IMPACT OF PRICES OF TOMATOE ON TOMATOE PRODUCTION AND MARKETABILITY

CHAPTER ONE

INTRODUCTION

1. 1. BACKGROUND OF THE STUDY

Agriculture is an important sector in most developing countries. As such, increase in agricultural productivity depends heavily on its marketability so as to improve its vital roles in a national economy. Efficient market does not only link sellers and buyers in reacting to current situations in supply and demand but rather has a dynamic role to play in stimulating consumption of outputs which are essential elements of economic development. Katharina and Stefan (2011) reported that the concept of marketing subsumes a set of different innovative advertising instruments which aim at gaining a large effect with a small budget. This could be achieved through different guerrilla instruments such as ambient, sensation, viral, buzz and ambush marketing which tries to evoke the effect of gaining the attention of a large number of recipients at relatively low cost by means of a surprise effect and a diffusion effect for condoning both consumer behavior and managerial perspectives. Agricultural marketing is defined as the performance of all the activities involved in the flow of agricultural products and services from the initial points of agricultural production until they reach the hands of the ultimate consumers. It is interested in everything that happens to crops after its leaves the farm gate; making decision, taking actions and bearing the responsibility of the action. Agricultural marketing also articulates all processes that take place from when the farmer plans to meet specified demands and market prospects to when the producers finally gets it to the consumers. It also recognizes the mutual independence between farmers and marketing middlemen which is the whole essence of marketing in management decision making. Aminu (2009) pointed out that in a typical vegetable marketing, retailers were observed to sell both tomato and onion at the same time in addition to other vegetables like hot pepper, sweet pepper, cabbage, salad and in some cases, chilies pepper. The crops were sold in heaps, small baskets and metal containers of varying weights. The marketing of these crops which does not require much capital, however, essentially require experience and good rapport with the commission agents and farmers. Tomatoes marketing begin at the farm gate. Olukosi and Isitor (2004) explained that the marketing task involves transferring goods from producers to consumers. It is the marketing function that ensures that consumer acquires the product in the form, places and time desired. The basic trend in agricultural production is increase in the value added off-farm activities through post harvest processing and marketing leading to decrease in the percentage of the final consumer reaching the farm gate. Marketing stimulates production, enterprise and specialization, hence resulting in an improved productivity of all sectors of the national economy. As the economy of a nation grows, the gap between farmers and consumers widened and the task of marketing becomes more complex (Abbott, 1987).

1. 1. STATEMENT OF THE GENERAL PROBLEM

The sporadic rise in the price of the various species of tomatoes in Nigerian markets has been an unfortunate occurrence as it has increased the hardship in the land as most Nigerians can hardly afford it as a result of the current economic recession currently underway in the country.

1. 1. AIMS AND OBJECTIVES OF THE STUDY

The main aim of the study is to examine the impact of tomato prices on tomato production and marketability in Nigerian markets using jos in plateau state as the case study. Other specific objectives of the study include are to;

1. To examine the influence of pricing on tomato marketability and production.
2. To examine the relationship between tomato pricing and production/marketability.
3. To examine the current challenges facing effective tomato production/marketability.
4. To recommend ways of improving tomato production and marketability.
   1. RESEARCH QUESTIONS

1. What is the influence of pricing on tomato marketability and production?
2. What is the relationship between tomato pricing and production/marketability?
3. What are the current challenges facing effective tomato production?
4. What are the ways of improving tomato production and marketability?
   1. RESEARCH HYPOTHESIS

H0: There is no significant impact of tomato pricing on production and marketability.

H1: There is a significant impact of tomato pricing on production and marketability.

1. 1. SIGNIFIANCE OF THE STUDY

The study would be of immense importance to the development of the agricultural sector especially the production of tomato whose price has skyrocketed in recent time. The study should also benefit students, researchers and scholars who are interested in developing further studies on the subject matter.

1. 1. SCOPE AND LIMITATION OF THE STUDY

The study is restricted to the impact of tomato prices on tomato production and marketability in Nigerian markets using jos in plateau state as the case study.

Limitation of the study

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.