TABLE OF CONTENTS
Title page — – — – – — — — — i
Certification —
– – — – — — — — ii
Dedication —
– — – – — — — – iii
Acknowledgment — – — – — – — — iv
Table of
Contents — – — – — — – — v
List of figures –
– — — — – viii
List of Tables — – – — – — – — ix
Abstract — – – — —
– — – — x
CHAPTER ONE:
INTRODUCTION
Background to the
Study – – – –
– – 1
Statement of the
Problem – –
– – – 5
Objectives of the
Study – – – –
8
Hypotheses of the Study – – – – 9
Justification for the
Study – – – –
9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
Concept of Market – – – – – –
Concept of Marketing
– – – – –
11
Agricultural
Marketing – – – –
1210
Socio-Economic Characteristics of
Livestock Business Entrepreneurs in Nigeria
— – – – 12
Marketing Channel – – – 14
Promotion in Marketing and Promotional
Tools – 15
Market Structure – – –
19
Market Conduct – – – – 20
Market Performance and Efficiency –
– 20
Marketing margins –
– – – 20
Marketing costs – – – – – 22
Theoretical framework – – – – 24
Theory of Information Diffusion – 24
Theory of Supply — – – – 25
Analytical Framework – – – 28
2.9.1 Gini Coefficient Model – – – – – 28
2.9.2 Marketing margin Analysis – – – 30
2.9.3 Multiple Regression Analysis – – – – – 30
2.9.4 Test of Significance –
– – – – – – 32
CHAPTER THREE:
RESEARCH METHODOLOGY
The Study Area – – – – –
– – 33
Sampling
Technique – – – – – 34
Method of Data
Collection – – – 34
Data Analysis –
– – – – – 33
Model Specification —
– – – 35
3.4.1 .Marketing Margin Analysis – – – 35
3.4.2 Gini Coefficient – – – – – – 35
3.4.3 Multiple Regression Analysis – – – 36
CHAPTER FOUR: RESULTS
AND DISCUSSION
4.1 Socio-economic characteristics of the poultry
feed marketers. 39
4.2 Marketing Channels of Poultry Feeds in
the Study Area 41
4.3 Promotional activities adopted by the
marketers of poultry feeds 44
4.4 Market Concentration among Wholesalers
and Retailers of Poultry Feeds — – 47
4.5 Marketing Margins for Poultry feeds at
wholesale and retail levels 52
Factors that
determine the selling price of poultry feeds at both wholesale and retail levels. 52
Factors that affected
the Wholesale selling Price
— 53
Factors that
determine the retail selling price of poultry feeds 55
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary —
– – –
— – – — 57
Conclusion – – – — 58
Recommendation — – – — 58
REFERENCES — — –
— – – – — 60
APPENDICES
LIST OF TABLES
Table 1: Distribution
of the Local Government Areas According to Agricultural zones — – – – – – – – –
– – – – – – -33
Table 2:
Socioeconomic Characteristics of Poultry Feeds Wholesalers and Retailers —– —
40
Table 3: Promotional
activities adopted by the marketers of poultry feeds 45
Table 4: Distribution
of Sales Income of Poultry feeds Wholesalers and the estimated Gini coefficient
value — – – — 49
Table 5: Distribution
of Sales Income of Poultry feeds Retailers and estimated Gini coefficient
value – 50
Table 6: Factors that
affected wholesale selling price of poultry feeds 54
Table 7: Factors that
affected the retail selling prices of poultry feeds. – 55
LIST OF FIGURES
Figure 1: Poultry
Feed supply Chain — – – – — 4
Figure 2: Levels of
marketing channel — 15
Figure 3: Poultry
feeds marketing channels in Anambra State, Nigeria 42
Figure 4: Lorenz
curve of the distribution of sales income of poultry feeds among
wholesalers — – – – —
– – — – – – – 51
Figure 5: Lorenz
curve of the distribution of sales income of poultry feeds among retailers
— – — – — – 51
ABSTRACT
This study examined
the marketing of poultry feeds in Anambra State, Nigeria. The specific
objectives were to: describe the socio-economic characteristics of the poultry
feeds marketers; identify and describe the marketing channels for poultry
feeds; describe the promotional activities adopted by these poultry feed
marketers; assess the degree of market concentration among wholesalers and
retailers of poultry feeds; determine the marketing margins for poultry feeds at wholesale and
retail levels and ascertain the factors that determine the selling price by the
marketers of poultry feeds. The study was guided by the null hypothesis: There
is no difference in the marketing margins of wholesalers and retailers of
poultry feeds. A survey design was adopted in the study. Data for the study
were collected from a sample of 120 marketers through the use of two sets of
structured and pre-tested questionnaire. The data were presented using
descriptive statistics while Gini coefficient, marketing margins and multiple regression
were used for the analysis. The study showed that males (63.3%) dominated wholesaling, while
females (55%) dominated retail
marketing business of poultry feeds. About 70-75% of them were within the
highly productive age range of 20-50 years. About 11.7% of the retail marketers
attended primary school while 43.3% and 45% attended secondary and higher
institutions, respectively. Majority (86.7%) of the wholesalers bought directly
from producers (feed millers) while 13.3%
bought from other wholesalers. Most (95%) of the retailers made their
purchases through the wholesalers. Marketers purchased poultry feed products
packaged in bags of 25kg weight and distributed same using the same packaging
from the producers. Some retailers also sold in producers’ packaging and /or
smaller measurement. Majority (88.3%) of the wholesalers obtained information
on source of supply through personal contact from others in the same trade or
suppliers’ agents. There was poor marketing information as new product introduction
strategy was also done by personal contact and price reduction. Popular means
of advertisement like radio, television and newspapers were not very common.
Only about 5% of the marketers were influenced through the mass media. There
were high inequalities in sales distribution as well as income among the
marketers as Gini coefficient values of 0.46 and 0.57 were obtained for
wholesalers and retailers, respectively. The mean marketing margin of N138/25kg
bag or 6% for wholesalers was higher than the mean value of N105/25kg bag or 4%
for retailers. There existed a significant (p<0.05) positive correlation
among the selling price, buying price and salary of sales clerk for wholesale price. Loading/offloading cost
and promotional costs exhibited significant (p<0.05) negative correlation
with the wholesale selling price. Analysis of the factors that affected the
retail selling price showed that there existed a significant (p<0.05)
positive correlation among selling price and transportation costs. Salary of sales
clerk exhibited a significant (p<0.05) negative correlation with the retail
selling price.
CHAPTER
ONE
INTRODUCTION
BACKGROUND
INFORMATION
The role of
agriculture in the country’s economy cannot be over- emphasized. Prior to the
oil boom period in the mid-1970’s, it had been the largest foreign exchange
earner for the country. It has evolved from just a means of livelihood to a
business for not only are modern techniques of production employed, but also
the most sophisticated management and marketing techniques. Agriculture
therefore is a wide discipline and poultry keeping is just one industry in the
agricultural set-up (Okafor, 1984).
The main domesticated
avians contributing in one way or the other to the economy of Nigeria are the
domestic fowl, guinea fowls, turkeys, ducks, geese, pheasants and pigeons. The
usefulness of these species are many and there are little or no religious,
cultural and social barriers or prejudices to their rearing or use of their
parts and products in Nigeria (Izunobi, 2002).
The level of animal
protein intake in Nigeria represents only about 10% of the intake in countries
like Denmark, U.S.A., New Zealand and the United Kingdom (Akin, 1976).
According to Izunobi (2002), of the protein intake in Nigeria, poultry meat supplies
only about 20% of the total meat needs of Nigerians. This is grossly
inadequate.
Chicken contains
quality proteins, lipids, carbohydrates, multitude of vitamins, minerals and
pigments. They also possess natural aroma and flavor compounds. Eggs are excellent
food, possessing quality proteins of high biological values (Izunobi, 2002).
Egg, a product of the industry, gives about 3.5g of the total 7.2g animal
protein required for individual dietary need per day (Adene and Oguntade,,
2006).
The poultry industry
provides employment opportunity for the teeming population. The industry, if
desired attention is paid to it by government at all levels, can successfully
absorb a large number of unemployed youths across the country, currently
roaming about in search of unavailable jobs, through its chain of agro-allied
industry; commercial feed and toll milling, poultry products processing,
poultry-marketing, veterinary pharmaceutical, hatchery operation and breeder
farming (Eko, 2009). In addition, the industry, if properly harnessed, can also
serve as source of foreign earnings, complementing the crude oil – the main
source of foreign earnings presently which is responsible for over 90 percent
of our exports. (Adene and Oguntade, 2006).
According to Ali
(2011), since 1986, Nigeria’s import ban on corn has contributed to steady decline in poultry
production. He also observed that Nigerian poultry market had seen prosperous
times. For two decades after the country achieved independence in 1960, poultry
production grew, peaking in 1982 with 40 million commercially reared birds.
Since then, he also stated, the population of birds dipped steadily reaching an
estimated low rate of 6 million in 1997.
Furthermore, Ali added that since production figures for poultry were not
maintained by the government, the only way to estimate the number was by the
amount of feed sold. In 1997, an estimated 225,000 metric tonnes of commercial
poultry feed was sold in the Nigerian market down from 250,000 tonnes in 1995.
The feed milling industry in Nigeria is only producing at about 15 percent of
capacity (Ali, 2011). This faltering market can be traced back to the early
1980’s, when the Nigerian economy collapsed. An unstable government import bans
and intervention efforts by the World Bank caused price realignments that
weakened purchasing power and pushed up the cost of poultry inputs and
products.
Poultry feeds are
animal feed used to feed poultry birds. They are formulated from a mixture of
ingredients, including cereal grains, cereal by-products, fats, plant protein
sources, animal protein sources and by-products, vitamin and mineral
supplements, crystalline amino acids and feed additives compounded in such a
way as to provide essential nutrients for sustaining optimum growth and production.
Poultry feed is a poultry input and its demand is derived from the demand for
the poultry and/or its products. Poultry feeds are categorized in such a way as
to provide specified nutrient, composition for different productive purposes
(Standards Organization of Nigeria [SON], 1977).
The poultry feed is
the nucleus of poultry industry and its development is directly related to that
of the poultry industry. Poultry feed represents the major cost of poultry
production, constituting about 70 percent of the total cost. Of total feed
cost, about 95 percent is used to meet energy and protein requirements, about 3
to 4 percent for major mineral, trace mineral and vitamin requirements and 1 to
2 percent for various feed additives (Ravindran and Blair, 1992).
Compounded poultry
feed can be in form of mash or pellets. There are three types of feed millers
in the poultry industry, namely; custom, toll and integrated farms. The custom
millers mill and market their feeds under registered trade names. The dominant
trade names in the Nigerian market include Top Feeds, Livestock Feeds (Pfizer),
Rainbow Feeds, Guinea Feeds, Animal Care Feeds and Vital Feeds. Some of these
custom millers have adopted franchising as an operational method for achieving
a wider reach across the country. The toll millers are spread across major
locations with significant concentration in small-to-medium scale poultry
farms. They mill feed to the specification of customers (poultry farmers) and
charge a fee (toll) per quantity milled. The customers either bring their feed
ingredients or purchase them from the millers, if the millers have them in
stock. The third category of feed millers is the integrated poultry farmers,
they own feed mills and produce feed for own use (Adene and Oguntade, 2006).