Advances in Agriculture, Sciences and Engineering Research

http://www.ejournal.sedinst.com Science Education Development Institute, 2011 Printed in Nigeria

Volume 1 (Issue 2) Oct: 24 - 29, 2011

MARKETING STRUCTURE AND PERFORMANCE OF Ocimum gratissimum IN SELECTED MARKETS IN IBADAN METROPOLIS
1

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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Advances in Agriculture, Sciences and Engineering Research

major production centers markets are in western and eastern part of Nigeria. Marketing plays a vital role in the production process because a well organized efficient market structures ensures profitable returns to the Ocimum gratissimum um (Efinrin) producers and reasonable low prices to consumers. Different level of costs is incurred however along the marketing channel and overall cost determines what the final consumer pay for a given quantity of the goods concerned. The structure, conduct and performance are tructure, interrelated factors that determine the characteristics of the organization of the market which seems to influence the nature of competition and pricing within the market. The Objectives of the study are: To examine the he socio-economic socio characteristics of the Ocimum gratissimum sellers. To determine the profitability and marketing efficiency. To compute market conduct of Ocimum gratissimum in the study area. METHODOLOGY The study was carried out in Ibadan Metropolis. It is located in Southwest Nigeria, 120Km inland from Lagos and is a prominent transit point between the coastal region and the arrears to the north. Ibadan, capital city of Oyo State, Nigeria is made up of eleven local government areas. At independence, Ibadan was the largest and the most dan populous city in Nigeria and the third in Africa after Cairo and Johannesburg. It is Located approximately on longitude 30oS, 54oE of the Greenwich meridian and latitude 70W, 23N of the equator at a distance of about 154km North-East of Lagos. Ibadan consists of eleven local government areas with a population of 2,550,593 people (National Population Census, 2006), where majority are traders. Ibadan had been the centre of administration of the old Western Region, Nigeria since the days of the British Colonial rule, and parts e of the city ancient protective walls still stand to this day. The principal inhabitants of the city are the Yoruba people, with its strategic location on the railway lone connecting Lagos to Kano, the city is a major center for trade in Ocimum gratissimum, pepper tomato onion leafy vegetables and spices. The main industries in the area include the processing of ustries agricultural products. Data were collected by a cross-sectional survey of sectional Ocimum gratissimum sellers in the study areas. These were collected by the use of well structured questionnaire which were self administ administered with the assistance of enumerators. In conducting this research, 60 questionnaires were distributed to three randomly selected markets. The markets are: Dugbe, Aleshinloye and Bode market. The data were collected through personal interview with traders. An interview schedule was designed to ers. elicit information from the traders who has problems in filling the questionnaire. A sampling survey is known to be the most suitable means of generating data since new data is required. The sampling technique in this study is random sampling technique using structured questionnaire for data collection. Descriptive statistics such as percentage, frequency distribution were used to analyze the socio socioeconomic characteristics of the respondent. The marketing and the gross margin models were used to measure the relative profitability of Ocimum gratissimum trade in the study area. The following models used by Okunmadewa et al., (2000) were adopted for the analysis. Gross margin = Total revenue cost price Profit margin = Gross margin Total marketing cost Marketing Efficiency = Total Revenue Total marketing cost Total Marketing Cost = Cost price + Cost marketing function Gini Coefficient was used to estimate the degree of concentration ratio for the Ocimum gratissimum tion marketers across the study area. This was used to measure the relative degree of income distribution among Ocimum gratissimum sellers, thus measuring income inequality. The range of Gini Coefficient ranges between zero and unity. Closer proximity to unity implies greater degree of inequality, hence, higher concentration (Todaro, 1983). Coefficient greater than 0.35 would indicate inequality distribution (Dillion and Hardaker, 1993).

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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Advances in Agriculture, Sciences and Engineering Research

Table 1 shows the sampling size of the respondents. Twenty respondents each were sampled from each market making a total of sixty respondents. The sampling size was the function of the population of Ocimum gratissimum sellers in the selected markets.

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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Advances in Agriculture, Sciences and Engineering Research

marketing in the study area were efficient since the value was more than one. This compares favourably with Usman et al. (2005) who found Table 3: Budgetary analysis Ocimum gratissimum marketing Cost price Selling price Marketing cost Market N N N Dugbe 900.00 1450.00 80.00 Aleshinliye 100.00 1800.00 100.00 Bode 800.00 1350.00 50.00 Total 2700.00 4600.00 230.00 Ocimum gratissimum Market Concentration The Ocimum gratissimum market concentration was determine by means of Gini Coefficient. Table shows that 38.33% (1-N200 per day) of Ocimum N200 gratissimum sellers accounted for 20.31% of the total daily sales, 25.0% (N201-N400 per day) N400 accounted for 14.51% of the total daily Sles, 20.0% aily (N401-N600 per day) accounted for 21.88% of the N600 total daily sales, 8.33% (N601-N800 per day) accounted for 14.06% of the total daily sales, 6.67% (N801-1000 per day) accounted for 15.0% 1000 of the total daily Sales while 1.67% > N1000 per day) accounted for 14 29% of total daily sales. The ) result of Gini Coefficient for Ocimum gratissimum that the marketing efficiency of Irvingia wombulu in different marketing locations in Iba Ibadan ranges from 1.21 to 1.58.

Gross margin N 550.00 800.00 550.00 1900.00

Profit margin N 470.00 720.00 500.00 1690.00

Marketing Efficiency 1.48 1.64 1.59 4.71

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

38.33 63.33 83.33 91.66 98.33 100.00

0.078 0.087 0.113 0.059 0.057 0.017

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.

Percentage 0.00 33.00 0.00 66.70 100.00

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Advances in Agriculture, Sciences and Engineering Research

Table 6 shows the constraints facing the Ocimum gratissimum traders in the study area. The result shows the rapid spoilage constitutes the highest problems they faced. This is as result of poor storage facilities in the market areas. Other problems include inadequate supply (30.0%), low demand especially during the rainy season (6.00%) e and price fluctuation (4.00%). There is low demand during rainy season because some people do plant the Ocimum gratissimum around their houses which can be harvested for use rather than going to the market to buy it.

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.

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Advances in Agriculture, Sciences and Engineering Research

Obembe OO1 and Agboola DA (2008): Seed pretreatments enhance germination in Occimum gratissimum (lameaceae) The Journal of American Science, 4(3), 2008, ISSN 1545-1003, 1003, http://www.americanscience.org Okunmadewa F.Y. Mafimisebi T.E. and Adebayo S.K. (2000): Comparative Profitability of Wholesale and Retail sun-dried meat trade in Ibadan Metropolis. Journal of Technology and Education in Nigeria. Vol. 5 No. 1. P. 5-11. Olayemi J.K. (1999): Improved Marketing a ): strategy for increased production. The Nigeria Experience. Journal of Agricultural Economics Economics. Oluyole K.A. and Usman J.M. (2006): Assessment of Economic Activities of Cocoa Licensed Buying Agents (LBAs) in Odeda Local Government Area of Ogun State, Nigeria. Akoka Journal of Technology and Science Education. Vol. 3. No. 1. pp.130 pp.130-140. Usman J.M., Famuyide O.O. and Adu A.O.(2005): Marketing Performance of Irvingia wombulu in different Market Locations in Ibadan, Nigeria. In: Sustainable Forest Management in Nigeria: Lessons and Prospects. Proceedings of the 30th Annual Conference of the Forestry Association of Nigeria held in Kaduna, Nigeria. 07 07-11 November 2005. Edited b L. Popoola, by Mfon P. and Oni P.I. Pp. 543 543-551. Usman J.M., Adebisi-Adelani O., Olomola A., Adelani Adeoye I.B., Akoun J., Sobayo R.A. Abiola I.O. and Adams B.A. (2007): Marketing Analysis of Miraculous Berry (Thaumatococcus Thaumatococcus danielli Benn. in Ibadan. In: Hort Horticulture and Nigeria Millennium Development Goals. Proceedings of 25th Annual Conference of Horticultural Society of Nigeria, held at National Horticultural Research Institute, Ibadan. 4th 8th November, 2007. Edited by V.O. Olufolaji and V.C. Umeh. Pp. 24-27. Received for Publication: 13/0 3/08/11 Accepted for Publication: 04/ /10/11 Corresponding Author Usman J.M Federal College of Forestry, P.M.B. 5087, Ibadan, Nigeria Email: usmanj05@yahoo.com

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