An Integrated Assessment of Production Economics and Marketing Margins in Guava (Psidium Guajava L.) Supply Chains

Abstract

Guava (Psidium guajava L.) is an important tropical fruit valued for both its nutritional content and its contribution to farm income. In Pakistan, it ranks among the leading fruit crops, particularly in Sindh province. However, its economic potential remains underutilized due to low productivity, considerable post-harvest losses and inefficient marketing systems that limit returns to growers. Earlier studies in Pakistan indicate that farmers typically receive only 15–27% of the final consumer price, yet evidence integrating production economics with marketing performance is lacking for Hyderabad, a key production and distribution center supplying the Karachi market. This study examined the economics of guava production, varietal performance and marketing margins in District Hyderabad during the 2022–2023 season. A cross-sectional survey design was applied using multi-stage random sampling. Data were collected from 120 respondents, including farmers and key intermediaries, through structured interviews. Information on input use, yields, costs and prices was analyzed using descriptive statistics and standard marketing margin techniques. The findings show that guava cultivation covered 11,034 hectares, producing 154,155 tons. The Shamlo variety was most widely grown and performed better in terms of yield. On average, production required Rs. 223,075 per hectare, generating a gross income of Rs. 376,960 and a net return of Rs. 153,885, indicating moderate profitability (input–output ratio 1:1.69). Despite this, the marketing structure remains highly uneven. Farmers received only 19% of the consumer price (Rs. 669 per 40 kg crate), while the remaining share was captured by retailers (39%), wholesalers (21%), contractors (15%) and commission agents (6%). Overall, although guava farming is economically viable, inefficiencies in the marketing system substantially reduce farmer benefits. Improving collective marketing, strengthening storage and grading facilities and promoting small-scale processing could help increase producer returns and reduce losses.