International Journal of Innovation and Applied Studies
ISSN 2028-9324 Vol. 31 No. 2 Dec. 2020, pp. 258-266
© 2020 Innovative Space of Scientific Research Journals
http://www.ijias.issr-journals.org/
Corresponding Author: Moomin Abu 258
Profitability of vegetable marketing in Ghana: The case of urban and semi-urban
marketeers in the Upper West Region
Moomin Abu
1
, Issah Kpanealuu Mohammed
1
, and Benjamin Tetteh Anang
2
1
Department of Horticulture, Faculty of Agriculture, University for Development Studies, Tamale, Ghana
2
Department of Agricultural Economics and Extension, Faculty of Agriculture, University for Development Studies, Tamale,
Ghana
Copyright © 2020 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
ABSTRACT: This study assessed the economics of vegetable marketing in urban and semi-urban markets in the Upper West
Region of Ghana to identify differentials in profit margins as well as the constraints marketeers face. Mixed method research
design was adopted for the study which involved a survey, focus group discussions, and personal observations. Multi-stage
sampling and probability proportional to size sampling techniques were used to select the marketeers. One hundred and
ninety-six (196) vegetable marketeers comprising 153 urban and 43 semi-urban marketeers were sampled. Gross margin
analysis was used to estimate costs and returns while a profit function was used to estimate net profit of the respondents. The
results showed that urban marketeers had higher gross margin and net profit per unit order compared to semi-urban
marketeers. The urban vegetable market was more competitive but generally marketeers seemed to rely on increased sales
volumes to create profits, with urban marketeers being more able to create higher profits. Sales volume therefore accounted
largely for marketeers’ profit margin. Lack of representation, weak support services, and lack of appropriate business skills
were among the common problems facing the marketeers. Noncompliance to market regulations and business fluctuations
were also identified as challenges to vegetable marketing in the study area. The study concluded that vegetable marketing is a
profitable venture with prospects to enhance economic empowerment of vegetable marketeers in the study area.
KEYWORDS: Vegetable marketing, gross margin, net profit, urban, semi-urban, northern Ghana.
1 INTRODUCTION
According to a report by Agricultural Transformation Agency (ATA), there is universal recognition that vegetables are
important foods and that vegetable production, marketing, and processing are significant contributors to household income
[1]. The report also indicated that vegetables comprise a large portion of human diet and in most cases the only form of relish
for the low-income group. Also, vegetables provide dietary fibre to improve digestion and health, thereby making them
essential for properly balanced diets [1].
Seidu [2] reiterated that the importance of vegetables is related to their nutritional value as a major source of vitamins and
minerals which are necessary in ensuring a balanced diet. For example, green/leafy vegetables including lettuce, spinach,
broccoli, cabbage, and cauliflower are rich in calcium, iron, and phosphorus; sweet potato leaves and onions are also rich in
phosphorus, while carrot provides vitamin A. Other vitamins supplied by vegetables include folic acid, ascorbic acid (vitamin
C), thiamine (vitamin B1), riboflavin (vitamin B2), niacin and glycine. Also, about 33% of the body’s vitamin A requirement can
be obtained from vegetables while as supplementary foods, the young and tender shoots and leaves of beans are rich sources
of protein and calories. Some green leaves also supply some amount of protein [2].
Allan [3] indicated that vegetables are sources of roughage which stimulate intestinal muscles and apart from keeping them
in good working condition, prevent constipation through its laxative effect where it helps in the movement of the bowels. The
fibre content of vegetables adds to the bulk of the food which prevents the consumer from feeling hungry. The author added