ECONOMIC ANALYSIS OF ORANGE FRUIT RETAILING AMONG YOUTH IN AKWANGA AND LAFIA METROPOLIS OF NASARAWA STATE

ECONOMIC ANALYSIS OF ORANGE FRUIT RETAILING AMONG YOUTH IN AKWANGA AND LAFIA METROPOLIS OF NASARAWA STATE

CHAPTER ONE

Introduction

1.1  Background of the study

Agriculture is the backbone of Nasarawa state as well as in Nigeria. Urban economy is regulated by the urban masses and its development often relies on various economic activities they perform and they are mostly dependent on agricultural activities. Horticultural farming is yet one of the major source of generating adequate income. There are various kinds of horticultural crops like fruits, vegetables, spices, nuts, and tuber crops, medicinal and aromatic plants, among others. Fruits and vegetables are seen as a strong part of a healthy and balanced diet and a major part of agricultural production and the global fruit production in year 2018 by selected variety was75.54 million metric tonnes (statista.com). Orangebook.tetrapark.com reported that oranges are cultivated in tropical and subtropical regions around the world. The trees can grow in varieties of soil conditions ranging from extremely sandy to rather heavy clay loams, though the best environment for it best growth is the intermediate soil types. Approximately 70 million tonnes of oranges are produced per year world-wide with about one third of the total produced is processed, while the rest being consumed as fresh fruits. In most cases, producers prefer to sell oranges to the fresh fruits market as their price is normally higher than those sold for processing into various juices.

The fruits are eaten fresh and used for making juice. Orange cultivation predominantly plays a very important role in the socio-economic condition in Lafia. Orange is a seasonal horticultural fruit crop. Oranges are available throughout the year (peak time-winter) and grow on evergreen trees which are about 30 feet high and 20 feet wide. The flowers of the orange are white and blossom in spring, however the fruits appear only by winter. Once the trees are matured it gives fruits for 5-10 years. Lafia is traditionally a horticultural environment due to its unique agro-climatic condition, which permits growing wide range of horticultural crops like various fruits, vegetables, flowers, spices, nuts, tuber crops (Emiola and Fawole, 2007).

In an economy, production and marketing must go hand in hand. Marketing plays an important role to stimulate production, consumption and accelerates the pace of economic development of a country. The horticultural marketing in Nasarawa State is highly decentralized. The marketing of orange is very complex because of its perishable nature, seasonality and bulkiness. Cultivation of orange is more profitable than any other seasonal crops. Marketing of orange in Lafia is largely unorganized and is in the hands of intermediaries such as wholesalers, retail traders, pre-harvester contractors and others (Isitor et al., 2016; Girei et al., 2018).

Large quantities of oranges are used to produce single strength juice, pectins used in the production of jams and jelly pits residue which is fed to livestock. The great potential derivable has not been harnessed. Only a smaller percentage of orange produced find their way to the local orange industry. The production of orange being seasonal and localized to favored agro-climatic conditions coupled with the perishability of the produce pose, several problems on marketing front. Seasonal gluts, distress sale and volatile behavior of price are therefore common trend in all markets during normal production season. Then marketing and transportation of orange and other fruits hurdles in the way of fruit growers of urban areas who are also exploited by middlemen resulting in the low share of farmers in the consumer’s money.

Furthermore, the continue adoption of unorganized marketing practices of orange also lead to high marketing costs, margins and price spread which all combine together to snatch away the economic attraction the fruit holds (Mrema and Rolle, 2002). The neglect of the orange fruit industry is more so, for instance where industry are willing to invest in agriculture, both the government and private sector prefer to invest on food crops in Lafia such as sesame, rice, cassava, yam, etc. that can fetch them short time quick returns. Rather than invest in market of orange, Reasons are orange industry is constraint by many marketing problems. Heavy fruit loses usually occur while the citrus is being transported along marketing chain. At the marketplace the seller also face the problem of spoilage, as the fruits are generally perishable in nature, which is also caused by poor storage/shelf life of the fruits. Aside from these, orange marketers’ inherent socio-economic factors in the marketing chain, also plays prominent role. All these factors as well as the frequent price fluctuations of orange due to its perishable and seasonal nature discourage prospective investors from venturing into orange marketing. This study therefore will examine the viability of marketing of orange and profile the characteristic of marketing of orange in Lafia used as a case study (FAO, 2004).

Orange is listed as being of high priority and has been identified as one of the most cultivated fruit crop in north central Nigeria. Internationally it ranks within the top three cultivated fruit crops. Orange products are rich in vitamins, minerals and dietary fiber, which are essential for normal growth and development and overall nutritional -wellbeing (Economos and Clay, 1999). Locally too, it is a high ranking fruit tree crop which has made the only horticultural research institute in sub-Saharan Africa to devote a whole programme for its research and development. In order of importance orange is ranked first among other fruit crops by farmers (NIHORT, 2000).

1.2 Statement of the Problem 

Certain features that are unique to the industry affect marketing of farm products. These factors include: seasonality of products, perish-ability of products, inelastic demand, production hazards, changes in market demand, large number of small producers, and geographical specialization of the production according to (Girei et al., 2018). In view of the above, the research is to address the following questions.

1.3 Objectives of the study

The objectives of the study include to:

1. examine the socio-economic characteristics of the orange fruits marketers;
2. examine the marketing channel for the orange fruits;
3. determine the profitability of marketing orange fruits;

1.4 Research Questions

1. What is the socio-economic characteristics of the orange fruits marketers;
2. What is the marketing channel for the orange fruits;
3. What is the profitability of marketing orange fruits;

Hypotheses  

1. There is no significant effect of socio-economic characteristics of the orange fruits marketers;
2. There is no significant effect of marketing channel for the orange fruits;
3. There is no significant effect of profitability of marketing orange fruits;

1.6  Significance of the study

This study is very significant. First, little or nothing is known about the economic analysis of orange fruit retailing among youth in akwanga and lafia metropolis of nasarawa state. The study therefore, fits into the quest to unveil the effects of economic analysis of orange fruit retailing among youth in akwanga. It will offer a combination of academic contributions for scholars and researchers, managerial implications for policy makers and practical contributions for practitioners and operators.

Based on the gaps identified, this study seeks to determine the effects of economic analysis of orange fruit retailing among youth in akwanga. The knowledge to be gained from such a study will enable SMEs to understand and focus on implementing marketing practices that can lead their businesses to improved performance. Achieving this will contribute to the reduction of the high SME failure rates and increase SMEs long-term performance and survival.

The study is also very significant as its outcome will spell out the relevance of marketing and the correct marketing practices on the performance of orange fruits enterprises.

1.7  Scope of the study

The study was delimited to economic analysis of orange fruit retailing among youth in akwanga and lafia metropolis of nasarawa state

1.8  Limitation of the study

In every research work, it is likely that the researcher may encounter some limitations. The researcher encountered some challenges during the period of carrying out this research. Some of these challenges include the dearth of materials for a proper and effective research work constituted a major limitation. Again, how to get the true and required information from the respondents through questionnaire also constituted a constraint in the study.

 

ECONOMIC ANALYSIS OF ORANGE FRUIT RETAILING AMONG YOUTH IN AKWANGA AND LAFIA METROPOLIS OF NASARAWA STATE

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