Profit Margin Assessment of Sheep Marketing: A Panacea for Sustainable Small-scale Livestock Enterprise in Gombe State, Nigeria
Abstract
This paper assessed the profitability of small-scale sheep marketing in Gombe Metropolis. Four sheep markets were purposively selected for their popularity in small ruminants marketing. A multi-stage sampling technique was used to select 91 sheep marketers these markets. Data were collected using structured questionnaire and were analysed using descriptive statistics, farm budget and maximisation of consumer satisfaction models. The result revealed that purchasing cost for ram and ewe constituted 92.59% and 91.50% of the total marketing costs respectively. The result further revealed the average net income of ₦4,922.46 ($13.72) per head of animal was realised. The gross and operating ratios for the respective animals were < 1; meaning that the business was profitable. Also, the returns per naira invested for ram and ewe were ₦0.17 ($0.00048) and ₦0.18 ($0.0005) respectively. The marketing coefficient (134.80%) of Tike-babba market, revealed to be most efficient. Inadequate capital was critical; this was attributed to insufficient sources of credits. However, improvement in the existing infrastructural facilities will help promote expansion of the present scale of the enterprise operations. Governments and other financial institutions should also do more to extend funds in the form of soft loans to the marketers, so as to improve efficiency.
Keywords: Market; Profitability; Efficiency; Sheep; Small-scale; Gombe
JEL Classification: L10, Q13
Full Text:
PDFReferences
Adegeye, A. J., & Dittoh, J. S. (1985). Essentials of Agricultural Economics, Ibadan, Impact Publishers Limited.
Adejobi, A. O. (2005). Cowpea Marketing in Maiduguri, Borno State: Investigation on building a food Marketing Policy Evidence base in Nigeria. Scholarly Journal of Agricultural Science, 4(8), 449–459.
Adekanye, T. O. (1988). A Rice Grading Scheme for Nigeria, In Adekanye T. O. (eds): Readings in Agricultural Marketing (1988), Lagos, Longman Group Limited.
Adekanye, T. O. (2008). Marketing Margins for Food: Some Methodological Issues and Empirical Findings for Nigeria. Canadian Journal of Agricultural Economics, 30(3), 333-344.
Afolabi, J. A. (2007). Evaluation of Poultry Egg Marketing in South Western Nigeria. International Journal of Poultry Science, 6(5), 362–366.
Alamu, J. F., & Olukosi, J. O. (2010). Simplified Research Methodology: Principles and Practices: (revised edition), Zaria, Great Glory Publishers.
Ali, A., & Denga, I. D. (1983). An Introduction to Research Methods and Statistics in Education and Social Sciences, Jos, Savannah Publishers Limited.
Alkali, H. A., & Saleh, A. (2013). Socio-economic Profile of Camel Herders in Sokoto State, Nigeria. International Journal of Food and Agricultural Research, 10(1&2), 105–108.
Awotide, D. O. & Ajala, S. O. (2007). Performance and Determinants of Maize Grain Marketing in Northern Nigeria. Proceedings of the 9th Annual National Conference of the Nigerian Association of Agricultural Economics (NAAE), Abubakar Tafawa Balewa University Bauchi. 5th – 8th November, Pp 329 – 335.
Baruwa, O. I. (2013). Empirical Analysis of Costs and Returns to Goat Production under Tropical Conditions. Journal of Livestock Science, 4(1),44–50.
Bipradas, R. (2014). Studies on Marketing Efficiency of Agricultural Products in India: A Critical Evaluation. International Journal of Multidisciplinary Research and Development, 1(7), 205–210.
Central Bank of Nigeria Annual report; C.B.N. (1999). Lagos, Nigeria, December, 99pp.
Collinson, C. D., Kleih, U., Burnett, D. G., Ferris, R. S. B., Jagwe, J. N., & Muganga, A. K. (2002). Transaction Costs Analysis: Plan for the Modernisation of Agriculture. The Natural Resources Institute and the International Institute of Tropical Agriculture (FoodNet). Consultative Group on International Agricultural Research (CGIAR). Washington DC, USA.
Daneji, M. I., Malumfashi, A. I., & Muhammed, S. G. (2006). Profitability Analysis of Groundnut Production in Bauchi L.G.A. of Bauchi State, Nigeria. Savannah Journal of Agriculture, 1(2), 165-170.
Fakayode, S. B., Omotesho, O. A., Babatunde, R. O., & Momoh, A. A. (2010). The Sweet Orange Market in Nigeria - How Viable? Research Journal of Agriculture and Biological Science, 6(9), 395–400.
Food and Agriculture Organisation; F.A.O. (2006). Addressing Marketing and Processing Constraints that Inhibit Agri-food exports: A guide for policy analysts and planners. Agricultural Service Bulletin No. 160. Rome. Italy. 109pp.
Giroh, D. Y., Umar, H. Y. & Yakubu, W. (2010). Structure, Conduct and Performance of Farm Gate Marketing of Natural Rubber in Edo and Delta States, Nigeria. African Journal of Agricultural Research, 5(14), 1780–1783.
GOSEEDS. (2007). Gombe State Economic Empowerment and Development Strategy: Handbook, Abuja, Dandafid Nig. Ltd.
G.S.G. (2015). Gombe State Government: Profile. Retrieved on 15/03/2017; from:
http://www.tiptopglobe.com/cities-nigeria?region=55&n=Gombe&a=G.
Haliru, Y. U., & Ibitoye, S. J. (2014). Evaluation of Market Structure and Efficiency of Gum Arabic Marketers in North-Eastern Nigeria. Asian Journal of Management Sciences and Economics, 1(1), 1–11.
Haruna, U., Sani, M. H., Danwanka, H. A., & Adejo, E. (2012). Economic Analysis of Fresh Tomato Marketers in Bauchi Metropolis of Bauchi State, Nigeria. Nigerian Journal of Agriculture, Food and Environment, 8(3), 1–8.
Iheanacho, A. C. (2005). Structural Characteristics and Performance of Retail Marketing of Egg in Maidugri Metropolis of Borno State Nigeria. Journal of Sustainable Development in Agriculture and Environment, 1(4), 70–76.
Iheanacho, A. C., & Ali, E. A. (2010). Economics of Sahelian Goat marketing: A case study of Maiduguri Metropolis Borno State. Journal of Veterinary Science, 9(1), 234-246.
Ike, P. C. & Chukwuji, C. O. (2005). Efficiency Measurement of Cashew nut marketing in Enugu State, Nigeria. Journal of Agriculture, Food, Environment and Extension, 4(1), 46-49.
Issahaku, H., Paul, K. N., & Yazidu, U. (2012). Structure, Conduct and Performance of Tomato Marketing in Ghana. Journal of Economics and Sustainable Development, 3(10), 222-235.
Jongur, A. A. U., & Ahmed, B. (2008). Distribution Efficiency of Sorghum Marketing in Selected Areas of Adamawa Central Zone of Nigeria. Bowen Journal of Agriculture, 5(1&2), 63 – 71.
Kolo, A. (2015). Economics of Sheep Marketing in Dambam Local Government Area of Bauchi State, Nigeria. Unpublished M.Sc. Thesis; Department of Agricultural Economics and Extension, Abubakar Tafawa Balewa University Bauchi.
Mafimisebi, T. E. (2012). Spatial Equilibrium, Market Integration and Price Exogeneity in Dry Fish Marketing in Nigeria: A Vector Auto-regressive (VAR) Approach. Journal of Economics, Finance and Administrative Sciences, 17(33), 31-37.
Mafimisebi, T. E., Bobola, O. M., & Mafimisebi, O. E. (2014). Fundamentals of Cattle Marketing in Southwest, Nigeria: Analyzing Market Intermediaries, Price Formation and Yield Performance. Journal of Applied Tropical Agriculture, 19(1), 30-38.
Maikasuwa, M. A., & Jabo, M. S. (2014). Analysis of Sheep and Goats Marketing in Sokoto Metropolis, Sokoto State, Nigeria. International Journal of Agricultural Sciences and Veterinary Medicine, 2(1), 185-198.
Makka, B. T. (2009). Economic Analysis of Tomato Production in Yamalta-Deba LGA, Gombe State, Nigeria. Unpublished M.Sc. Thesis; Department of Agricultural Economics and Extension, ATBU, Bauchi.
Nasiru, M., Haruna, U. & Garba, A. (2013). Economics of Livestock Marketing in Gamawa Local Government Area, Bauchi State, Nigeria: Repositioning Africa Agriculture by Enhancing Productivity Market Access Policy Dialogue and Adapting to Climate Change. 8th AFMA Conference, Moi University press, Pp 411 – 424.
Nigerian National Livestock Project Division, NLPD: (1992): Survey in Kaduna, Nigeria, Vol. 58, Pp 175 – 177.
Nnamdi, A. (2000). Research Methodology in the Behavioural Sciences, Lagos, Longman Nigeria Plc.
Olagbaju, J. & Falola, T. (1996). Post-Independence Economic Changes and Development in West Africa”: An Economic History of West Africa since 1750, Ibadan, Rex Charles.
Olaoye, J. O. & Rotimi, A. O. (2010). Measurement of Agricultural Mechanization Index and Analysis of Agricultural Productivity of some Farm Settlements in South West, Nigeria”.Agricultural Engineering International: the CIGR Manuscript, Vol. XII, No. 1372.
Olukosi, J. O. & Erhabor, P. O. (2005). Introduction to Farm Management Economics: Principles and Applications, Zaria: Agitab Publishers Company.
Olukosi, J. O. & Isitor, S. U. (2005). Introduction to Agricultural Marketing and Prices: Principles and Applications, Abuja, Living Books Publishers Company.
Olukosi, J. O., & Abraham, O. O. (2008). Introduction to Agricultural Production Economics: Principles and Application, (3rd eds.), Abuja, Nigeria, G. U. Publications.
Okeke, K. I. (2007). Economics of Cattle Marketing in Jos Plateau State Nigeria, Implications for Efficient Market Development and Sustenance in Nigeria. Proceedings of the 9th Annual National Conference of the Nigerian Association of Agricultural Economics (NAAE), Abubakar Tafawa Balewa University Bauchi. 5th – 8th November, Pp 142 – 146.
Okewu, J., & Iheanacho, A. C. (2015a). Socio-economic Characteristics of Goat Marketers in Benue State, Nigeria. ARC Journal of Social Sciences and Humanities, 1(1), 54-66.
Okonkwo, K. N. (2013). Analysis of Poultry Feeds Marketing in Ahiazu-Mbaise Local Government Area of Imo State. Journal of Marketing and Consumer Research, 1(2): 76-82.
Osinowo, O. A. (1999). Strategies towards Enhancement of small ruminant Productivity by small scale farmers in the Sahelo – Sudan Savanna areas of Nigeria. Proceedings of the International Seminar; on promoting sustainable small-scale livestock production towards reduction of malnutrition and poverty in rural and sub-urban families in Nigeria. Held in Zaranda Hotel, Bauchi, March, 7th – 11th, Pp 42 – 53.
Otokiti, S. O. (2005). International Business: How to Get Started in International Business Environment, Lagos, Pumark Publishers Nigeria Limited.
Rangasamy, N., & Dhaka, J. P. (2008). Marketing Efficiency of Dairy Products for Co-operative and Private Dairy Plants in Tamil Nadu. A Comparative Analysis. Journal of Agricultural Economic Research, 2(1), 235-242.
Sahib, B., Aliyu, A., & Bakoshi, J. S. (1997). National Agricultural Research Plan, 1998-2010: Federal Ministry of Agriculture, Abuja, Nigeria. Pp. 3 – 35.
Saleh, A., Kolo, A., Idi, S., Sani, M. H. & Ochi, J. E. (2015). Profitability and Marketing Efficiency of Small-scale Groundnut Oil Processing in Gombe Metropolis Gombe State, Nigeria. Proceedings of the 29th Annual conference of the Farm Management Association of Nigeria (FAMAN), held at the Faculty of Agriculture, Federal University Dutse, Jigawa State,
Nigeria.” 23rd – 26th November, Pp 237 – 248.
Sandika, A. L. (2011). Impact of Middlemen on Vegetable Marketing Channels in Sri Lanka. Tropical Agricultural Research & Extension, 14(3), 2514 – 2523.
Tijjani, B. A., Ismail, A., Goni, M., & Fannami, A. M. (2014). Analysis of Conduct and Performance of Dried Fish Market in Maiduguri Metropolis of Borno State, Nigeria. Journal of Economics and Sustainable Development, 5(5), 38-46.
Umar, H. Y., Otitolaiye, J. O., & Opaluwa, H. I. (2011). Evaluation of Acacia spp (Gum Arabic) Market Structure, Conduct and Performance in Borno State, Nigeria. Journal of Agriculture and Social Science, 7(1), 17-20.
Usman, H., & Nasiru, M. (2005). Commodity Chain Analysis of Cattle Marketing in Nigeria; A case study of K.R.I.P Area Kano State. A report submitted to ADENI Project/NAERLS, Zaria. April 2005.
DOI: http://dx.doi.org/10.17977/um002v10i12018p103
Refbacks
- There are currently no refbacks.
ISSN: 2086-1575 E-ISSN: 2502-7115
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.