Analysis of Costs and Return on Watermelon Marketing in Selected Markets in Adamawa State, Nigeria

Abstract

The study looked at the costs and returns of watermelon marketing in Adamawa State, Nigeria. Respondents were chosen using multi-stage sampling techniques. Data for the study were gathered from primary sources via questionnaires distributed to a sample of 41 wholesalers and 149 retailers. The analytical tools used were descriptive statistics, net marketing return, and marketing efficient model. The average monthly sales recorded by wholesalers and retailers were ₦20,962,620 and ₦7,281,600, respectively. Their monthly net returns were ₦4,490,300 and ₦971,131.5. It also revealed that watermelon marketing was inefficient, with marketing scores of 27.3% for wholesalers and 15.4% for retailers, respectively. The return on investment (ROI) for wholesalers and retailers was ₦0.21 and ₦0.133, respectively. Low capital investment, insufficient transport facilities, price fluctuation, poor handling and processing, insufficient storage facilities, bulkiness and perishability of the fruits were identified as problems. According to the study, the government should expand its anchor borrowers and provide low-interest credit to marketers, and marketing associations should encourage their members to adopt strategies that will reduce losses from fruit spoilage.