VALLEY VIEW UNIVERSITY-TECHIMAN CAMPUS

RESEARCH PROPOSAL ON:ANALYSIS OF THE MARGINS ALONG THE MARKETING CHAIN OF WATER MELON IN

THE NKORANZA SOUTH MUNICIPAL.

BYYENZANYA POUBIL AUGUSTINE

(AGRIBUSINESS DEPARTMENT)

OUTLINE OF PRESENTATION

INTRODUCTIONBACKGROUND AND JUSTIIFICATIONLITERATURE REVIEWPROBLEM STATEMENTAIMS AND OBJECTIVESMETHODOLOGYEXPECTED OUTCOME

WATERMELON

Citrullus lanatus

INTRODUCTIONBACKGROUND

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)

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).

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.

WATERMELON VINE

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).

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.

ACTORS ALONG THE MARKET CHAIN

Producers

Aggregators

Wholesalers

End-users

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.

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.

LITERATURE REWIEWMARKETINGMarketing 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).

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).

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.

MATERIALS AND METHODS

MaterialsStationaryQuestionnaire

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

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.

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

SAMPLE QUESTIONNAIR.Producers

Demographics1.NAME……………………………………………

…………………………………………………………………………………….

2.SEX……………………………………………………………..

3.AGE………………………………………………………………………..

MATERIALS AND METHODS

SAMPLE QUESTIONNAIR.4. Marital Statues………………..…………

…………

5. Educational Background…...........................

.........................

6. Number Of Children (If Any)….…………………

……………

SAMPLE QUESTIONNAIR.PRODUCTION COST7. Land Tenure

a) Self Owned

b) Abunu

c) Abusa

d) Rented

e) If rented how much per season?

SAMPLE QUESTIONNAIR.8. How many acres do you cultivate?.........................

...................................................

9. Cost of land clearing (IF ANY) ………………

………………………………………………………………

10. Cost of plowing ………………………………………………………………………..

SAMPLE QUESTIONNAIR.11. Cost of seed…………………………………..

12. Cost of planting……………………………….

13. Cost of weed control………………………..

14 Do you apply fertilizer?.....................................

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?.........................................

SAMPLE QUESTIONNAIR.MARKETING22. Who are your customers?..............................

a. Aggregators

b. Wholesalers

c. Retailers

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?.......................................................

 

EXPECTED OUTCOMEAt 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.

WORKPLANACTIVITIES

OCTOBER

NOVEMBER

DECEMBER

JANUARY FEBUARY

MARCH

LITERATURE REVIEW

DATA COLLECTION

DATA ANALYSIS

REPORT WRITING

DRAFT SUMISSION

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

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PRESENTATION