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Profitability of Beef Value Chain Marketing in Delta State, Nigeria

Received: 14 June 2023     Accepted: 3 July 2023     Published: 8 September 2023
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Abstract

The study determined the profitability of beef value chain marketing in Delta State. A two-stage sampling technique was used for the study. The first stage was a purposive selection of four major towns: Asaba in Oshimili North, Warri in Warri South, Agbor in Ika South and Ughelli in Ughelli North Local Government Area of Delta State. These towns were sellected for the study because of the high marketing activity of beef in these places. The second stage involved a random selection of 320 beef marketers in the open market, abattoirs, meat shops and hotels across the four Local Government Areas. The distribution of the sample was based on proportion to size using Taro Yamane formula. The result of the study showed that beef marketing comprise of marketers who are married and advanced in age, their mean age were 46.6 years for the abattoirs; 47.5 years for the open market; 46.7 years for the meat shops and 51.9 years for the hotels. The average years of experience for the abattoirs, open markets, meat shops and hotels were 10.5; 12.7; 13.9 and 13.8 years respectively. The result of the study also showed that the distance that the marketers convey their beef to the market ranges from 6km to 15km. Majority of the marketers cover a long distance to convey their beef to the market. The implication of this is that the marketers will have to pay higher cost of transportation in conveying their beef to the market and this will have effect on their sales gross margin. The findings showed that the highest cost was the cost of beef and transportation: the cost of beef and transportation in each of the four different beef market value chains; abattoirs, open markets, meat shops and hotels were ₦255,000, ₦247,000, ₦253,200, ₦264,150; and ₦5479.2, ₦4305.8, ₦4123.4, and ₦4220.6respectively. The average total revenue for each of abattoir, open market, meat shop and hotel were ₦379,650, ₦384,450, ₦436,650 and ₦459,210 respectively. From the gross marigin analysis the largest share of gross margins was earned by abattoir operators who generated an average gross margin of ₦176 041.5 (39.7%) followed by the hotels, ₦150, 149.1 (35.3%), then the meat shops ₦127, 620.6 (32.5%) and finally the open markets ₦111,365.9 (30.1%). Therefore, beef value chain marketing in Delta State is a profitable enterprise. The efficiency of beef marketing under the four different marketing value chains was found to be highest for the hotels (1.56), followed by meat shops (1.35), abattoirs (1.24) and then open markets (1.20). Based on the findings of the study if efforts are made by the marketers in marketing quality beef the marketers will gain higher and more reliable returns and resources just as the customers will gain more satisfaction on the value of money spent on the purchase of beef.

Published in Science Journal of Business and Management (Volume 11, Issue 3)
DOI 10.11648/j.sjbm.20231103.14
Page(s) 126-132
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Beef Marketing Chain, Value Cost, Abattoir, Open Market, Revenue, Meat Shop, Hotel

References
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[2] Acharya, S. S. (2006). Agricultural Production, Marketing and Price Policy in India, Mittal Publications, New Delhi, India. 330pp.
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[5] Ehirim, N. C., L. O. E. Nwauwa, and E. E. Ikheloa. 2013. Determinants of consumer preference for safe beef in Delta State, Nigeria, Wudpecker Journals of Agricultural Research, 2 (3): 073-079.
[6] Ekunwe, P. A., Emokaro, C. O. O. Ihenyen, J. O. Oyedeji and Alufohai, G. O. (2008): An Analysis of Egg Marketing in Benin City, Edo State, Nigeria. Farm management Association of Nigeria (FAMAN). 22nd Annual. Conference Proceedings held in Markudi 8th-11th September 2008. Pp 331-337.
[7] Delta State Ministry of Agriculture and Natural Resources, Asaba. (2011)
[8] Emokaro, C. O. and Amadasun, O. J. (2012). Analysis of Beef marketing in Benin city, Nigeria. Journal of Agriculture, Forestry and Fisheries, 8: (3). 24-32.
[9] Isabbella, B. and Steve, S. (2007). Beyond one -size fits-all differentiating market access measures for commodity systems in the Kenyan Highlands. Journal of Agricultural Economics 58 (3): 536-548.
[10] Kadigi, M. L. (2012). Factors influencing choice of milk outlets among smallholder dairy farmers in Iringa municipality and Tangacity. Unpublished MSc Agricultural Economics thesis, Sokoine University of Agriculture. Morogoro, Tanzania. 74-76pp.
[11] Mafimisebi. T. E, Bobola, O. M and Mafimisebi, O. E. (2013). Fundamentals of cattle marketing in Southwest, Nigeria: Analyzing market intermediaries, price formation and yield Performance: Invited paper presented at the 4th International conference of the African Association of Agricultural Economics, Hammamet, Tunisia. Pp. 17-30.
[12] Musemwa, L., Mushunje. A., Chimonyo, M., Fraser, G., Mapiye, C. and Muchenje, V. (2008). Nguni cattle marketing constraints and opportunities in the communal areas of South Africa: Review. African Journal of Agricultural Research 3 (4): 239-245.
[13] Nandonde, S. W., Msuya, E. and Mtenga, L. A. (2013). Assessment of the influence of Consumer characteristics on the choice of beef quality attributes in Tanzania: An experimental economic approach. Journal of Agricultural Economics and Development 2 (3): 111-119.
[14] NBS - National Bureau of Statistics, (2012). Poverty Profile for Nigeria. National Bureau of Statistics Federal Republic of Nigeria, Abuja.
[15] Okuneye, B. 2002. Livestock Sub-Sector in Nigeria; Challenges and Prospects. In: Diversification of the Nigerian Economy: Policies and Programmes for Increasing Agricultural Output, Mordi, C. N. O; Nnanna, O. J., Ukpony, G. E. and Adepegba, A. (Eds), Central Bank of Nigeria Billion 26 (3): 16-22.
[16] Oladejo, J. A. (2012). Profitability of beef marketing in Illorin East Local Government area of Kwara State. Prime Research on Biotechnology.: www.prime journal.org, 2: (3).47-52. 0.
[17] Olukosi J. O; Isitor S. U; Ode M. O: Introduction to agricultural marketing; Principles and application (3rd edition). Abuja, Nigeria: G. U. Publusher, 2007: 26-42.
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    Tibi Kentus Nwachukwu, Oyem Amos. (2023). Profitability of Beef Value Chain Marketing in Delta State, Nigeria. Science Journal of Business and Management, 11(3), 126-132. https://doi.org/10.11648/j.sjbm.20231103.14

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    Tibi Kentus Nwachukwu; Oyem Amos. Profitability of Beef Value Chain Marketing in Delta State, Nigeria. Sci. J. Bus. Manag. 2023, 11(3), 126-132. doi: 10.11648/j.sjbm.20231103.14

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    AMA Style

    Tibi Kentus Nwachukwu, Oyem Amos. Profitability of Beef Value Chain Marketing in Delta State, Nigeria. Sci J Bus Manag. 2023;11(3):126-132. doi: 10.11648/j.sjbm.20231103.14

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  • @article{10.11648/j.sjbm.20231103.14,
      author = {Tibi Kentus Nwachukwu and Oyem Amos},
      title = {Profitability of Beef Value Chain Marketing in Delta State, Nigeria},
      journal = {Science Journal of Business and Management},
      volume = {11},
      number = {3},
      pages = {126-132},
      doi = {10.11648/j.sjbm.20231103.14},
      url = {https://doi.org/10.11648/j.sjbm.20231103.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20231103.14},
      abstract = {The study determined the profitability of beef value chain marketing in Delta State. A two-stage sampling technique was used for the study. The first stage was a purposive selection of four major towns: Asaba in Oshimili North, Warri in Warri South, Agbor in Ika South and Ughelli in Ughelli North Local Government Area of Delta State. These towns were sellected for the study because of the high marketing activity of beef in these places. The second stage involved a random selection of 320 beef marketers in the open market, abattoirs, meat shops and hotels across the four Local Government Areas. The distribution of the sample was based on proportion to size using Taro Yamane formula. The result of the study showed that beef marketing comprise of marketers who are married and advanced in age, their mean age were 46.6 years for the abattoirs; 47.5 years for the open market; 46.7 years for the meat shops and 51.9 years for the hotels. The average years of experience for the abattoirs, open markets, meat shops and hotels were 10.5; 12.7; 13.9 and 13.8 years respectively. The result of the study also showed that the distance that the marketers convey their beef to the market ranges from 6km to 15km. Majority of the marketers cover a long distance to convey their beef to the market. The implication of this is that the marketers will have to pay higher cost of transportation in conveying their beef to the market and this will have effect on their sales gross margin. The findings showed that the highest cost was the cost of beef and transportation: the cost of beef and transportation in each of the four different beef market value chains; abattoirs, open markets, meat shops and hotels were ₦255,000, ₦247,000, ₦253,200, ₦264,150; and ₦5479.2, ₦4305.8, ₦4123.4, and ₦4220.6respectively. The average total revenue for each of abattoir, open market, meat shop and hotel were ₦379,650, ₦384,450, ₦436,650 and ₦459,210 respectively. From the gross marigin analysis the largest share of gross margins was earned by abattoir operators who generated an average gross margin of ₦176 041.5 (39.7%) followed by the hotels, ₦150, 149.1 (35.3%), then the meat shops ₦127, 620.6 (32.5%) and finally the open markets ₦111,365.9 (30.1%). Therefore, beef value chain marketing in Delta State is a profitable enterprise. The efficiency of beef marketing under the four different marketing value chains was found to be highest for the hotels (1.56), followed by meat shops (1.35), abattoirs (1.24) and then open markets (1.20). Based on the findings of the study if efforts are made by the marketers in marketing quality beef the marketers will gain higher and more reliable returns and resources just as the customers will gain more satisfaction on the value of money spent on the purchase of beef.},
     year = {2023}
    }
    

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  • TY  - JOUR
    T1  - Profitability of Beef Value Chain Marketing in Delta State, Nigeria
    AU  - Tibi Kentus Nwachukwu
    AU  - Oyem Amos
    Y1  - 2023/09/08
    PY  - 2023
    N1  - https://doi.org/10.11648/j.sjbm.20231103.14
    DO  - 10.11648/j.sjbm.20231103.14
    T2  - Science Journal of Business and Management
    JF  - Science Journal of Business and Management
    JO  - Science Journal of Business and Management
    SP  - 126
    EP  - 132
    PB  - Science Publishing Group
    SN  - 2331-0634
    UR  - https://doi.org/10.11648/j.sjbm.20231103.14
    AB  - The study determined the profitability of beef value chain marketing in Delta State. A two-stage sampling technique was used for the study. The first stage was a purposive selection of four major towns: Asaba in Oshimili North, Warri in Warri South, Agbor in Ika South and Ughelli in Ughelli North Local Government Area of Delta State. These towns were sellected for the study because of the high marketing activity of beef in these places. The second stage involved a random selection of 320 beef marketers in the open market, abattoirs, meat shops and hotels across the four Local Government Areas. The distribution of the sample was based on proportion to size using Taro Yamane formula. The result of the study showed that beef marketing comprise of marketers who are married and advanced in age, their mean age were 46.6 years for the abattoirs; 47.5 years for the open market; 46.7 years for the meat shops and 51.9 years for the hotels. The average years of experience for the abattoirs, open markets, meat shops and hotels were 10.5; 12.7; 13.9 and 13.8 years respectively. The result of the study also showed that the distance that the marketers convey their beef to the market ranges from 6km to 15km. Majority of the marketers cover a long distance to convey their beef to the market. The implication of this is that the marketers will have to pay higher cost of transportation in conveying their beef to the market and this will have effect on their sales gross margin. The findings showed that the highest cost was the cost of beef and transportation: the cost of beef and transportation in each of the four different beef market value chains; abattoirs, open markets, meat shops and hotels were ₦255,000, ₦247,000, ₦253,200, ₦264,150; and ₦5479.2, ₦4305.8, ₦4123.4, and ₦4220.6respectively. The average total revenue for each of abattoir, open market, meat shop and hotel were ₦379,650, ₦384,450, ₦436,650 and ₦459,210 respectively. From the gross marigin analysis the largest share of gross margins was earned by abattoir operators who generated an average gross margin of ₦176 041.5 (39.7%) followed by the hotels, ₦150, 149.1 (35.3%), then the meat shops ₦127, 620.6 (32.5%) and finally the open markets ₦111,365.9 (30.1%). Therefore, beef value chain marketing in Delta State is a profitable enterprise. The efficiency of beef marketing under the four different marketing value chains was found to be highest for the hotels (1.56), followed by meat shops (1.35), abattoirs (1.24) and then open markets (1.20). Based on the findings of the study if efforts are made by the marketers in marketing quality beef the marketers will gain higher and more reliable returns and resources just as the customers will gain more satisfaction on the value of money spent on the purchase of beef.
    VL  - 11
    IS  - 3
    ER  - 

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Author Information
  • Department of Agricultural Economics and Agribusiness Management, Dennis Osadebay University, Awain- Asaba, Nigeria

  • Department of Agricultural Economics and Extension, Delta State University of Science and Technology, Ozoro, Nigeria

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