DOI: 10.36347/sjebm.2016.v03i02.001

Pages: 58-63

This study focused on the analysis of profitability and marketing efficiency of ware yam trading in Umuahia North Local Government Area of Abia State, Nigeria. The broad objectives was to analze the profitability and marketing efficiency of ware yam trading in Umuahia North Local Government Area of Abia State, Nigeria. The specific objectives were to estimate the level of profit realized by the ware yam traders and their marketing efficiency, ascertain the socioeconomic factors that influences the profitability of the marketers and establish the challenges associated with the ware yam marketing. Primary data used in the study were obtained through the administration of a well structured questionnaire to the yam marketers. Five autonomous communities were purposively selected for reason of availability of yam and relevant respondents for data collection. One major market from each community making a total of five (5) markets. Eight (8) ware yam retailers and four (4) ware yam wholesalers were drawn from each market to form a sample size of sixty (60) respondents (40 retailers and 20 wholesalers). Data collected were analyzed using market budgetry analysis estimated using profitability ratios. Profitability ratios computed were; Profitability Index (0.71), Rate of Return on Investment (238.5%), Rate of Return on Variable cost (1101.53%), and Operating Ratio (0.07). The ratios showed profitability to both traders. Result of marketing efficiency showed that yam marketing is efficient with the value of 238.50% across the markets in the area.