Structure and efficiency of onion marketing in Katsina State, Nigeria

Abstract

This research investigated the market structure and efficiency of onion marketing within Katsina State, Nigeria. A multi-stage sampling approach was utilized to gather primary data through structured questionnaires from 335 participants, including 112 producers, 91 wholesalers, and 132 retailers from six key markets: Ajiwa, Dan Nakola, Danja, Katsina, Daura, and Funtua. The analysis employed descriptive statistics, the Gini Coefficient, and Acharya's Marketing Efficiency model. Findings indicated that the onion marketing sector is predominantly male (88.0%), with participants mostly in the economically active 21-40 age range (70.4%), averaging 37.7 years old. Most respondents (89.0%) were married, possessed low formal education levels (71.3% with only informal or primary education), and had an average household size of nine. Gini Coefficient analysis revealed a moderate to high market concentration, with producers experiencing the highest concentration (Gini = 0.539), followed by retailers (Gini = 0.500), while wholesalers operated in a highly competitive environment (Gini = 0.276). The average Marketing Efficiency (MME) was 1.24, with Yar Kutungu (Katsina) identified as the most efficient market (MME = 1.32) and Dan Nakola as the least efficient (MME = 1.17). The study concludes that while onion marketing offers structural profitability for producers, considerable structural disparities remain. It recommends bolstering producer cooperatives, upgrading market infrastructure, and improving retailer capacity through specialized training.