Profitability Analysis and Efficiency of Ginger Marketing in Benue State, Nigeria

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Profitability Analysis and Efficiency of Ginger Marketing in Benue State, Nigeria

Gege Juliana Nguwasen, Ocholi, Ali*
Department of Agribusiness, Joseph Sarwua Tarka University, Makurdi, Nigeria
*Corresponding author’s
Received: 02 June 2023; Revised: 22 June 2023; Accepted: 29 June 2023; Published: 29 July 2023


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Abstract: The study examined the profitability and efficiency of Ginger Marketing in Benue State Nigeria. Multistage sampling technique was used in selecting 256 respondents. Data were obtained from primary source with well-structured questionnaire and analyzed using descriptive statistic, gross margin and marketing efficiency analysis. Results from the socio-economic characteristics showed that 35.2% were male and 64.8% were female with mean active workforce of 46.82 years; majority of ginger marketers (77.3%) were married and the mean household size was 9; ginger marketers had a mean marketing experience of 10years and the mean formal education attained by ginger marketers was 7 years indicating that most ginger `marketers had education. The gross margin was N98.36 and N151.78 for wholesalers and retailers respectively. The result further showed that marketing efficiency was 46.58% for retailers and 7.96% for wholesaler in the study area. Ginger marketers are faced with the problem of heavy tax and high cost of transportation. The study showed that ginger marketing is profitable and efficient in the study area. It is recommended that tax should be properly conducted to reduce multiple taxation and good roads should be provided to reduce transport cost.

I. Introduction

Ginger (Zingiberofficcinale Roscoe) belongs to the family Zingiberaceae and is an important commercial crop grown for its aromatic rhizomes. It is one of the oldest and renowned commercial spices esteemed for its aroma, flavour and pungency. Ginger is a herbaceous spice grown extensively around the World for its pungent aromate rhizome (Erinle, 1988, Nmedu and Marcus, 2012; Abah 2019). It is an important commodity in world trade (Ajibade and Dauda, 2005) and is used in Asia and around the World as a spice and for medicinal purposes (Asumagbaet al, 2006, Jakes, 2007, Egbachina and Enujeke, 2013; Abah 2019), its acceptance and use are on the rise in Nigeria due to heightened health consciousness.
Northern Nigeria is the largest user of ginger in the country (Abahet al., 2008; Gege, 2021). In Nigeria, ginger is mainly cultivated in Kaduna State (Obinatu, 2003; Nmadu and Marcus, 2012; Makarauet al., 2013; Ayodele and Sambo, 2014). Yields of 35 to 50 tons/hectare can be obtained under good agronomic practices (Asumughaet al., 2006; Jakes, 2007; Gege, 2021). Out of the estimated world annual ginger production in the 1980s of 50,000 tonnes (dry weight) of ginger, Nigeria accounted for 15,000 tonnes. In 2000, the World production was estimated at 717,461 tonnes from a land area of 296,650 hectares mainly from Nigeria, India, China, Indonesia, Bangladesh, Thailand, The Philippines and Jamaica. In terms of area under ginger cultivation, Nigeria ranks first with 56.23% of total world area under cultivation. This is followed by India (23.6%), China (4.47%), Indonesia (3.37%) and Bangladesh (2.32%) (Asumughaet al., 2006; Gege, 2021).

In Nigeria, Benue State produces about 500 tonnes of fresh black ginger annually (Gbenga, et al 2019). It is expected that the figure has increased in recent times.
The economic value of ginger (ZingiberOfficinale Roscoe) centresaround its uses in the preparation of medicines, foods and in the manufacturing of beverages, pharmaceuticals and perfumes. In foods, ginger is used to flavor bread, cakes, biscuits, usages and cookies. It is also blended with other spices for household uses. Ginger ale, ginger beer, and ginger tea are among the beverages produced with it (Rodriguez, 1971, Egbuchua and Enujeke, 2013, Olubumiet al. 2013). It is also used to some extent in perfume products (Currement 2021).

With the emphasis currently being placed on local sourcing of raw materials in Nigeria, it is envisaged that in the very near future, ginger will be industrially utilized on a larger scale for the manufacture of an assortment of perfumes, confectionery, alcoholic drinks and pharmaceuticals.