ANALYSIS OF POTENTIAL DEMAND FOR EVAPORATIVE COOLING STORAG BY FRUIT AND VEGETABLE FARMERS IN ONDO STATE, NIGERIA.

Abstract

Postharvest losses in fruits and vegetables production are direct result of food waste, a key pathway to food and nutrition security problems in developing countries constrained by inadequate storage facilities. The high transaction cost of conventional cold rooms is compounded by lack of connectivity to power supply in the rural areas which necessitates interests in evaporative cooling storage as cheaper alternatives for smallholder farmers. The study analyzed potential demand for evaporative cooling storage by fruits and vegetables farmers in Ondo state, Nigeria. Primary data were obtained from field data survey using personal interviews and structured questionnaire. Empirical results revealed that 33.4% of the respondents are within 36-45 years old active productive stage and 60.8% are women indicating that fruits and vegetables farming are dominated by women. About 27% have primary education, 22.5% had secondary education while 35.8% have spent about 19years in fruits and vegetables production. Average farm size is 1.48 hectares with average annual income of N807,200. Market glut, inappropriate transport facilities and lack of cooling storage system are major causes of postharvest losses which mainly include quality loss, weight loss, and discolouration. Delayed sales (36.7%), poor rural transportation (20.8%) were major reported causes of postharvest losses. Indigenous strategies used in preventing losses include quick sales at low cost (90.8%), open air storage (75.0%) and fresh leaves coverage (63.3%). The study shows that 73.3% are willing to pay for evaporative cooling storage system which indicate that local storage method is not effective in reducing postharvest losses and wastes in the study area. Logit model result explains that farming experience, farm size, level of education, access to credit and annual income are significant factors influencing farmers’ willingness to pay for evaporative cooling storage system. Contingent valuation method was used to analyse farmers willingness to pay for cooling refrigerating storage system using referendum payment mode. Results from tobit estimates reveals that on average, N59,040.00 would be paid per year for evaporative cooling storage system thereby resulting into a market value of N73.21 million in the study area. The aggregate potential demand for evaporative cooling storage system for fruits and vegetables is obtained at the annual market value of over N114 billion in the tropical zone of Ondo State, Nigeria. Sensitivity analysis results of a 5% increase in positive willingness to pay for evaporative cooling storage provides an additional market value of 4.76% annually to service providers. Agricultural stakeholders on improved storage should consider the innovative evaporative cooling storage system as a high market value investment from reducing postharvest losses in fruits and vegetables in Ondo State, Nigeria.