ECONOMIC ANALYSIS OF POULTRY MEAT MARKETING IN PORT-HARCOURT CITY OF RIVERS STATE
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This study was aimed at analyzing the profitability of poultry meat marketing and the constraints limiting their operations in Port-Harcourt, Rivers State. The poultry farm business has emerged as the most commercialized and fastest expanding segment in the animal husbandry subsector but still faced with lot of challenges. The population of the study comprised some registered poultry farm enterprises in Port-Harcourt. A sample size of 133 poultry farm enterprises was selected using random sampling technique. Structured questionnaires were the instrument used for data collection, the analytical tool used was simple percentage. The results of the analysis showed that majority (96.7%) of the respondents were males, also majority of the marketers are married. Budgeting analysis indicated that poultry product marketing is profitable, while regression analysis showed that stock capacity, variable, and fixed costs including labour, feed, and equipment were the significant factors affecting poultry farm business in the study area. These costs increase as the size of the business increases. An effective and cheap means of storage facility, feed and chicken processing is required to encourage production and reduce marketing cost.
1.1 Background of the Study
The ever-increasing demand for protein has been one of the major challenges facing Nigeria, as high population growth and growing income lead to increasing demand for poultry products in the region (World Health Organization 2010). Livestock production is one of the important components of agriculture. Poultry meat business has expanded strongly in Nigeria at an average rate of 5.7 percent per year, higher than crop and other agriculture service sectors.
According to Mgayen, (2006) and Epprecht, (2005) as citied in Hanh et al. (2007) almost 80% of rural households are involved in Poultry production through backyard and garden raising, because this is a traditional industry linking with rice cultivation. Connecting crop and animal production, especially with Poultry such as chickens and ducks is a common component of mixed farming system in rural areas, generating an integral part of village life with important social functions. Poultry production generates 5-10 percent of rural family income or even 80 to 100 percent of total household income. It contributes almost all of the poultry products consumed in the villages (Weaver, 2009).
Poultry is the domesticated species of bird reared for production of eggs and meat. Even though, the term poultry is used for chickens, duck, guinea fowl and geese. Poultry is an important sub sector of livestock and its important can be judged from the fact that poultry share in GDP is 2.0 percent. It emerged as check and balance force for stability of the prices of beef and mutton. Poultry production has emerged as a good substitute of beef and mutton. Poultry meat and egg offer considerable potential for bridging the nutritional gap in view of the fact that high yielding exotic poultry are easily adaptable to our environment and the technology of production is relatively simple with returns on investment appreciably high.
Poultry is a sub-sector in the livestock industry constituting a major component of the agricultural economy. The sector provides animal protein to the populace as well as employment for a considerable percentage of the population. According to FAO Report (2010), poultry comes fourth among sources of animal proteins for human consumption in Nigeria and contributes about 27% of the national meat production. Okoli et al. (2004) revealed that 85% of rural families keep small ruminants and local fowls primarily as an investment and sources of manure or meat at home or for use during festivals. In spite of this, livestock production is not keeping pace with the protein requirements of the rapidly increasing Nigeria population. Demand is more than supply. Since the responsibility of any civilized government is to provide adequate food and assure an atmosphere free from hunger and malnutrition, the Federal Government of Nigeria placed a ban on importation of frozen chicken and turkey parts to encourage massive poultry production locally (Agricultural Transformation Agenda, 2012). This policy has encouraged many investments in poultry production in Nigeria. It has therefore, becomes a full time job for many and is considered to be a commercially viable enterprise.
Considering poultry production as a commercially viable business demands the application of the knowledge of farm management (Olukosi and Ogungbile, 1989) in the area of economic measurement of it profitability, with the utmost aim of guiding the farmers in the appropriate use of resources/combination to maximize profit and encourage potential entrants to increase output and bridge the gap between national demand and supply of animal protein.
1.2 Statement of the Problem
The importance of animal protein apart from its palatability is undisputed, animal protein provides man with high quality food nutrients for growth and tissue replacement. The Nigerian government in an attempt to eradicate the problems associated with lack of protein has always resorted to mass importation of meat. Until the Obasanjo led administration put more effort towards self-sustainability in poultry production by placing ban on the importation of frozen chicken. The problem which solution is sought is that of harmonizing or balancing the shortage in supply caused by the ban on importation of frozen chicken.
According to the world health organization standard (Oruseibio et al), Nigeria like most other developing countries is faced with inadequate supply of animal protein. Agricultural policy in Nigeria has emphasized increase agricultural production through a range of policies and strategies to obtain self-sufficiency in food production without achieving these aims (federal government of Nigeria). Over the years, Nigeria government and individuals have tried to design policies that will encourage increased broiler production. These were due to the profitability of the business.
Today the, decline in the growth of poultry industry has continued unabated. It is against this background that this study was undertaken to examine the economic analysis of poultry meat marketing in Port-Harcourt, Rivers State.
1.3 Objectives of the Study
The primary aim of this study is to examine the economic analysis of poultry meat marketing in Port-Harcourt, Rivers State. The specific objectives are:
- To examine the socio economic characteristics of poultry meat marketing in Port-Harcourt.
- To examine the management practices, profitability, factors affecting productivity and problems militating against poultry farming in Port-Harcourt.
- To analyze the resource use efficiency in poultry meat marketing.
- To outline relevant recommendations based on the findings this research.
1.4 Research Questions
The following research questions were formulated by the researcher to guide the study;
- Is the socio economic status of poultry meat marketing in Port-Harcourt low?
- Does the decline in the growth of poultry industry affecting poultry meat marketers in Port-Harcourt?
- Is poultry meat production in the nation still terribly insufficient as reflected in the wide gap between demand and supply of the product?
- Is there any significant relationship between poultry meat marketing and economic growth in Nigeria?
- What is the demand level of poultry meat in Nigeria as compared to other source of meat protein like turkey?
1.5 Research Hypothesis
H0: There is no significant relationship between poultry meat marketing and economic growth in Nigeria.
H1: There is a significant relationship between poultry meat marketing and economic growth in Nigeria.
H0: The decline in the growth of poultry industry is not affecting poultry meat marketers in Port-Harcourt.
H2: The decline in the growth of poultry industry is affecting poultry meat marketers in Port-Harcourt.
1.6 Significance of the Study
The study on economic analysis of poultry meat marketing is timely and imperative in the sense that to diversify our economy, we need to bridge the lapses in the agricultural sector to boost the strength of agriculture in Nigeria. It is believed that at the completion of this study, the findings will significantly encourage the private sector investment by revealing the returns or profitability accruable from poultry meat marketing. The findings of this study will help improve the level of protein intake in the study area by making recommendations that will help to counter the effects of problem encountered in broiler production. The findings will also add values to the ministry of agriculture, local poultry farmers, poultry meat industries and poultry business executives, individuals and the general public. It is expected that at the end of this research. Solution to the existing problems militating against the growth and development of the poultry is proffered as feedback to the poultry farmers in Port-Harcourt Rivers State, Nigeria.
1.7 Scope and Limitation of the Study
This study focuses on economic analysis of poultry meat marketing in River State; to justify a good content analysis the researcher tailored her research to some selected registered poultry farm enterprises in Port-Harcourt. In the course of the study the researcher encountered the following constraint;
Financial constraint: All the poultry enterprises in Port-Harcourt metropolis should have been studied but for the high cost of transportation during the period of data collection and the fear (by entrepreneurs) that the financial information to be collected will expose them to the problem of higher levies/fees and taxes.
Inadequate Materials: Scarcity of materials was also another hindrance as the researcher finds it difficult to lay hands on most of the desired journals and publications which could contribute immensely to the success of this research work.
Time: the time at the disposal of the researcher which was allocated for the study was a major limitation as the researcher had to combine other academic activities with the study.
1.8 Definitions of Terms
Poultry: Poultry are domesticated birds kept by humans for their eggs, their meat or their feathers. These birds are most typically members of the super order Galloanserae, especially the order Galliformes.
Analysis: Analysis is the process of breaking a complex topic or substance into smaller parts in order to gain a better understanding of it.
Economic growth: Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.
Poultry meat: Poultry can be defined as domestic fowls, including chickens, turkeys, geese and ducks, raised for the production of meat or eggs and the word is also used for the flesh of these birds used as food.
Marketers: A person whose duties include the identification of the goods and services desired by a set of consumers, as well as the marketing of those goods and services on behalf of a company.
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