported License.

elf administered with

rs. In conducting this

were distributed to

kets. The markets are:

de market. The data

rsonal interview with

dule was designed tohe traders who has

onnaire.

to be the most suitable

since new data is

hnique in this study is

ue using structured

ion.

percentage, frequency

analyze the socio-

the respondent. The

rgin models were usedfitability of Ocimum

y area. The following

a et al., (2000) were

enue cost priceGross margin Total

Total Revenue

otal marketing cost

Cost price + Cost

estimate the degree of

Ocimum gratissimum

rea. This was used to

of income distribution

imum sellers, thusy. The range of Gini

zero and unity. Closer

s greater degree of

oncentration (Todaro,

an 0.35 would indicateillion and Hardaker,

Gini Coefficient has

p:

potato sellers.

age of income from the

ON


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Table 1 shows the sampling

respondents. Twenty responden

sampled from each market making

respondents. The sampling size wa

the population of Ocimum gratiss

the selected markets.

Table 1: Frequenc

Market

Dugbe

Aleshinloye

BodeTotal

Table 2 shows the socio-economiresult shows that majority of

gratissimum traders were female (

in agreement with earlier work b

(2007) on marketing analysis of(Thaumatococcus danialli Benn.) i

showed that 99.2% of the sellersin contrast with Oluyole and Us

found that 92.7% of male were in

marketing in Odeda Local Gover

Ogun State. This means that m

labour demanding agricultural pro

were in the hand of males while l

Table2: Socio-Economic Variables

Table 3 shows the budgetary analysAleshinloye and Bode markets we

Variable

GenderMale

Female

Total

Age (Year)

Below 20

20-30

31-40

41-50

Above 50

Total

Marital status

Single

Married

Divorced

Widowed

Total

Educational level

No formal education

Primary education

Secondary education

NCE

OND

HND

University

Total



size of the

ts each were

a total of sixty

the function of

imum sellers in

y distribution of the respondents

Frequency Percentage

20 33.3

20 33.3

20 33.360 100.0

variables. Thethe Ocimum

93.3%). This is

y Usman et al.

iraculous berryn Ibadan which

ere female, butan (2006) who

olved in cocoa

nment Area of

re tedious and

ucts marketing

ess tedious and

easy to handle ones were b

female marketers. On agnumber of them were withi

the marital status 63.3%

educational level shows tha

education, 51.7% had primarhad secondary education.

Ocimum gratissimum traderseducated. The implication is

and write would enhance t

new innovation and exp

information which would l

marketing activities.

f respondents Ocimum gratissimum traders

is per bundle for Ocimum gratissimum. The marketinre 1.48, 1.64and 1.59 respectively. This means that

Frequency Percentage

4 6.70

56 93.30

60 100.0

0 0.00

3 5.00

18 30.00

21 35.00

18 20.00

60 100.00

0 0.00

38 63.30

10 16.70

12 20.00

60 100.00

8 13.30

31 51.70

21 35.00

0 0.00

0 0.00

0 0.00

0 0.00

60 100.00

search

nported License.

ing carried out by the

distribution, a goodage 31-50 years. For

were married. The

13.3% had no formal

y education while 35%This means that the

in the study area werethat the ability to read

em to easily adapt to

se them to market

ead to more efficient

efficiency for Dugbe,Ocimum gratissimum


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Table 6 shows the constraints faci

gratissimum traders in the study

shows the rapid spoilage constitu

problems they faced. This is as

storage facilities in the marke

problems include inadequate suppl

Table 6 Constraint facing t

Constraints

Price fluctuation

Inadequate supply

Rapid spoilageLow demand

Poor transportation

Inadequate finance

Total

CONCLUSION AND RECOMME

This study shows that there wasconcentration with the Gini coeffi

structure is 0.589 in the OcimumIbadan. This shows that the mar

imperfect because few traders

proportion of sales. In Ocimu

marketing, a more effective way

degree of concentration is by pro

gratissimum traders with adfacilities, providing the traders

marketing information as regards p

supply and availability of the buye

be done through extension agents

and State Governments and also p

From the findings, one can conclu

gratissimum marketing in Ibadan

venture. This is based on the

margin per bundle of the product.

Based on the finding of the stud

recommendations are made:

- Adequate storage faciprovided for the Ocim

traders in the study

serves as food suppl

for the inhabitants.

- There is also need fosupport Ocimum gra

by making sure

products are available

by motorist so as to re

transportation.

- The study shows thtraders had primary

should be therefore

and educated about

marketing such as

packaging that coul

Ocimum gratissimum

and efficient.



ng the Ocimum

rea. The result

tes the highest

result of poor

areas. Other

y (30.0%), low

demand especially during th

and price fluctuation (4.00%

during rainy season because

the Ocimum gratissimum

which can be harvested for

the market to buy it.

he business ofOcimum gratissium trading

Percentage

4.00

15.00

30.00

6.00

30.0

15.0

100.00

DATION

some degree ofcient of market

gratissimum inket structure is

control large

gratissimum

f reducing the

viding Ocimum

quate storagewith adequate

rices, sources of

rs. These could

of both Federal

rivate agencies.

e that Ocimum

is a profitable

alues of profit

the following

lities should be

um gratissimum

area because it

ment and herb

government to

tissimum trader

hat petroleum

and affordable

duce the cost of

t most of the

ducation. They

be enlightened

pecific area of

processing and

d make their

more profitable

The traders should be encou

agents to form cooperativeaccess to loans, which will

their business thereby enhprofitability.

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Dalziel M.B. (1948). The

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Corresponding Author

Usman J.M

Federal College of Forestry,

Nigeria

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MARKETING STRUCTURE and PERFORMANCE of Ocimum Gratissimum in Selected Markets in Ibadan Metropolis

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