MARKETING STRUCTURE AND PERFORMANCE OF Ocimum gratissimum IN SELECTED MARKETS IN IBADAN METROPOLIS
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Usman J.M 2Adeoye I.B. and 2Adebisi-Adelani O J.M, Federal College of Forestry, P.M.B. 5087, Ibadan, Nigeria 2National Horticultural Research Institute of Nigeria, Nigeria, PMB Ibadan.
ABSTRACT The study was carried out within Ibadan metropolis to determine the marketing analysis of Ocimum gratissimum in the selected markets. The data were collected by the use of questionnaire. Data were arkets. collected from three market locations which were Bode, Aleshinloye and Dugbe markets. Twenty respondents were sampled from each market based on the population of the people involved in Ocimum gratissimum trading. The result shows that more female (93.3%) than males (6.70%) were involved in Ocimum gratissimum marketing. The marketing efficiency for Dugbe, Aleshinloye, and Bode 1.48, 1.64, and 1.59 respectively, showing that marketing of Ocimum gratissimum was efficient in market locations. For the mode of price determination, tying the Ocimum gratissimum in bundles accounted for 66.7% while 33.3% claimed that they determined the price through association. The major challenges facing Ocimum gratissimum trading in the study area include price fluctuation, inadequate supply, poor transportation system from rural area to the urban centres, inadequate finance, rapid spoilage and low demand during rainy season. Based on finding it was recommended that adequate storage facilities should be provided so as to reduce spoilage and thereby improving the shelf life of Ocimum gratissimum. The trader should be encouraged to form cooperative societies so as to have access to . loans, which will lead to expansion of their trading business thereby increasing their profitability. expansion KEYWORDS: Ocimum gratissimum, Marketing analysis, Ibadan Metropolis. INTRODUCTION Ocimum gratissimum is a crop with a wide range of use as a medicinal plant and as a spice (Obembe and Agboola, 2008). It is a valuable multipurpose plant which belongs to the family Lamiaceae, and is distributed in tropical and warm temperature regions. Extracts of the plant contains antimicrobial tracts activity (Adebolu et al., 2005), antibacterial ., activity (Nakamura et al., 1999), antifungal activity ., (Lemos et al., 2005), antimalarial activity (Ezekwesili et al., 2003), and antiprotozoal activity ., (Holetz1 et al., 2003). Ocimum gratissimum is usually referred to as Efinrin, is a perennial plant , and widely distributed in tropical and warm temperate region and propagated by seed. The seeds are broadcast on a prepared germination bed and covered with propagators to generate heat for easy germination (Dalziel, 1948). It grows from 30-130cm tall, with opposite light green silky 130cm leaves 30-11cm long and 1-6cm broad. In spite of 6cm its enormous economic and industrial potentials, there is little research work on the mark marketing of the crop. It is a fact that one important level in the production of goods and services is the market. The main reason why production in respect to agriculture is still taken its best, form and shape is that there is a market which serves as cha channel for reaching out to final consumers. The aspect of market or marketing cannot be over over-emphasized as it is the medium for distribution. The marketing of Ocimum gratissimum supply food supplement and herbs for medicinal purposes. The direction of the marketing occur both in rural and urban area because of it uses. The trade is characterized by the seller and buyer, Ocimum gratissimum is usually sold in the open market by direct bargaining between the buyer and seller to ensure high level of economic satisfaction. atisfaction. Marketing channels are the paths through which a commodity moves or follows from production to consumption. It could be single stage channel or a multi-stage channel. Marketing channel is the link stage between supply and consumption of a product. Marketing functions are specialized activities performed in the marketing process. The unique role of agricultural marketing is that it acts as a link between production and consumption point. There is need to investigate the marketing of Ocimum gratissimum within Ibadan, since their
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The computation of the Gini Coeffic Coefficient has the following relationship: GC = 1- XY Where, GC = Gini Coefficient X = Percentage of sweet potato sellers. Y = Cumulative percentage of income from the sellers. = Summation RESULTS AND DISCUSSION
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Table 1: Frequency distribution of the respondents Market Frequency Percentage Dugbe 20 33.3 Aleshinloye 20 33.3 Bode 20 33.3 Total 60 100.0 easy to handle ones were being carried out by the Table 2 shows the socio-economic variables. The economic female marketers. On age distribution, a good result shows that majority of the Ocimum number of them were within age 31 31-50 years. For gratissimum traders were female (93.3%). This is the marital status 63.3% were married. The al in agreement with earlier work by Usman et al. educational level shows that 13.3% had no formal (2007) on marketing analysis of Miraculous berry education, 51.7% had primary education while 35% (Thaumatococcus danialli Benn.) in Ibadan which had secondary education. This means that the showed that 99.2% of the sellers were female, but Ocimum gratissimum traders in the study area were in contrast with Oluyole and Usman (2006) who educated. The implication is that the ability to read found that 92.7% of male were involved in cocoa and write would enhance them to easily adapt to marketing in Odeda Local Government Area of new innovation and expose them to market Ogun State. This means that more tedious and information which would lead to more efficient labour demanding agricultural products marketing marketing activities. were in the hand of males while less tedious and Table2: Socio-Economic Variables of respond Economic respondents Ocimum gratissimum traders
Variable Gender Male 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 Frequency 4 56 60 0 3 18 21 18 60 0 38 10 12 60 8 31 21 0 0 0 0 60 Percentage 6.70 93.30 100.0 0.00 5.00 30.00 35.00 20.00 100.00 0.00 63.30 16.70 20.00 100.00 13.30 51.70 35.00 0.00 0.00 0.00 0.00 100.00
Table 3 shows the budgetary analysis per bundle for Ocimum gratissimum. The marketing efficiency for Dugbe, Aleshinloye and Bode markets were 1.48, 1.64and 1.59 respectively. This means that Ocimum gratissimum
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traders obtained in the study was 0.589. This implies that Ocimum gratissimum market is imperfectly competitive in nature. This is in agreement with earlier work on market structure of lettuce in Ibadan by Usman et al (2010) which shows the Gini Coefficient of 0.562. The reason for imperfection of Ocimum gratissimum trading in the study area might be as a result of the fact that no one sells the production al alone. The traders combined many other vegetables such as dry peppers, onion, melon Irvingia wombulu etc. These traders form association through which price per measure is determine and other marketing information are disseminated to members.
Table 4: Table Computation of Gini Coefficient for Ocimum gratissimum Marketing in Ibadan Metropolis ble Sales (N) Per day Number of sellers % of Sellers (X) Cumulative frequency Cumulative % of sellers Total Sales (N) 4550 3250 4900 3150 3350 3200 % of Total sales 20.31 14.51 21.88 14.06 15.00 14.20 Cumulative % of total sales (Y) 20.31 34.82 56.70 70.76 85.76 100 XY
1-200 23 38.33 23 201-400 15 25.00 38 401-600 12 20.00 50 601-800 5 8.33 55 801-1000 4 6.67 59 >1000 1 1.67 60 Gini Coefficient = 1-0.411 = 0.589
Table 5 shows the mode of price determination i.e. market conduct. It was only at Bode market that herbs sellers association determines the price to be sold to the consumers. The reason being that they sold Ocimum gratissimum as one of the Table 5: Mode of Price Determination Mode Haggling By sellers Association By putting them in heaps By tying then in bundles Total
components of medicinal herbs in addition to those dicinal who demand for it as spice for soap condiments. The remaining two markets (66.7) determined the price by tying them in bundles.
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Table 6 Constraint facing the business of Ocimum gratissium trading Constraints Price fluctuation Inadequate supply Rapid spoilage Low demand Poor transportation Inadequate finance Total Percentage 4.00 15.00 30.00 6.00 30.0 15.0 100.00 The traders should be encouraged though extension agents to form cooperative societies so as have access to loans, which will lead to expansion of their business thereby enhancing the increase in profitability. REFERENCES Adebolu T T, Oladimeji S A, 2005, Antimicrobial activity of leaf extracts of Ocimum gratissimum on selected diarrhoea causing bacteria in southwestern Nigeria. Afr J. of Biotechnol Vol. 4 (7), pp. 682 l 682684. Dalziel M.B. (1948). The useful plant of West Tropical Africa. Pp. 512. Ezekwesili CN, Obiora KA, Ugwu OP, (2004). Evaluation of Anti- Diarrhoeal Property of Crude Aqueous Extract of Ocimum gratissimum L. (Labiatae) In Rats. Biokemistri 16(2):122-131. Holetz FB, Nakamura TU, Filho BPD, Cortez akamura DAG, Daz JAM, Nakamura CV, (2003). Effect of Essential Oil of Ocimum Herpetomonas samuelpessoai, Acta Protozool (2003) 42: 269 Protozool. 276 Lemos JA, Passos X S, Fernandes OFL, Paula JR, Ferri PH, Souza LKH, Lemos AA, Silva MRR, (2005). Antifungal activity from Ocimum 2005). gratissimum L. towards Cryptococcus neoformans, Mem Inst Oswaldo Cruz, Rio de Janeiro, Vol. 100(1): 55-58. Nakamura CV, Nakamura TU, Bando E, Melo AFN, Cortez DAG, Filho BPD. (1999). Antibacterial Activity of Ocimum gratissimum L. Essential Oil, Mem Inst Oswaldo Cruz, Rio de Janeiro, Vol. 94(5): 675-678. 678.
CONCLUSION AND RECOMMENDATION This study shows that there was some degree of concentration with the Gini coefficient of market structure is 0.589 in the Ocimum gratissimum in Ibadan. This shows that the market structure is imperfect because few traders control large proportion of sales. In Ocimum gratissimum marketing, a more effective way of reducing the degree of concentration is by providing Ocimum gratissimum traders with adequate storage facilities, providing the traders with adequate marketing information as regards prices, source of sources supply and availability of the buyers. These could be done through extension agents of both Federal and State Governments and also private agencies. From the findings, one can conclude that Ocimum gratissimum marketing in Ibadan is a profitable venture. This is based on the values of profit re. margin per bundle of the product. Based on the finding of the study the following recommendations are made: Adequate storage facilities should be provided for the Ocimum gratissimum traders in the study area beca because it serves as food supplement and herb for the inhabitants. There is also need for government to support Ocimum gratissimum trader by making sure that petroleum products are available and affordable by motorist so as to reduce the cost of transportation. The study shows that most of the traders had primary education. They should be therefore be enlightened and educated about specific area of marketing such as processing and packaging that could make their Ocimum gratissimum more profitable and efficient.
SEDInst 2011. All rights reserved This work by Science Education Development Institute is licensed under a Creative Commons Attribution 3.0 Unported License License.
SEDInst 2011. All rights reserved This work by Science Education Development Institute is licensed under a Creative Commons Attribution 3.0 Unported License License.