Analysis of structure, conduct and performance of cabbage market in central district of Botswana

Abstract

The commercial horticulture industry in Botswana has experienced remarkable growth in the last decade and it continues to grow. However, lack of a well-coordinated marketing system of horticulture products remains a major constraint in further development of the industry. The focus of the study, therefore, was to assess the structure, conduct and performance of the cabbage market in the Central District of Botswana in order to elucidate the performance of the marketing system before any interventions are made to change the existing conditions. The data for the study was sourced from both primary and secondary sources. The study employed descriptive statistics, Gini coefficient and the Lorenz curve to determine the degree of market concentration in the study area. The gross margin, marketing margin and marketing efficiency was used to measure the performance of the horticulture market in the Central District of Botswana. The results of the study showed that the Gini coefficient was 0.672 and 0.509 for wholesalers and retailers respectively, indicating a highly concentrated market hence an oligopoly market structure. Further, the study found that producers attained the highest gross margin of Botswana Pula (BWP) 76 964.80, followed by wholesalers and retailers with BWP 6 017.48 and BWP 4 326.70 respectively. The marketing margins revealed that retailers attained the highest marketing margin of 50 percent while wholesalers had 34 percent. In conclusion, cabbage production and trading in the Central District is profitable; however, it is characterized by uncompetitive practices. The study therefore, recommends that the Government of Botswana should develop a policy that restricts monopolistic tendencies currently obtaining in the cabbage market in order to create a fair playing field for all actors in the market.