Information Asymmetry and Profitability of Tomato and Butternut Value Chains: A case of Nwanedi Agri-hub
type: CreativeWork
description: The agricultural economic subsector plays a crucial role, in food and nutrition security, trade balance, employment creation, and the supply of raw materials to agro-industries, however, the participation of smallholder farmers in the agricultural production chain and their contributions to value addition, remain poorly understood. Additionally, there are concerns regarding information asymmetry along the value chain, which may disadvantage smallholder farmers. This study aimed to address these gaps by mapping and characterizing the value chains for tomato and butternut crops and comparing the value creation and information sharing processes for these crops. In this study, a quantitative research design was employed and primary data was collected from various stakeholders along the value chains using closed-ended questionnaires. A sample of 150 smallholder farmers from 10 clusters was randomly selected. Data analysis included descriptive statistics, value chain mapping, and inferential statistics such as profitability ratios and Return on Investment (ROI), using the Statistical Package for Social Science (SPSS) version 26 and Excel. The analysis of the tomato and butternut value chains in Nwanedi showed a varied group of participants, such as agro-dealers, farmers, processors, distributors, and retailers, backed by the Nwanedi Agri-hub. In spite of the assistance provided, small-scale farmers encounter challenges, such as significant information gaps. Farmers are often unable to access up-to date market prices and demand trends, which weakens their bargaining position in centralized markets and enables intermediaries to make excessive profits, ultimately reducing farmers' profits. The statistical data showed notable differences in profitability for tomato and butternut growers, which are affected by sales methods and how the crops are managed. Butternut farmers who sell their produce directly to merchants experience increased profitability and earn an average ROI of…
abstract: The agricultural economic subsector plays a crucial role, in food and nutrition security, trade balance, employment creation, and the supply of raw materials to agro-industries, however, the participation of smallholder farmers in the agricultural production chain and their contributions to value addition, remain poorly understood. Additionally, there are concerns regarding information asymmetry along the value chain, which may disadvantage smallholder farmers. This study aimed to address these gaps by mapping and characterizing the value chains for tomato and butternut crops and comparing the value creation and information sharing processes for these crops. In this study, a quantitative research design was employed and primary data was collected from various stakeholders along the value chains using closed-ended questionnaires. A sample of 150 smallholder farmers from 10 clusters was randomly selected. Data analysis included descriptive statistics, value chain mapping, and inferential statistics such as profitability ratios and Return on Investment (ROI), using the Statistical Package for Social Science (SPSS) version 26 and Excel. The analysis of the tomato and butternut value chains in Nwanedi showed a varied group of participants, such as agro-dealers, farmers, processors, distributors, and retailers, backed by the Nwanedi Agri-hub. In spite of the assistance provided, small-scale farmers encounter challenges, such as significant information gaps. Farmers are often unable to access up-to date market prices and demand trends, which weakens their bargaining position in centralized markets and enables intermediaries to make excessive profits, ultimately reducing farmers' profits. The statistical data showed notable differences in profitability for tomato and butternut growers, which are affected by sales methods and how the crops are managed. Butternut farmers who sell their produce directly to merchants experience increased profitability and earn an average ROI of…
author: Livhebe, Nkhumeleni Patrick
language: en
keywords: Crops, Information Asymmetry, Profitability, Smallholder Farmers, Value Chain, UCTD
date published: 2025-05-16
date modified: 2026-07-27T21:57:45Z
provider: University of Venda
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Venda