PAPER TITLE :FUNDAMENTALS OF CATTLE MARKETING IN SOUTHWEST, NIGERIA: ANALYZING MARKET INTERMEDIARIES, PRICE FORMATION AND YIELD PERFORMANCE
APPLIED TROPICAL AGRICULTURE | VOLUME 19 NUMBER 1 2014
- Author(s) : Mafimisebi T.E. , Bobola O.M.1 & Mafimisebi, O.E.
An understanding of how cattle market works is important issue for sustainable commercialization of cattle production which is aimed at increasing accessibility to and affordability of beef. This paper examined the fundamentals of cattle marketing in Southwest, Nigeria, using primary data collected from 120 respondents selected through multi-stage sampling technique. Data analytical tools included descriptive statistics, budgeting formula and price formation strategy model. Empirical results showed that the market is dominated by males (87.5%). Majority of market intermediaries (64.0%) was less than 50 years and had formal education (68.0%). The three most important intermediaries were dealers, retailers and brokers. Transportation accounted for 74.3% and 46.2% of total variable cost incurred by dealers and retailers, respectively. Cattle marketing was profitable with gross margin per head of cattle sold being N 6,548, N 4,655 and N 2,342.50, respectively, for dealers, retailers and brokers while profitability ratio was 1.09, 1.07 and 1.03, respectively. The factors considered highly important in cattle price formation included body condition, payment mode and type of buyers while breed, seller category and colour were the least important factors. The constraints to cattle marketing included insufficient capital (85.0%), poor roads (83.5%) and insecurity (79.9%). The study concluded that the cattle market is well organized and the venture is a fairly profitable potential source of employment. Strengthening marketing institutions through capacity building for stakeholders, rail system resuscitation and fixing of bad roads were recommended as steps necessary to enhance the commercialization and performance of cattle marketing.