Okro value chain and marketing channel analysis in Nigeria

This study investigated the value chain and marketing channels of fresh okro in Nigeria. A multistage sampling technique was used to survey 253 participants (85 producers, 25 wholesalers, 143 retailers) to delineate channels, cost structure, margins, and factors influencing marketing performance. The most prominent marketing channel were producer → middleman → retailer → consumer (33.3%), followed by producer → retailer → consumer (29.2%), producer → wholesaler → retailer → consumer (20.8%), and direct sales by producers to consumers (16.7%). Producers grappled with average seasonal costs of ₦898,494, ultimately achieving gross margins of ₦479,506. This translated to a return on investment of 53.4%. Wholesalers and retailers, however, experienced lower ROIs, at 22.2% and 17.6%, respectively. Sensitivity loss simulations suggested that a reduction of post-harvest losses by 50% would result in a 9–10% increase in the quantities sold and gross margins would increase by 5 -- 5.4 percentage points. On the other hand, a reduction of 20% in transport costs would result in lower margin increases (0.2–1.7 percentage points). Regression with R2 = 0.65 and Farmer/ Marketer characterizes (β1 = 0.30, p = 0.021), Farm/firm attributed (β2 = 0.55, p < 0.01), Seasonality and perishability (β3 = 0.45, p = 0.0005), Gender and household (β4 = 0.22, p = 0.039), Transaction cost and logistic (β5 = 0.20, p = 0.036) were the most important variables that explained marketing outcome. Cogent strategies found to improving efficiency of okro value chain marketing included collaboration with local restaurants, direct selling to consumers, and cooperative marketing. To enhance the welfare and efficiency of producers, policymakers should focus on low-cost cold storage, aggregation hubs, targeted transport support, and digital price platforms.