ECONOMICS OF SMALL SCALE SNAIL PRODUCTION AND MARKETING ENTREPRENEURS

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ABSTRACT

 

The study was carried out to investigate the economics of small scale snail production and marketing entrepreneurs in Abia State, Nigeria. Multi-stage random sampling technique was employed in selecting 120 respondents (68 snail rearing and 52 snail marketing entrepreneurs). Data collected for the study were analysed using descriptive statistics, net returns and multiple regressions. Based on the data collected and analysed, the study found that the average ages of the snail rearing and marketing entrepreneurs were 44.3 years. A good population of 52.94% of snail rearing entrepreneurs were males while majority 94 .23% of snail marketers were females. The average years of snail farming and marketing experiences were 6.4 years and 9 years respectively. Greater proportion 97.06% of snail rearing entrepreneurs rely on hiring labour and 100.0% of the snail marketers rely on family labour. The four major channels of distributing snails in the study area included: (i) snail rearing entrepreneurs, consumers; (ii) snail rearing entrepreneurs, wholesalers, consumers; (iii) snail rearing entrepreneurs, retailers, consumers and (iv) snail rearing entrepreneurs, wholesalers, retailers, consumers. The result of this study on Gross Margin (GM) and profitability of snail rearing and marketing showed that the Total Revenue (TR) of the snail rearing entrepreneurs per production cycle was ₦158,698.50 and Gross Margin (GM) of ₦80,386.30. The Net Return (NR) was ₦76,713.10 and a Profitability Index (PI) of 0.48. On the other hand, the result of the Gross Marketing Margin of snail marketing entrepreneurs showed Total Revenue of ₦28,549.42, Gross marketing margin of ₦9,537.62, Net marketing margin of ₦8,932.20, Marketing Efficiency of 1.14, percentage (%) marketing efficiency of 114.27 and Benefit Cost Ratio of 1.46. The result of Ordinary Least Square (OLS) regression model presented showed double-log (Cob-Douglas) functional form had the best fit, based on the values of R2 (0.8904). Six (6) variable were statistically significant which included: education, experience, primary occupation, equipment cost, stock size and marketing cost. For socioeconomic determinants of performance of snail marketers, the linear functional form had the best fit, based on the values of R2 (0.7603). Four variables (education, primary occupation, cost of feed and purchase price) were significant and statistical determinants that influenced net marketing margin of snail marketers. Some of the identified problems of snail rearing and marketing entrepreneurs are: serious pest attack, frequent incidence of diseases, high mortality rate, lack of fund to expand business and high marketing cost and charges etc. The study among others recommended provision of adequate finance by financial institutions to increase farmers’ access to credits.






TABLE OF CONTENTS

Title Page                                                                                                                                i

Declaration                                                                                                                             ii

Dedication                                                                                                                              iii

Certification                                                                                                                           iv

Acknowledgements                                                                                                                v

Table of Contents                                                                                                                   vi

List of Tables                                                                                                                          vii

Abstract                                                                                                                                   viii

 

CHAPTER 1: INTRODUCTION

1.1        Background of the Study                                                                                      1

1.2        Statement of the Problem                                                                                     4

1.3        Research Questions                                                                                              6

1.4        Objectives of the Study                                                                                        7

1.5        Research Hypothesis                                                                                            7

1.6        Justification of the Study                                                                                      8

1.7       limitations of the Study                                                                                              8

 

CHAPTER 2: LITERATURE REVIEW

2.1      Conceptual Framework                                                                                               10

2.1.1   Overview of snail production in Nigeria                                                                     10

2.1.2    Climatic requirements for snail production                                                                10

2.1.3    System of snail rearing                                                                                               12

2.1.4    Types of snails reared in Nigeria                                                                                13

2.1.5    Climate factors affecting land snails                                                                          17

2.1.6    Economic importance of snail rearing                                                                       18

2.1.7    Nutritional composition of snail meat                                                                                    21

2.1.8    Marketing of snails in Nigeria                                                                                    22

2.1.9    Snails in local market                                                                                                 24

2.1.10    Snails in international market                                                                                   25

2.1.11  Marketing channels for snails                                                                                     26

2.1.12  Marketing margin                                                                                                       27

2.1.13 Marketing efficiency                                                                                                  27

2.1.14 Problems associated with snail production in Nigeria                                               28

2.2       Theoretical Framework                                                                                              29

2.2.1    Theory of production                                                                                                  29

2.2.2     Factors of production                                                                                                30

2.2.3    Production function                                                                                                    31

2.3      Review of Empirical Studies                                                                                      32

2.4       Analytical Framework                                                                                                35

 

CHAPTER 3: METHODOLOGY

3.1       Research Design                                                                                                         37

3.2       Area of Study                                                                                                              37

3.3       Population of Study                                                                                                    38

3.4       Sampling Procedure                                                                                                   38

3.5       Method of Data Collection                                                                                         38

3.6       Method of Data Analysis                                                                                            39

3.7       Model Specification                                                                                                   39

 

CHAPTER 4: RESULTS AND DISCUSSION

4.1      Socio-economic Characteristics of the Snail Rearing and Marketing

           Entrepreneurs in Abia State                                                                             42

4.1.1   Age of the respondents.                                                                                               42

4.1.2   Gender of the respondents                                                                                           43

4.1.3   Marital status of the respondents                                                                                 44

4.1.4   Household size of the respondents                                                                              46

4.1.5   Farming/marketing experience of the respondents                                                     48

4.1.6    Educational qualification of the respondents                                                             50

4.1.7   Source of labour of respondents                                                                                  52

4.1.8   Location of the respondents                                                                                        53

4.2       Marketing Channels for Snail in Abia State                                                               54

4.3       Profitability of the Snail Rearing and Marketing among                                           57

Entrepreneurs in Abia State

4.4       Factors Influencing the Net Turned of Snail Rearing Entrepreneurs

            In Abia State                                                                                                               62

4.5       Factors Influencing the Net Return of Snail Marketing Entrepreneurs

            In Abia State                                                                                                     66

4.6       Problems Faced by Snail rearing Entrepreneurs in the Study Area                          69

4.7       Problems Faced by Snail Marketers in the Study Area                                    72

 

CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary                                                                                                                     74

5.2        Conclusion                                                                                                                 77

5.3:      Recommendations                                                                                                      78

           

References                                                                                                                  80

            Appendices:                                                                                                                87


 





LIST OF TABLES

                                                                                                                                                 

 

4.1       Frequency & percentage distribution of the respondents by age                                    42

 

4.2       Frequency & percentage distribution of the respondents by gender                                    43

 

4.3       Frequency & percentage distribution of the respondents marital status               45

                                                                                               

4.4       Frequency & percentage distribution of the respondents household                                    46

 

4.5       Frequency & percentage distribution of the respondents by

            Family/Marketing experience                                                                                    47

 

4.6       Frequency & percentage distribution of respondents by education

            Qualification                                                                                                               50

 

4.7       Frequency & percentage distribution of respondents by labour source              52

 

4.8       Frequency & percentage distribution of the respondents by location                                   53

 

4.9       Distribution of Market Participant                                                                             56

 

4.10     Gross margin and profitability of snail rearing entrepreneurs per

            production cycle in the study area (N = 68)                                                               58

 

4.11     Marketing margin and efficiency of snail marketers per cycle in the study area

(N = 52)                                                                                                                      60

 

4.12     Multiple regression estimates of factors influencing performance of snail rearing

 entrepreneurs in the study area.                                                                                 62

 

4.13     Multiple regression estimates of factors influencing performance of snail

            marketers in the study area.                                                                                        66

 

4.14     Mean ratings of the respondents on problem faced in snail rearing

            entrepreneurs in Abia State                                                                                        69

4.15     Mean ratings of the respondents on problem faced in snail marketers

            in Abia State (n = 52).                                                                                            72

 


 





LIST OF FIGURES

                                                                                                                                               

 

4.1       Marketing Channels for Snail in Abia State                                                               54

 

4.2       Marketing Channels of Snails by Proportion of Actors                                             55


 






CHAPTER 1

INTRODUCTION

1.1       BACKGROUND TO THE STUDY

There has been a lot of renewed focus on the diversification of Nigerias’ economy away from its dependence on crude oil. Governments at various levels have introduced numerous initiatives, all aimed at achieving this. Before the Agricultural Transformation Agenda (ATA) of the Federal Government to diversify the nation’s economy, Effiong and Onyenweaku (2006) posited on successive governments in Nigeria had embarked on policies and programs aimed at boosting sustainable macro-livestock and micro/mini-livestock production. While majority of the initiatives are targeted at empowering the populace for greater productivity and resourceful management of available inputs, an appreciable proportion of the initiatives actually have farmers both in the rural and urban areas, as the prime beneficiaries. Also, most of the diversification efforts have been focused on entrepreneurship in the agricultural sector, with emphasis on food crops, micro-livestock, and natural resources management.

 

To drive home their policy initiatives, the government through various advocacy groups and cooperative societies, have been encouraging entrepreneurs to participate in these activities; a move which has started bearing the desired fruits; although the level of performance of entrepreneurs in agriculture as a business venture is still below expectations; especially in the less popular enterprises such as snail farming. Despite the nutritional and health benefit which nutrition and health professionals have been preaching, participation in snail production and marketing have not reached levels to attract appreciable investment to generate incomes.  Much as Ejidike (2002) opined that snail production (and marketing) helps to financially empower youths, his position can be extended to other farmers.

 

Okonkwo et al., (2013) listed the advantages of keeping snails over other livestock which makes it suitable for entrepreneurs with low capital. Starting a snail project requires minimal initial capital outlay. Additionally, snail can be easily sold when a small amount of money is needed to meet immediate family needs. Unlike other livestock enterprises, housing for snails are cheap to construct. Snails could can easily to kept even in improvised housing. Snail’s feeding is cheap. They do not compete with man for food and diet, and instead, they feed on kitchen wastes, poultry manure, leaves and fruits (over ripe or rotten). Snails are highly prolific. This means that they can reproduce at a fast rate. The Archachatina marginata for example lays up to 70 – 95 eggs within a growing season while the Achatina achatina lays up to 250 eggs or more in a growing period. Snails hatch within 28 days and in 12 – 24 months are ready for table. One snail therefore can in a growing period give 100 – 300 new snails (depending on the breed).

 

Moreover, snail production is less labour demanding than most other livestock enterprises. The cost of labour and feed is very low. One man hour or day can care for 100 snails. Feeding on leaves, fruits and kitchen waste, the farmer spends almost nothing on feed. Internationally, snail meat commands good market in Europe and North America. Although the annual snail consumption figure for Nigeria is not known, it is certain that the demand is far above the supply. Snail farming in Nigeria therefore has very high prospect. Snails are derived from the wild life bank and are used as food, feed or source of revenue in given parts of countries. The meat is well appreciated and commands a higher price than the more conventional animals (Olaleye, 2013). Many species of edible land snails are recognized but the popular species of economic interest are the West Africa giant snails, Archachatina marginata and Achatina achatina.

 

Snail is an important food source very rich in protein, minerals and vitamins and some essential amino-acids. According to Cobbinah et al., (2008) study has also shown that the glandular substances in edible snail meat cause agglutination of certain bacteria, which could be of value in fighting a variety of ailments, including whooping cough.

 

Edible snails also play an important role in folk medicine. In Ghana, the bluish liquid obtained from the shell when the meat has been removed is believed to be good for infant development (Imevborem, 1990). The high iron contents of the meat are considered important in treating anaemia. In West Africa, snail meat has traditionally been a major ingredient in the diet of people living in the high forest belt zone.  In Cote d’Ivoire for example, an estimated 7.9 million kg are eaten annually. In Ghana, it is clear that demand currently outstrips supply (Efarmspro, 2006).

The marketing of micro livestock is becoming popular due to the need to bridge the gaps between protein requirement and actual protein consumed by the people (Ajibefun, 2000). Snail is one of such micro-livestock that has recently attracted attention among farmers in Nigeria (Adesofe, 2000; Akinnusi, 2000). According to Akinnusi (1998), Archachatina marginata meat contains 1.41% Calcium while the shell contains 0.53% calcium and is a good source of magnesium and potassium.

The consumption of small meat by rural communities is governed more by culture than by social status (Ebenso, 2003). Snail meat is high in protein (37 – 57%) compared to that of other animals (Iheke and Nwankwo, 2016).

Adeyeye (1996) reported that the amino acids in the protein of snails would complement the sources of protein by making good their relevant deficiency of lysine.

Furthermore, Cobbinah (2001) opined that in West Africa, snail meat forms a substantial part of meat diet of the local people and fetches a good price in the open market. Most of the snails marketed are from the wild (Baba and Adaleke 2006). Bayode (2009) has it that the demand for snails are high, locally and internationally. This agrees with Akinbile (2000) which has it that the advantage of snail over most other livestock is the availability of ready domestic and international market. Presently, Nigeria had not met the local and export demand for snails (Onuigbo, 2016). In spitefulness of the potential in the snail business, snail demand-supply gap is still very high due to certain limiting economic factors in Nigeria (Abia State in particular).

According to Onuigbo (2016) several prospects are obtainable through snail farming (heliculture) and these include creation of employment, provision of substantial source of protein in diets, low risk business investment, inexhaustible market potential.

 

1.2      STATEMENT OF PROBLEM

Although, Iheke and Nwankwo (2016) posits that snail production is profitable in Abia State, and identified the factors affecting the profitability to include labour, cost of feed, and farming experience, other authors like Nto and Mbanasor (2011) had shared similar opinion before then, with little emphasis on the involvement of women entrepreneurs in the enterprise. Snail has been identified as one of such micro livestock that has recently attracted attention among farmers in Nigeria as an aftermath of the anxiety risen by Food and Agricultural Organization (FAO) on animal protein deficiency among Nigerians (Adesofe, 2000 and Akinnusi, 2000). It has been reported by FAO (1986) that the average animal protein intake in Nigeria is low (35%0), calling for concerted effort towards alleviating this crisis of protein shortage. Furthermore, the conventional and regular source of animal protein supply in the country like beef, pork, goat meat and poultry are getting out of reach of the common people due to economic down-turn. This further increases the problem of low protein supply gap in the society.

 

There is therefore the need to look inward and integrate into our farming system some non-conventional meat sources (Ebenebe, 2000). These will complement the conventional animal sources of protein supply. The typical African woman is known to use lamps to pick these snails from nearby bushes in the night for meat. The challenge thus falls on the micro livestock in which Nigeria is richly endowed.  In spite of the considerable external and local demand, commercial snail farms such as those in Europe, South-East Asia and America do not exist in Nigeria. In Nigeria, Ghana and Cote d’Iviore where snail meat is particularly popular, snails are gathered from the forests (Adaigho and Nwadiolu, 2016). In addition to this, the lack of commercial feeds for snails in the market discourages snail farming as a profitable business investment.

However, wild snail population is declining rapidly due to indiscriminate hunting of snails before they get to maturity, bush burning, uses of agrochemicals, deforestation and change in weather (Efarmspro, 2006). This necessitates encouragement of snail farming as a means of conserving this important resource (Onuigbo, 2016). As was observed by Amao, Adesiyan and Salako (2007), it is important that snail farming should be encouraged, because it is only through conscious effort made by man in snail farming that conservation of these species of animal will be made possible.

The snail marketing is gradually becoming popular, especially since the advent of snail domestication in this part of the world. Several intervention efforts have been made to develop the snail sub-sector of the Nigerian economy, yet the sector is still lagging behind compared to other livestock. Marketing of snail must be the missing variable in the intervention programme. This is because according to Osewa (2013), marketing stimulates production and consumption in an economic system. This work on performance analysis of entrepreneurs in production and marketing of snails in Abia State is predicated on the above identified research interests. Entrepreneurs have not fully harnessed their potentials in agriculture and agri-related enterprises and this has become an issue for both academic and economic interests. However, achieving this potential is also facing some obvious problems. The focus of this research was to identify those challenges with a view to relating them to the performance of the entrepreneurs in Abia State, Nigeria.


1.3.         RESEARCH QUESTIONS

i.      What are the socio-economic characteristics of snail production and marketing entrepreneurs in Abia State?

ii.     What are the marketing channels for snail in Abia State?

iii.   What are the profitability of snail production and marketing among entrepreneurs in Abia State?

iv.   What are the factors influencing the performance of snail production and marketing entrepreneurs in Abia State?

v.     What are the problems faced by snail production and marketing entrepreneurs in the study area?

 

1.4      AIM AND OBJECTIVES OF THE STUDY

The aim of this study was to analyze the factors affecting the economics of small scale snail production and marketing entrepreneurs in Abia State. The specific objectives include to:

i.      examine the socio-economic characteristics of the snail rearing and marketing entrepreneurs in Abia State.

ii.     examine the marketing channels for snail in Abia State.

iii.   estimate the profitability of the snail rearing and marketing among entrepreneurs in Abia State.

iv.   identify the factors influencing the net return of snail rearing and marketing entrepreneurs in Abia State.

v.     ascertain the problems faced by snail rearing and marketing entrepreneurs in the study area.


1.5          RESEARCH HYPOTHESIS

Ho1      Socioeconomic variables age, gender, marital status, household size, farming/marketing experience, education do not have significant effect on the net return of snail production and marketing entrepreneurs.

 

1.6      JUSTIFICATION OF THE STUDY

In recent times, rearing of micro-livestock by rural household is becoming popular due to the fact that households have realized the need to diversify their sources of income, thereby reducing the risk involved in depending on crop production or salary earning as the main source of income. There is need to bridge the gap between protein requirement and actual protein consumed by the people which are not sufficiently supplied by crop production (Ajibefun, 2000). Snail rearing and marketing have numerous advantages which are highlighted below;

The snail sub-sector has much to offer as source of income, employment and self-sufficiency in animal protein supply, to the people of Abia State, Nigeria. The research work will serve as a source of literature and as an instrument to agricultural extension agents, individual scholars, business people and government for improvement of production and manpower development in Nigeria. Furthermore, the study will aid government in developing agricultural policies and further research on this topic.

Also, this work will help to promotes awareness on the benefits of snail farming inside Nigeria among entrepreneurs.

 

1.7       LIMITATIONS OF THE STUDY

The study pertains to the owners of snail farms and marketers, who are generally suspicious of the motives of any investigation. They limitations of government neglect to agriculture loans, training of youths as means to raise agriculture from sleep in Nigeria, mostly Abia State. Therefore, investigation has confronted with various drawbacks in ascertaining accuracy of the data. However, care has been in use to collect the data as accurately as possible by generalizing the findings of the present study.

 

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