ABSTRACT
The purpose of this study was to evaluate the organization and performance of chicken egg marketing in northern Ghana. The study included one hundred and ten (110) chicken egg producers and one hundred and eighty (180) chicken egg sellers chosen at random. The study specifically inspected the structure and conduct of chicken egg marketing, estimated the factors that influence the choice of channels for chicken egg marketing, assessed chicken egg marketing performance, and identified and examined the constraints impeding effective chicken egg marketing in northern Ghana. Direct sales to consumers, wholesalers (itinerant and sedentary), and retailers were discovered to be the three main marketing channels in the research area. The retailer marketing channel is the most popular in northern Ghana, and next is the wholesaler marketing channel (itinerant and sedentary), and consumers are the least popular. The Multinomial Regression model (MNL) was used to investigate the factors that influence the choice of channels for marketing chicken eggs in northern Ghana. It was discovered that parameters such as age and income had an impact on the producers' choice of retailers in comparison to direct sales to consumers. However, the quantity of eggs sold was discovered to have influenced the producers' preference for direct sales to consumers over retailers. Producers' age and income influence their decision to pick wholesalers over direct sales to consumers. The sex of the producer, as well as the quantity of eggs sold, were discovered to have influenced the producers' preference for direct sales to customers over wholesalers. According to the gross margin and profitability research, an average egg seller in northern Ghana earns GHC807.40 in gross profit margin each year. This study found a Gini coefficient of 0.5587, indicating a high level of inequality in the sales revenue of chicken egg vendors in the studied area. Several obstacles were also identified as impeding effective chicken egg selling in northern Ghana. Egg breakage losses revealed to be the most limiting barrier, followed by high transportation costs, while theft was listed as the least restricting limitation. According to Kendal's Concordance analysis, there was around 74.3 % agreement among the ranks of the limits of chicken marketing in northern Ghana. The data also revealed that the egg dealers got a net return or profit of GHC692.10 per year and a marketing efficiency of 1.16 per crate, demonstrating that chicken egg marketing is a profitable and feasible industry in northern Ghana.
Table of Contents
CONTENTS PAGE
DECLARATION…………………………………………………………………………… i
ASBTRACT………………………………………………………………………………… ii
DEDICATION………………………………………………………………………………. iii
ACKNOWLEDGEMENT…………………………………………………………………. v
LIST OF TABLES………………………………………………………………………….. xi
LIST OF FIGURES………………………………………………………………………… xiii
LIST OF ACRONYMS…………………………………………………………………….. xiv
CHAPTER ONE
1.0 INTRODUCTION………………………………………………………… 1
1.1 Background of Study…………………………………………………………….. 1
1.2 Problem Statement………………………………………………………………… 3
1.3 Objectives of the Study……………………………………………………………. 5
1.4 Justification of the Study………………………………………………………….. 6
1.5 Organization of the Study…………………………………………………………. 7
CHAPTER TWO
2.0 LITERATURE REVIEW………………………………………………… 8
2.1 Marketing System………………………………………………………………… 8
2.2 Structure-Conduct-Performance (SCP) Paradigm………………………………. 8
2.2.1 Market Structure……………………………………………………. 11
2.2.2 Market Conduct……………………………………………………... 11
2.2.3 Market Performance…………………………………………………. 12
2.2.3.1 Methods of Evaluating Marketing Performance…………. 13
2.2.3.2 Marketing Costs………………………………………….. 13
2.2.3.3 Marketing Margins……………………………………….. 13
2.3 Strategies of Operationalizing SCP………………………………………………. 14
2.4 Market and Marketing…………………………………………………………... 18
2.5 Marketing Efficiency …………………………………………………………… 19
2.5.1 Methods of Evaluating Efficiency of Agricultural Showcasing Framework……………………………………………………………..19
2.6 Marketing Channel………………………………………………………………. 20
2.7 Marketing Chain…………………………………………………………………. 20
2.8 Marketing Actors………………………………………………………………… 20
CHAPTER THREE
3.0 METHODOLOGY………………………………………………………… 22
3.1 Area of Study……………………………………………………………………. 22
3.2 Sources of Data and Types……………………………………………………….. 24
3.3 Methods of Data Collection……………………………………………………….. 24
3.4 Sampling Technique and Sample Size…………………………………………….. 24
3.5 Conceptual Framework…………………………………………………………… 26
3.5.1 Assumptions of the SCP Framework…………………………………… 26
3.6 Method of Data Analysis………………………………………………………… 29
3.6.1 The Structure and Conduct of Chicken Egg Marketing……………… 29
3.6.2 Factors that Influence the Choice of Channels for Chicken Eggs Marketing in Northern Ghana……………………………………………………. 30
3.6.2.1 Model Specification of Multinomial Logistic Regression..…32
3.6.2.2 The Empirical Model Specification………………………… 33
3.6.2.3 Variable Definitions………………………………………… 34
3.6.3 The Performance of Chicken Egg Marketing in Northern Ghana……… 38
3.6.4 Constraints Hindering Effective Chicken Egg Marketing in Northern Ghana…………………………………………………………………… 40
CHAPTER FOUR
4.0 RESULT AND DISCUSSION…………………………………………….. 43
4.1 INTRODUCTION……………………………………………………………… 43
4.2 The Socio-economic Characteristics of the Respondents………………………… 43
4.2.1 Sex Distribution……………………………………………………….. 43
4.2.2 Age Distribution……………………………………………………….. 44
4.2.3 Educational Level……………………………………………………… 46
4.2.4 Production and Training Experience…………………………………… 47
4.2.5 Cooperative Membership………………………………………………. 48
4.2.6 Service Providers in the Chicken Egg Production Business in the Study Area…………………………………………………………………… 50
4.2.6.1 Veterinary Extension Services…………………………….. 50
4.3 The Organization of Chicken Egg Marketing in Northern Ghana……………….. 51
4.4 Marketing Channels in Northern Ghana………………………………………….. 53
4.5 Chicken Egg Producer’s Scale of Production…………………………………….. 53
4.6 Chicken Egg Producer’s Point of Sale……………………………………………. 54
4.7 Category of Buyers from the Producer……………………..……………………… 55
4.8 Production and Marketing Constraints Faced by Chicken Egg Producers……….. 56
4.9 Chicken Egg Marketing at the Seller’s Level……………………………………... 58
4.9.1 Wholesalers……………………………………………………………. 59
4.9.1.1 Source of Wholesaler’s Chicken Eggs …...…………………60
4.9.1.2 Category of Buyers of the Wholesaler’s Chicken Eggs Eggs.61
4.9.2 Retailers………………………………………………………………… 61
4.10 Structure, Conduct and Performance (SCP) Analysis of Chicken Egg Marketing in Northern Ghana……………………………………………………………………. 63
4.10.1 Market Structure……………………………………………………….. 63
4.10.2 Market Conduct………………………………………………………… 65
4.10.3 Market Performance…………………………………………………….. 66
4.10.3.1 Gross Margin……………………………………………… 66
4.10.3.2 Marketing Efficiency ………………………………………. 68
4.10.3.3 Marketing Margin……………………………………………69
4.11 Factors that Influence the Choice of Channels for Chicken Eggs Marketing in Northern Ghana…………………………………………………………………… 70
4.12 Factors that Influence Producers’ Choice of a Marketing Channel………………..71
4.13 Constraints Hindering Effective Chicken Egg Marketing in Northern Ghana……. 76
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS………….. 80
5.1 Summary…………………………………………………………………………… 80
5.2 Conclusion………………………………………………………………………… 81
5.3 Policy Recommendations…………………………………………………………. 82
REFERENCES………………………………………………………………….84
APPENDIX A: NORTHERN GHANA MAP……………………………….. 93
APPENDIX B: ………………………………………………………………… 94
APPENDIX C: SAMPLE QUESTIONNARE………………………………. 95
LIST OF TABLES
Table 3.1 Description of the Independent Variables that are used in the Multinomial Logistic Regression Model …………………………………..............................................................37
Table 4.1 Sex Distribution of the Respondents……………………………………………. 44
Table 4.2 Age Distribution of the Respondents……………………………………………. 45
Table 4.3 Production and Trading Experience of Respondents…………………………….48
Table 4.4 The Scale of Production by the Producer……………………..……………….. 54
Table 4.5 The Point of Sale of the Eggs by the Producer……………………..…………….55
Table 4.6 Category of Buyers from the Chicken Egg Producer……………………..…….. 56
Table 4.7 Production and Marketing Constraints faced by Chicken Egg Producers………. 57
Table 4.8 Category of Chicken Egg Sellers……………………..…………………………. 58
Table 4.9 Sources of Wholesaler’s Stock of Chicken Eggs…...…………………………... 60
Table 4.10 Category of Buyers of the Wholesaler’s of Chicken Eggs……………………...61
Table 4.11 Sources of Retailer’s of Chicken Eggs……………………..………………….. 62
Table 4.12 Buyers of the Retailer’s Chicken Egg……………………...………………….. 63
Table 4.13 Computation of Gini Coefficient for Chicken Egg Sellers per Annum in Northern Ghana………………………………………………………………………………………. 64
Table 4.14 Cost-Return (Gross Margin) and Marketing Efficiency for Chicken Egg Sellers per Annum in Northern Ghana…………………………………………………………….. 67
Table 4.15 Marketing Margin for Chicken Sellers in Northern Ghana per Crate ………….69
Table 4.16 Descriptive and Summary Statistics of Selected Variables Used in the Regression Analysis ……………………………………………………………………………………70
Table 4.17 Maximum Likelihood Estimates of Factors Influencing Producers’ Choice of Chicken Eggs Marketing in Northern Ghana……………………………………………....72
Table 4.18 Marginal Effect after MLogit…………………………………………………..75
Table 4.19 Constraints Hindering Effective Chicken Egg Marketing in Northern Ghana…77
List of Figures
Figure 1 The Map of Northern Ghana…………………………………………………………23
Figure 2 A Schematic Representation of the SCP Model…………………………………….. 28
Figure 3 Educational level of the Respondents……………………………………………….. 47
Figure 4 Cooperative membership for Chicken Egg Producers in Northern Ghana………….. 49
Figure 5 Cooperative Membership for Chicken Egg Sellers …………………………………. 50
Figure 6 Veterinary Extension Services for Chicken Egg Producers………………………….. 51
Figure 7 The Organization of the Chicken Egg Marketing in Northern Ghana……………….. 52
List of Acronyms
AEA Anasitaba Egg Sellers Association
CP Consumer Price
CR Concentration Ratio
FAO Food and Agricultural Organization
GSS Ghana Statistical Services
GDP Gross Domestic Product
GM Gross Margin
HHI Herfindahl-Hirchman Index
IAD Institutional Analysis and Development
JHS Junior High School
KII Key Informant Interviews
MOFA Ministry of Food and Agriculture
MM Marketing Margin
ME Marketing Efficiency
MNL Multinomial Logistic Regression
MSLC Middle School Level Certificate
NDHS National Demographic and Health Survey
NGOs Non-Governmental Organizations
NSEZ Northern Savannah Ecological Zone
NPFA Northern Poultry Farmers Association
NCEA Northern Region Chicken Egg Sellers Association
PHC Population and Housing Census
PP Producer Price
R&D Research and Development
SRID Statistics, Research and Information Mission of Ghana Ministry of Agriculture
SCP Structure-conduct-Performance Paradigm
TGMM Total Gross Marketing Margin
TR Total Revenue
USDA United State Department of Agriculture
VEOs Veterinary Extension Officers
VIF Variance Inflation Factors
WHO World Health Organization
WPVC Women in Poultry Value Chain
CHAPTER ONE
1.0 INTRODUCTION
1.1. Background of Study
In terms of being a commercial concern and a sector that creates jobs at the primary, secondary, and tertiary levels, the livestock sub-sector is an important part of the agricultural economy of Ghana. Investors can quickly turn their capital over thanks to it. Due to this, commercial and numerous backyard poultry farms have been established in northern Ghana, adding to the nation's overall production of meat and eggs. The subsector's contribution to the GDP is approximately 6.1%, according to the 2010 FAO estimate (GDP).
Livestock, among other things, has been claimed to be a crucial risk reduction method for vulnerable communities by Freeman et al. (2007) and Stroebel (2004). The industry is one of agriculture's fastest growing potential growth areas (Delgado et al., 1999; Steinfield, 2002; Stroebel and Swanepoel, 2010). Other authors made the case that the supply side expects the global livestock industry, of which poultry is a subsector, to double by 2020. (Stroebel and Swanepoel, 2010; Anders et al., 2000; Mehta et al., 2003). In terms of growth, Mehta et al. (2003) and Stroebel(2004) noted that the rise in demand for animal products is a result of urbanization, population growth, and, most significantly, income growth. One of the best sources of protein for human consumption is now poultry. It is also a significant source of meat and eggs, both of which have considerable nutritional value, particularly in terms of their ability to giveprotein (Olagunji and Babatunde, 2011). A significant source of employment, income, industrial raw materials, manure, and financial security has also been the chicken business (Chukwuji et al., 2006). The ability of birds to adapt to shifting climatic conditions, their high economic worth, quick cash creation, and high productivity make poultry industry appealing. The egg is one of the most nutrient-dense and balanced foods that has ever existed. It is a key chicken product. Eggs are more readily accessible to the general public than other sources of animal protein because they are the most cost source of animal protein per unit (Olatunji and Abesogun, 2012). Consequently, the chicken industry could help to address the protein shortage, which poses a serious threat to global food security, particularly in Africa (NDHS, 2008). A substantial amount of protein, lipids, vitamins, phosphorus, and other essential nutrients can be found in chicken eggs.
Eggs are easily digested and serve as a source of raw materials for agro-allied companies that employ them to make food, beverages, baked goods, confections, and vaccines by spreading viruses. The demand for eggs and chicken meat has greatly expanded in recent years across much of the continent as a result of the rapid population expansion in Africa (WHO, 2010) and rising affluence (WHO, 2020). As a result, between 2010 and 2020, the consumption of poultry and eggs will rise by 200 %, at least in some Sub-Saharan African nations (Obi 2003; USDA 2013). Changes in real incomes have little to no effect on egg purchasing in industrialized economies (FAO, 2010). In contrast, improvement in real disposable income has a considerable impact on the amount of eggs bought in poor nations like Ghana (FAO, 2010). Indeed, the two main factors affecting egg demand are real income growth and population expansion. Other factors that affect egg consumption include changing lifestyles, different egg production systems, and health care, however these are mostly noticeable in industrialized nations (FAO, 2010). According to research like Usmenge (2000) and Gafarasi (2009), chicken has no significant social or nutritional value from the standpoint of economic growth. Additionally, book binding and the manufacture of shampoo both involve chicken egg albumen (Rahman and Yakubu, 2005). In Ghana, chicken eggs are helpful in filling the protein shortfall. They taste good and are universally accepted. This acceptance transcends almost all cultural and religious divides in the nation. It is impossible to overstate the value of this sector to the economy given its popularity among small-scale poultry farmers and significant economic impact on the nation. It is impossible to overstate the economic significance of marketing chicken eggs given their relevance in the production of poultry.
1.2 Problem Statement
The average Ghanaian's protein consumption is appalling, owing primarily to poverty in the majority of consuming households. For example, the current per capita consumption of animal protein in Ghana is 10g/day, compared to the 34g/day recommended by the FAO as the minimum for healthy living (FAO, 2014; Owen & Dike, 2013), and so the significance of this work cannot be overstated. The aforementioned per capita daily intake is much below the required for developing countries such as Ghana. However, due to rapid population expansion, rising affluence, and urbanization in the last 2-3 decades, demand for poultry eggs and meat in Africa has expanded dramatically (WHO, 2010). This is a significant opportunity for poultry growers to enhance output. However, increasing production without a well-developed marketing system (Layade et al., 2016) will result in a continuum in which all potential gains or profits accrued from the production effort will go down the drains of postharvest losses occurring at every step from harvesting to wholesale and retail (Gyiele, 1999). Customers, on the other hand, expect chicken eggs to be a consistent product that does not change with the season, time of day, or severity of rainfall. Marketing is an important component of any agricultural sub-sector since it assures shuttling of farm produce from the producer tothe ultimate client. Chicken egg marketing would be extremely helpful to society because it would alleviate the scarcity in the supply of poultry products (in this case, poultry eggs), thereby bridging the market gap and providing a source of revenue for individuals involved in its production (Afolabi, 2002).
Despite its tremendous potential and the marketing of its products, the poultry sector has not been adequately exploited. This may be due in part to a deficiency of inducement-germane tip and statistics on the sub-sector. Although research on chicken egg marketing has been conducted (Baagyere and Tontie, 2012), there is little information on the organization and performance of chicken egg marketing in northern Ghana. The purpose of this research is to fill a knowledge gap by evaluating the organization and performance of chicken egg marketing in northern Ghana. In light of the foregoing, the following research topics are addressed in this study:
1. What is the structure and conduct of chicken egg marketing in northern Ghana?
2. What are the factors that influence the choice of channels for chicken egg marketing in northern Ghana?
3. What is the performance of chicken egg marketing in northern Ghana?
4. What are the constraints hindering effective chicken egg marketing in northern Ghana?
1.3. Objectives of the Study
The main objective of this study is to assess the organization and performance of chicken egg marketing in northern Ghana.
The specific objectives are;
1. To examine the structure and conduct of chicken egg marketing in northern Ghana
2. To examine the factors that influence the choice of channels for chicken egg marketing in northern Ghana.
3. To assess the performance of chicken egg marketing in northern Ghana
4. To identify and examine the constraints hindering effective chicken egg marketing in northern Ghana
1.4 Justification of the Study
Interventions aimed at improving the living conditions of chicken egg dealers in northern Ghana and the entire nation depend on an understanding of the nutritional worth and significance of chicken eggs, as well as their marketing organization and performance. The results of this study will help producers and sellers of chicken eggs make decisions on how to organize and promote their products, which will enhance the overall effectiveness of the chicken egg marketing system in northern Ghana. The data generated by this project would also give policy makers evidence-based insights to enable them to make decisions based on that evidence that would address the obstacles facing chicken egg producers, chicken egg merchants, and other participants in the chicken egg supply chain in northern Ghana. Poultry producers who want to invest in poultry production and who want to work on successful ventures would find the information on the profitability of chicken egg marketing important. Some of the obstacles the chicken egg marketing industry in northern Ghana faces will be revealed through this investigation. Additionally, it will provide pertinent advice for enhancing the poultry sector as a whole.
1.5. Organization of the Study
This research is made up of five chapters. The first chapter offers the study's context, stressing the information gap, objectives, and justification. The second chapter is a literature assessment on the structure and performance of chicken egg marketing in northern Ghana. The conceptual and analytic frameworks, study areas, sampling methodologies, data collection procedures, data sources and kinds, and data analysis procedures are discussed in Chapter three. The results of the investigation are provided in graphs and tables in Chapter 4, followed by a discussion of each table and figure. Relevant recommendations and findings are noted in chapter five.
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