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1. VALLEY VIEW UNIVERSITY-TECHIMAN
CAMPUS
RESEARCH PROPOSAL ON:
ANALYSIS OF THE MARGINS ALONG THE
MARKETING CHAIN OF WATER MELON IN
THE NKORANZA SOUTH MUNICIPAL.
BY
YENZANYA POUBIL AUGUSTINE
(AGRIBUSINESS DEPARTMENT)
2. OUTLINE OF PRESENTATION
INTRODUCTION
BACKGROUND AND JUSTIIFICATION
LITERATURE REVIEW
PROBLEM STATEMENT
AIMS AND OBJECTIVES
METHODOLOGY
EXPECTED OUTCOME
4. INTRODUCTION
BACKGROUND
Food marketing is a very important but rather neglected aspect
of agricultural development. In developing countries, more
emphasis is usually placed on policies to increase food
production with little or no consideration on how to distribute
the food produced efficiently and in a manner that will
enhance increased productivity(Aidoo, R et al 2012)
5. INTRODUCTION cont…
There is a growing recognition among development
agencies and governments that, if agricultural produce
markets were efficient, the bargaining position of farmers
with intermediate traders would be strengthened, their
income would increase and less produce would go to
waste.
In addition, more efficient markets would help to lower
transaction costs, increase the volume of trade, lower food
prices and offer greater food security, leading to greater
benefits for the economy as a whole (FAO, 2003).
6. JUSTIFICATION
Marketing of agricultural produce in most African
countries has not yet achieved the necessary degree of
competitiveness and transparency to ensure fair market
prices for small-scale farmers, processors and consumers
(Peterson, 2004).
The research seeks to look at the possible ways of helping
actors on the water melon marketing chain to follow the
right channel (s) to maximize profit.
This research therefore seeks to critically analyze the
prevailing margins along the marketing chain of
watermelon and decide on appropriate recommendations
to policy makers for consideration.
8. PROBLEM STATEMENT
Market inefficiencies cause a net drag on the system
leading to high prices and lack of growth. As a
result of these conditions Ghana and other
developing nations have been an ideal market for
cheap imports in a liberalized global market
environment (Meenakshi, 2004).
There are constraints related to access to production
resources and markets (Minot, 1986).
9. PROBLEM STATEMENT
Based on the above challenges cited , this research is
to analyze into detail the margins, cost and level of
efficiency
actors in the water melon industry
encounter in performing marketing functions and also
look at the various loses made and their effect on each
actor.
10. ACTORS ALONG THE MARKET CHAIN
End-users
Wholesalers
Aggregators
Producers
11. GENERAL OBJECTIVE
The main objective of the research is to examine
the costs, returns and efficiency levels obtained by
key players in the water melon marketing chain.
Also to assess the loses made by each player on
the chain.
12. SPECIFIC OBJECTIVES
To estimate the volume of water melon handled by
key players in the water melon marketing chain
To determine the marketing costs incurred and
margins obtained by major players along the water
melon marketing chain, and
To assess the level of marketing efficiency at each
stage of the water melon value chain.
13. LITERATURE REWIEW
MARKETING
Marketing of agricultural products consists primarily of
moving products from production sites to points of final
consumption. In this regard, the market performs exchange
functions as well as physical and facilitating functions.
The exchange function involves buying, selling and pricing.
Transportation, product transformation and storage are
physical functions, while financing, risk bearing and
marketing information facilitating marketing (Branson and
Norvell, 1983).
14. LITERATURE REVIEW
It is generally believed that small farm agriculture
plays a central role in economic development,
both in supplying a significant portion of the
domestic food crop supplies and in generating
income for low-income families.
But on the other hand there are constraints related
to access to production resources and markets
(Minot, 1986).
15. LITERATURE REVIEW
Markets also have an influence on income distribution, food
security, and other important development objectives.
Despite its importance, as indicated above, marketing is
given little attention or credence in the developing
countries.
17. MATERIALS AND METHODS
Methodology
Sample size will be 60 respondents which
will include
15 farmers each from two communities made
up of Koforidua and Bonsu.
5 aggregators
5 wholesalers
20 retailers
18. MATERIALS AND METHODS
Sampling technique
Purposive , convenience and snowball sampling technique
will be employed in the collection of primary data.
Types of data
primary data will be collected from the field of survey
Secondary data will be from available data e.g.
Nkoransa district MOFA office, journals and other
relevant literature.
19. MATERIALS AND METHODS
The data collected will be analyzed using descriptive and
inferential statistics. The descriptive statistics comprises
the use of frequency distribution tables, percentages and
pie charts. Estimates of marketing margins will be
obtained through gross margin analysis. The expression
below will be used to estimate Gross Margin for the
various water melon traders along the water melon value
chain.
Gross Margin = Total Revenue – Total Variable Cost
23. SAMPLE QUESTIONNAIR.
8. How many acres do you cultivate?.........................
...................................................
9. Cost of land clearing (IF ANY) ………………
………………………………………………………………
10. Cost of plowing ……………………………………
…………………………………..
24. SAMPLE QUESTIONNAIR.
11. Cost of seed…………………………………..
12. Cost of planting……………………………….
13. Cost of weed control………………………..
14 Do you apply fertilizer?.....................................
25. SAMPLE QUESTIONNAIR.
15. If YES what kind?...................................................................
16 what quantity?..............................................................................
17 How much does it cost you?.........................................................
18. Do you apply pesticide?
YES/NO……………
19. If YES what quantity?..................................................................
20. How much does it cost you to apply? ……………………………
21 How much does it cost you to harvest?.........................................
27. SAMPLE QUESTIONNAIR.
d. Consumers
23. Do you store after harvest.
YES/NO
24. If YES at what cost? …………………….
25. How much do you realize from the sale of your
produce?.......................................................
28. EXPECTED OUTCOME
At
the end of the research is foreseen to
know which actor in the chain makes the
most profit.
And also highlight the
challenges and
cost burden at the various chains.
30. REFERENCES:
Peterson, E. B. (2004) “A Comparison of Marketing Margins Across Sectors, Users, and
Regions”, Paper Presented at the 7th Annual Conference on Global Economic Analysis,
June 17 - 19, 2004, Washington, D.C.
Peterson, E. B. (2004) “A Comparison of Marketing Margins Across Sectors, Users, and
Regions”, Paper Presented at the 7th Annual Conference on Global Economic Analysis,
June 17 - 19, 2004, Washington, D.C.
Kohls, R. L. (1985) “Marketing of Agricultural Products”, Macmillan Publishers, New
York, pp. 83
FAO (1996) “Food for consumers: marketing, processing and distribution”, Technical
background document presented at the World Food summit, 13-17 Nov, 1996, Produced
by: Economic and Social Development Department, Food and Agriculture Organization
of the United Nations (FAO), Rome, Italy.
Olukosi, J. O. and Isitor, S. V. (1990) “Introduction to Agricultural Market and Price;
Principles and Applications”, Agitab Publishers, Zaria. Pp 34
