Analysis of Logistical Efficiency of Tomato Distribution from Markets in Northern Senatorial District, Kaduna State to Different Parts of Nigeria

Stephen A. Tolufashe, Musa I. Jaro, Shehu Abbas

Abstract


This study examined the logistical efficiency of tomato distribution from markets in the Northern Senatorial District of Kaduna State to various parts of Nigeria. Using Ullman's Theory of Spatial Interaction and the Theory of Demand and Supply, questionnaires were administered to marketers, intermediaries, drivers, channel loaders, and consumers, with a sample size of 400. The analysis revealed several factors hindering efficiency, including gasoline price instability, harassment by law enforcement, extortion at checkpoints, poor road conditions, and a lack of storage facilities. These challenges lead to delays, product spoilage, and increased costs for consumers. Flow line maps indicated that tomatoes primarily flow to South Western states like Lagos and Ogun. The study found significant price variations among different markets, with Lamban Zango having the highest cost per basket at ₦4,900 and the highest net marketing margin of ₦700. This was attributed to its proximity to urban centers and high population areas. On the other hand, Makarfi had the lowest tomato price at ₦2,900 per basket, with a lower return on investment of 0.03 compared to Lamban Zango's 0.14, indicating lower profitability. Overall, tomato marketing in the study area was deemed highly profitable, with efficient gross margin results. Recommendations included government intervention to stabilize gasoline pricing, standardize taxation, improve law enforcement training and remuneration, and address security concerns. These measures were seen as essential for enhancing efficiency in tomato distribution not only from the Northern Senatorial District but also across Nigeria.


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