Economics of tomato marketing in Ashanti Region, Ghana

The perishable nature of most agricultural produce and the concomitant need for effective marketing outlets carries along huge economic consequences, especially in developing countries like Ghana. This study examines the determinants of profit in tomato marketing in the Ashanti Region of Ghana. Cross-sectional data collected from a random sample of 200 tomato marketers consisting of 100 wholesalers and 100 retailers were analyzed using descriptive statistics and the multiple linear regression technique of the ordinary least squares. The results show that wholesalers have a higher margin of 99.7 percent, while the retailers have a margin of 75.4 percent. Labour cost, purchase price, transportation cost and selling price run through all the estimated regressions as determinants of marketing profit. The effects of these variables on marketing profit could raise public concern since they have implications on prices received by tomato producers and those paid by final consumers and therefore there is the need for the government to devise policies aimed at stabilizing the local currency.The results also call for policy efforts to completely eliminate illiteracy among tomato traders in Ghana especially in the Ashanti Region. Policies that could enable the retailers to increase their scale of operations are also advocated. Future researchers may also estimate the exact point in the age variable at which retail profit declines and possible antecedents.