Economics of Onion Storage Systems Under Tropical Conditions

ABSTRACT

In Niger, a tropical country, profitability of onion storage is largely dependent on the storage method used and stock sale management adopted. This study examined onion storage operational efficiency, a measure of economic performance of marketing functions. Onion producers' storage preferences, costs and returns, and stock management practices as determinants of operational efficiency were analyzed. A stratified random sampling technique was adopted to select 82 farmers on the basis of three storage systems used: the granary, open-shed and mud-warehouse. Input-output data were collected by type of storage system from March to November 1999. Data collected included cost of construction and economic life of each system, market price of onion during harvest, quantity of onion stored, date of storage, and the date-place-price-quantity at each sale of stock. The data were analyzed using descriptive and inferential statistics. Results indicate similarities in onion storage preferences among farmers except for the unit space use greater for the granary than other two systems. There is no difference in stock management practices (number of sales/unit, duration between two consecutive sales, and quantity sold/sale) and Profit-kg⁻¹ stored between the three types of storage. The granary system presented the least cost of construction and appeared most stable in terms of profit variability than did the other storage systems. The mud-warehouse presented the least rate of loss/day of storage and appeared most stable in terms of operational efficiency variability. The major determinants of operational efficiency were the type of storage system with the granary having a significant coefficient, the amount of storage space, the duration between two consecutive sales, the quantity sold per sale, and the duration of the storage. It is recommended that onion producers keep onion bulbs over longer period of time using the granary system and more on-farm storage space be made available.

Key Words:

• Niger
• onion storage systems
• storage preferences
• stocks management
• costs and returns
• storage operational efficiency