Factors Influencing Adoption and Profitability of Returnable Plastic Crates as a Food Loss Reducing Technology Among Fresh Tomato Traders in Lagos State, Nigeria

Abstract

The tomato traders in Nigeria experience high levels of tomato postharvest losses, which could negatively affect their income and welfare. The Returnable Plastic Crates (RPCs) were introduced into the tomato industry in Nigeria due to their effectiveness in curbing postharvest losses. However, the level of adoption of RPCs in the country remains low, and there is little evidence on the effect of adopting RPCs on the trader’s income. The study, therefore, analyzed the profitability of the fresh tomato trade, the factors influencing the adoption and intensity of adoption, and the effect of RPC adoption on the trader’s profit margin. The study randomly sampled 245 fresh tomato traders from different tomato markets in Lagos State, Nigeria. Data were collected through focus group discussions, interviews of key informants, and individual trader interviews. A double-hurdle model, endogenous treatment model, t-test and gross margin analysis were used in analyzing the data. The mean gross margins for the fresh tomato traders using RPCs and woven baskets were N4,083,200 (approx. 11,342 USD) and N1,845,150 (approx. 5,125 USD) per annum respectively. There was a low level of access to credit and participation in training programs and the adoption of RPCs among fresh tomato traders in the study area. The trader’s decision to adopt RPCs was significantly affected by the age of the trader, access to radio, group membership, and participation in training programs. Also, the number of income sources, the number of decision-makers, and the trader’s profit were factors that significantly affected their intensity of RPC adoption. The study, therefore, concluded that the adoption of RPCs significantly increased the profit of the traders by reducing the level of postharvest losses they encounter. An increase in training programs on the use of RPCs among tomato traders was recommended. The market groups should be actively involved in the intensifying the adoption of RPCs among fresh tomato traders