ABSTRACT
The study evaluated poultry and poultry product marketing chain in Abia state, Nigeria. A major objective of this study among others is to analyze the factors affecting poultry product marketing orientation and to examine the relationship between annual income and degree of poultry production and marketing. It specifically identified the5 socio-economic characteristics of the respondents, examined the market structure for poultry products in the study area, determined the profitability of poultry and poultry product marketing and determined the influence of some socio-economic characteristics on the sales revenue of respondents. Primary data used in this study was generated through the administration of structured questionnaire to the 100 respondents randomly selected from the poultry and poultry product marketers in the study area. Though, 80 questionnaires were returned, but after cross-examination, 41 were considered valid for the purpose of the study. Data collected were analyzed using Descriptive Statistics, Multiple Regression and Pearson Correlation Coefficient. Descriptive statistics such as frequency and percentages were used to analyze the socio-economic characteristics of respondents while multiple regression analysis was employed to analyze the factors affecting poultry product marketing orientation in the study area. Pearson’s correlation coefficient was used to examine the relationship between annual income and degree of poultry production and marketing. Considering the result drawn from the study, marketing of poultry and poultry product is profitable and can be further increased through grading and standardization. The result also showed that Poultry production system in Abia state is characterized by very low input-output ratio due to many systematically interlinked constraints. The study determined the factors influencing market orientation of poultry and poultry product marketers, and analyzed the influence of income on degree of farming of poultry and poultry product marketers. Poultry marketers complained of transportation difficulties, storage facilities, poor access to credit facilities and diseases as the major constraints they faced in their marketing effort. It is therefore recommended that government agencies and their stakeholders should help ameliorate these constraints so as to ensure sustainability of the industry and to ensure the availability of poultry products to consumers as at when needed so as to achieve United Nation Millennium Development Goals (MDGs) of Food sustainability.
TABLE OF CONTENTS
Title Page - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Certification - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgment - - - - - - - - - v
Table of Contents - - - - - - - - - vi-xi
Abstract - - - - - - - - - - xii
CHAPTER ONE
1.0 Introduction - - - - - - - - - 1
1.1 Background to the Study - - - - - - - 1-5
1.2 Statement of Problem - - - - - - - 5-6
1.3 Objectives of the Study - - - - - - - 7
1.4 Research Questions - - - - - - - 7
1.5 Research Hypotheses - - - - - - - 8
1.6 Significance of the Study - - - - - - - 8
1.7 Scope of the Study - - - - - - - 8-9
1.8 Limitations of the Study - - - - - - - 9
CHAPTER TWO
2.0 Review of Related Literature - - - - - - 10
2.1 Concept of Poultry and Poultry Farming - - - - 10-11
2.2 Prospects and Challenges Facing Poultry Production in Nigeria - 11-13
2.3 Basic Concept of Market and Marketing - - - - 13-16
2.4 Marketing System - - - - - - - - 16-17
2.5 Marketing Efficiency - - - - - - - 17-19
2.6 Marketing Channels - - - - - - - 19-20
2.7 Market Chain and Business Support Services - - - - 20
2.8 Approaches involved in the Study of Agricultural Marketing - 21
2.8.1 Functional Approach - - - - - - 21
2.8.2 Institutional Approach - - - - - 21-22
2.8.3 Commodity Approach - - - - - - -- 22
CHAPTER THREE
3.0 Research Methodology - - - - - - - 23
3.1 Area of Study - - - - - - - - 23
3.2 Method of Data Collection - - - - - - 24
3.3 Sampling Size and Method of Sampling - - - - 24
3.4 Method of Data Analysis - - - - - - - 25
3.5 Model Specification - - - - - - - 25-26
CHAPTER FOUR
4.0 Results and Findings - - - - - - - 27
4.1 Socio-economic Characteristics - - - - - 27
4.1.1 Sex of the Respondents - - - - - - 28
4.1.2 Age of Farmers - - - - - - - - 29
4.1.3 Educational Level of Respondents - - - - - 29
4.1.4 Degree of Farming - - - - - - - - 30
4.1.5 Annual Income - - - - - - - - 30
4.1.6 Experience - - - - - - - - - 30
4.1.7 Household Size - - - - - - - - 31
4.1.8 Marital Status of the Respondents - - - - - 31
4.1.9 Market Orientation - - - - - - - 31
4.2 Analysis of the Estimation of Factors Influencing Market Orientation
of Poultry and Poultry Product Marketers - - - - - 32-34
4.3 Analysis of the Influence of Income on Degree of Farming of Poultry
and Poultry Product marketers - - - - - - 34-35
CHAPTER FIVE
5.0 Summary of Findings, Conclusion and Recommendations - - 36
5.1 Summary - - - - - - - - - 36
5.2 Conclusion - - - - - - - - - 36-38
5.3 Recommendations - - - - - - - - 38-39
References
Appendixes
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to the Study
Agriculture continues to be the most important sector of the Nigerian economy in terms of provision of employment inspite of its declining contribution to the nation’s foreign exchange earnings. The types of poultry that are commonly reared in Nigeria are chickens, ducks, guinea fowls, turkeys, pigeons and more recently ostriches.
Poultry outnumbers all other forms of livestock in Nigeria and not surprisingly is found throughout the country wherever there human settlement. The main poultry production system in the country can be generally differentiated into 2 groups, namely; subsistent and commercial. This study restated the findings of previous studies that majority of poultry in Nigeria are kept by subsistence farmers. Inspite of the immense contributions of the poultry industry to the national economy, the subsector is facing challenges such as poor quality of ingredients used in the manufacture of feed, supply of poor quality chicks, high feed costs, inadequate access to and high cost of veterinary services and poor marketing information systems amongst others. These factors, to a large extent, have slowed down further growth of the sector. Impetus on development of commercial poultry production can be facilitated by public private partnership. This would ensure sustainability of poultry enterprises, provision of capital subsidy by government in form of periodic grants to poultry farmers and core infrastructures. Government should provide financial assistance to subsistence and small-scale poultry farmers in form of soft loans. It should also give them tax concession. Poultry waste management system under commercial production should be properly designed, built and maintained in order to protect both surface and underground water quality (Adeyemo and Onikoyi, 2012).
Poultry is one of the world’s major and fastest growing sources of meat and egg and representing over 22% of the meat Production in 1989. Because of their high nutrient content and relatively low caloric value, egg and poultry products are natural commodities to meet emerging consumer demands (Stenholm and Waggoner, 1991).
Poultry production is a very important enterprise of the livestock industry in Nigeria. Despite the large population of livestock in the country, the protein intake is below the requirement of 20% for adults (Shaibet al., 1997). The need for animal protein in human diet has been recognized for long. In recent times, consumptions of most Nigerians have declined to an unbearable level.
Malnutrition in human diet has been a major issue being debated on World Wide. Mostly in the developing countries, cases of poor health condition were traced to lack or inadequate animal protein in their diet. Feeding onfood of animal origin is probably the fastest economic and nutritional route to improvement in the nutritional status.
Foods from animal origin have the capability of providing 35 g per capita of animal protein per day (Ojo, 2003).
Poultry is one of the main sectors where over 60% of animal protein is being derived. However, the increased growth rate experienced in this industry does not commensurate with the fast rate of growing population. Egg as an important poultry product is known to be acceptable to all people of all races, and the most widely demanded poultry product. The production of eggs has been the factor of the greatest economic importance in poultry production thus the marketing of this product cannot be over emphasized.
Marketing is concerned with all stages of operatives which include the movement of commodities from the farms to the consumers. It involves the performance of all activities involved in the flow of goods and services from the point of initial production until they are in the hands of the ultimate consumers. Most of the eggs marketed and consumed in Nigeria come from poultry birds. Only little attention is given to other sources such as ducks, turkey, guinea fowl and geese because of their ability to lay few eggs (cepan, 1997). As a result of the fragile nature of eggs, its marketing has been influenced by the difficulties in handling, transportation and distribution to the consuming unit. This has also influenced the cost of eggs in the market to a point that an average Nigeria cannot afford to buy eggs, and as a result failed to meet up with the standard nutrition requirement for protein intake per day or monthly.
The price of agricultural products particularly livestock products is rising both in domestic as well as international markets due to rising income in newly emerging
developing nations and high population growth. Livestock products have very high income elasticity, and demand increases rapidly with rising income as countries shift from lower to middle income economies. This has led to a ‘livestock revolution’ in developing counties (Delgado et al., 1999). Increases in poultry consumption have been particularly dramatic and widespread, while changes in beef, pork, and dairy demand vary with cultural differences between countries. Livestock products have long been a pathway for income generation by the poor. Rapidly growing and changing livestock markets in the developing world provide real opportunities but also significant threats to participation of the poor. This is due to the increasing integration of national and world markets, the changing nature of food demand in cities, and a changing regulatory environment on the one hand, and constraints to smallholders' inability to produce high quality products due to lack of technology, inputs, resources and information on the other hand. High value agricultural products, of which livestock products form an important part, cover a range of goods whose attributes are driven primarily by demand and by the manner and cost of production. Due to demand, markets for traditionally processed, informal and raw products continue to predominate in most developing countries, even while demand for higher quality increases at the higher market end (Gebremedhinet al., 2007).
Delgado et al. (1999) projected that per capita consumption of livestock products will increase by about 50 percent from 1993 to 2020, with most of the increases attributed to developing countries, as a result of population growth, urbanization, and rising incomes.
Demand for livestock products, including poultry, is expanding in Nigeria as a result of population growth and increased urbanization.
Market systems do not, however, provide the only mechanisms for ‘coordinated exchange’. In advanced market economies hierarchical relations in organizations (government agencies, firms, and civil society organizations) play a major role both as channels for exchange and in providing institutional services necessary for markets to work (Fafchamps, 2004; Williamson, 1991).
1.2 Statement of the Problem
Marketing systems play a decisive role in vibrant economies as mechanisms for both exchange (necessary for specialization and hence leads to higher economic growth) functions and the proper coordination of the exchange (through price signals) which reflects and shape producer and consumer incentives in supply and demand interaction. If small scale domestic producers are to take advantage of the projected domestic demand growth, then marketing systems in the supply chains linking producers to consumers must be able to support low cost production and timely delivery of the products (Andrew et al., 2008).
Inadequate effective and efficient marketing system which links farm and non-farm communities affects Agricultural products particularly livestock products that can be supplied to satisfy the demand of consumers.
The Nigerian poultry sector faces high production costs, safety concerns due to lack of sanitary controls, and technical constraints in processing and marketing. Production costs are higher in Nigeria due to the lack of an integrated and automated industrial poultry sector. Farmers lack reliable access to inputs, including chicks and feed, and face high costs for veterinary services.
Animal products provide about five percent of daily energy supply in Nigeria. Poultry meat and eggs together provide 0.82 percent of total daily calories consumed on average, Per capita consumption of chicken meat and eggs increased 20 percent from 2000 to 2007, reaching 5.4 kilograms per capita in 2007. (FAOSTAT)
Poultry meat and eggs are still considered luxury foods for many Nigerians. In rural areas, poultry consumption is reserved for special occasions, and meat and eggs typically come from household flocks. Urban dwellers consume larger amounts of poultry due to their relatively higher income levels and greater access to fresh or frozen products in markets and fast food outlets. Eggs are a daily part of the diet in urban areas, while poultry meat is consumed on an occasional basis. Throughout the country, demand for poultry meat spikes in December, around Christmas and the New Year, and in April, for Easter.
1.3 Objectives of the Study
The general objective of this study is to analyze the poultry and poultry product marketing chain in Abia State. The specific objectives of the study are to:
1. Analyze the Socio-economic characteristics of the respondents.
2. Analyze the factors affecting poultry product marketing orientation.
3. Examine the relationship between annual income and degree of poultry production and marketing, and
4. Make recommendations based on findings.
1.4 Research Questions
The study tried to answer the following major questions:
1. Doesthe socio-economic characteristics of the respondents affect the marketing of poultry products?
2. What are the factors affecting poultry products marketing orientation?
3. Does the structure of poultry production cost determine profitability of poultry keeping?
4. How does the annual income affect the degree of poultry production and marketing?
1.5. Research Hypotheses
Ho1: There is no significant relationship between poultry production cost and profitability of poultry keeping in the study area.
Ho2: The chain of distribution does not affect the demand of poultry products.
Ho3: There is no significant difference between the poultry product supply and poultry product demand in the study area.
1.6. Significance of the Study
The result of the study is helpful for farmers, traders and service providers involved in the production and marketing of poultry and poultry products in the study area. This study also helps development planners and policy makers in designing appropriate policies for the production and marketing of poultry subsector to enable farmers and other participants benefit according to their marginal contribution so that they can stay in the business. Moreover, the information can be provided for potential investors and small and medium enterprises interested in the business so that medium and large scale poultry farms can be established.
1.7. Scope of the Study
This investigation was conducted in two local governments and applied information collected from limited sample households, poultry farms and marketing actors involved in poultry and poultry products marketing in the study area. The subject scope is restricted to the analysis of poultry and poultry products marketing chain in Abia state.
1.8 Limitations of the Study
Hence, the investigation was limited spatially as well as temporally to make the study more representatives in terms of wider range of commodity, area, and time horizon. The purpose of the study also limits the investigation toward a single commodity and specific geographic location.
The time given for the study is very short, considering the academic work load that one has to face and the school academic calendar. Also, insufficient fund served as a limitation in the sourcing of materials for the research.
Finally, some of the respondents were not cooperating, as they refused to collect or fill the questionnaire administered to them.
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