ABSTRACT
The main objectives of the study analysed the costs and returns of beef marketing in Umuahia metropolis of Abia state, Nigeria. Specifically, the study examined the socio-economic characteristics of beef marketing, the sources of their supplies, analysed the costs and returns of the respondents, estimated the determinants of profits of respondents and made recommendations based on the findings. Primary data was used in this study and was generated through the administration of well structured questionnaire to 120 respondents, randomly selected from the list of butchers in Umuahia city. Data collected were analysed using descriptive statistics, charts, percentages, benefits-cost-ratio (BCR), marketing margins and multiple regression. Result from the study showed that majority of the marketers were retailers (66.67%) and only 33.33% of the respondents were wholesalers. The wholesalers were shown to be more efficient in beef marketing, with benefits-cost-ratio of 1.15 as against 1.13 recorded for retailers. Result also indicated that marketers are more adults among wholesalers and more youths among retailers, there are higher percentages of males in both wholesale and retailers butchers (100% and 93.75%) respectively. For both groups of respondents, primary and secondary education level is dominant (50%, 50%) and (25%, 75%) for wholesalers and retailers respectively. The result also showed that wholesalers have more marketing experience than the retailers in the study area. The result revealed that high percentage of both wholesalers and retailers (90% and 96.25%) respectively belong to butchers association. It was therefore recommended that relevant government agencies and other stakeholders in the beef industry should help tom ameliorate the constraint face in beef marketing so as to ensure the sustainability of the industry. For instance, effort should be geared towards the provision of such marketing facilities like mobile cold-rooms at affordable fees for easy transportation, handling and storage of beef so as to reduce spoilage of beef marketed in the sustainability of the business. For instance, effort could be geared towards the provision of such marketing facilities like mobile cold-rooms at affordable fees for easy transportation, handling and storage of beef so as to reduce spoilage. This would not only enhance the quality of beef marketed in the metropolis, it would also ensure the sustainability of the business.
TABLE OF CONTENT
Cover Page - - - i
Declaration - - - ii
Certification - - - iii
Dedication - - - iv
Acknowledgement - - - v
Table of contents - - - vi
Abstract - - - viii
CHAPTER ONE
1.0 INTRODUCTION - - - 1
1.1 Background of the study - - - 1
1.2 Problem Statement - - - 4
1.3 Research Questions. - - - 5
1.4 Objective Of The Study - - - 5
1.5 Significance Of The Study - - - 5
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE - - - 7
2.1 Meat/ Beef industry in Nigeria/Abia State - - - 7
2.2 Sources Of Beef In Abia/Nigeria - - - 8
2.3 The Concept Of Costs And Returns - - - 9
2.4 Profitability Analysis - - - 10
2.5 Profitable Cattle Marketing for the Cow-Calf Producer - - - 11
2.5.1 Plan for the Market - - - 13
2.5.2 Changes in Beef and Live Cattle Marketing - - - 15
2.5.3 Where to Market - - - 15
2.5.3 Choose the Right Marketing Method - - - 16
2.5.4 When to Market - - - 18
CHAPTER THREE
3.0 RESEARCH METHODOLGY - - - 19
3.1 Area of The Study - - - 19
3.2 Sampling Techniques - - - 20
3.3 Method of Data Collection - - - 20
3.4 Data Analysis - - - 20
3.5 Model Specification - - - 21
CHAPTER FOUR
4.0 RESULTS AND DISCUSSIONS - - - 22
4.1 Socio-economic characteristics of Respondents - - - 22
4.2 Sources of Supplies - - - 24
4.3 Cost and Returns Analysis of Respondents - - - 25
4.4 Determinants of Profits among Beef Dealers - - - 27
4.4.1 Regression Analysis of Factors Affecting Profit of
Wholesalers in Beef Marketing - - - 27
4.4.2 Regression Analysis of Factors Affecting Profit of
Retailers In Beef Marketing - - - 29
CHAPTER FIVE
5.1 Summary of Findings - - - 31
5.2 Conclusion - - - 31
5.3 Recommendation - - - 31
References - - - 33
Questionnaire - - - 35
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the study
The need for protein in the diet of human being cannot be underestimated as different categories of individual need protein for growth, development and sustenance, regeneration of ageing and building of worn-out tissues as well as for maintenance. Meat is one of the sources of protein. Odunsi et al, (2005) defined meat as the edible flesh of those animals which are acceptance for consumption by man. Those obtained from cattle are referred to as beef.
Beef, out of the various sources of animal protein consumed is a major source of protein in an average Nigerian family.
This is necessitated due to its wide acceptability devoid of religious and socio-cultural constraints (Okose, 2007).
Marketing is the process of performing market research, selling products and/or services to customers and promoting them via advertising to further enhance sales. It generates the strategy that underlies sales techniques business communication and business developments. It is an integrated process through which companies build strong customer relationships and create values for their customers and for themselves.
Marketing is use to identify the customers, satisfy the customers and to keep the customers as the focus of its activities. (Kotler, 2008).
Okunmadewa (1995), identified two important issues in relation to livestock marketing, the first relates to the nature of the livestock (being live animal).There are specialized manpower and infrastructural requirements needed for assemblage, breaking of bulk and final retaining of livestock in the most conducive manner.
The second issues concerns perceived dispersed nature of the demand and supply centers. This is an ecological factor which leads to wide spacial coverage of marketing channels, the number of links on the marketing chain, services and resources.
Two basic methods of beef marketing in Nigerian has been identified. They are; Modern and Traditional methods (Adaku and Olukosi, 1991).
Traditional Method is the popular method where butchers slaughter animals in abattoirs or private slaughter slabs for themselves or wholesalers and retailers. There is a fee paid to the government on each animal slaughtered for using the abattoir, though the fee varies from place to place.
In modern method, beef marketing is sold by weight either wholesale or retail. Live weight of the animal, live value per kilogram, carcass weight and dressing percentage are considered in arriving at the meat selling price in kilogram in modern market. The pricing of cattle in designated urban markets across Nigeria is shrouded in secrecy until a bargaining is struck.
The essence of beef marketing is to meet the demand of various consumers at an affordable price (that is, to be the link between production and consumption).Since marketing stimulates production and consumption, therefore, the major aim of beef marketers is profit making which is realized by the percentage of value of marketing over cost of marketing.
The most direct and frequently used channel for beef marketing was that from cattle rearers (producers) in the northern part of Nigeria through the wholesales merchants from the Northern parts of Nigeria to the local merchants in the eastern and southern parts who sell directly to wholesale butchers who are then patronized by retail butchers that sell directly to final consumers in the open markets (Waziri et al, 2011).
This appears to be the quickest (and by implication, cheapest) route to get beef in Umuahia metropolis probably due to reduced activities of middlemen. Consumers also prefer this channel due to high level of freedom it affords buyers to select their preferred beef parts and to haggle for suitable price. Such opportunities seldom exist in organized meat shops where prices are fixed and beef are stored in frozen form, making it difficult to decipher preferred parts.
The wholesaler and retailers form the bulk of middlemen in the beef business. Middlemen have to travel down to the north before they can purchase live-cattle, although, there are nearer sources, but the cost price of such are high compared to those from northern states (Nwosu,1990).
In beef industry, marketing the live animals, slaughtering and processing operations and moving the resulting meat products through trade channels to customers are essential to the completion of the production process as the work of the primary produce (Ensminger, 1965).
Generally, in Nigeria, the beef marketing system is still largely traditional. The large proportion of meat is sold through traditional low income markets; which are highly competitive, limiting the scope and potential of large scale operations for processing and packaging of beef.
According to ILCA (1993), five levels have been distinguished for beef sales.
i) at the cattle owners’ home or farmstead where itinerant traders purchase one or two at a time depending on availability.
ii) at primary markets situated in rural areas where most of the cattle are sold by producers to other producers, beef traders or other interested buyers.
iii) at intermediate markets which may be in rural areas but mostly semi-urban, where most of the cattle are sold by traders who purchased at primary markets to others who will take them to terminal markets.
iv) at terminal markets situated in major towns and cities, where most of the cattle are sold by traders to butchers or abattoir operators who in turn sell to urban consumers.
v) at abattoir/wholesale butchers, where abattoir operators or other slaughterers sell whole or part carcasses.
1.2 Problem Statement
In Nigeria, there exists a high rate of spoilage of agricultural products, including beef, arising from poor storage and transportation facilities thereby hampering the total supply of food reaching the consumer’s table (Okuneye, 2002).
According to the national livestock project division (NLPD, 1992), the supply of cattle and its product has been declining while the demand has been increasing, the short fall in supply of cattle has often been linked to the high costs of cattle marketing, because the cattle are brought from the northern part of the country to the east, usually there is high costs of transportation the cattle considering the long distance that the traders have to travel with them.
Other factors that could also affect marketing of beef including, market policy, marketing development, market infrastructure, market information and enabling environments. The pricing of cattle in designated urban market across Nigeria is shrouded in secrecy until a bargain is struck.
According to Olukosi et al (2007), the exact number of agent in these market is difficult to determine and various unfixed charges and commissions are paid by the buyer, depending on his bargaining power. Most of the butchers and merchants are registered, but the brokers are not recognized to be registered officially, so they operate without license.
It is alleged that the involvement of too many middlemen in the marketing of animal products and by-products leads to an inefficient distribution system, high marketing cost and margins (Ekunwe et al, 2008).
Mijindadi and Lufadeju (1995) are of the view that marketing of beef is still being controlled by middlemen, essentially indigenous with strong cultural control. According to them, these indigenous marketing systems can generally be exploitative, collusive and economically inefficient.
1.3 Research Questions.
This study intends to provide answers to the following questions;
i) What are the socio-economic characteristics of respondents?
ii) Where is the source of their supplies?
iii) How is the nature of the costs and returns on investments on the enterprise?
iv) What are the determinants of profit among beef marketers in the study area?
1.4 Objective Of The Study
The main objective of this study is to analyse the costs and returns in beef Marketing in Umuahia metropolis of Abia State, Nigeria. The specific objectives are to;
i) identify and describe the socio-economic characteristics of the respondent.
ii) examine the sources and supplies of respondents.
iii) analyse the costs and returns among beef marketers in the study area.
iv) estimate the determinants of profit among dealers in the study area and;
v) make recommendations based on findings.
1.5 Significance Of The Study
The result of the study will serve as a source of information to policy makers and government on ways in which they can assist the beef industry to be efficient. This will also provide a base in the projection as regards to beef in the nutritional requirements of the people in the study area.
The outcome is also expected to deepen insight into investment pattern amongst beef retailers and potential beef marketers to assist them in their overall marketing strategies. This will also form a basis for further studies in beef marketing process and improvement.
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