Marketing margin and determinants of net returns of beef marketing in southeast Nigeria

Abstract

This study examined: the marketing costs, margins and returns of retailed beef meat in southeast Nigeria; factors influencing the traders' net returns; problems associated with marketing of beef; and the socio-economic characteristics of respondent traders. Sixty respondents were selected at random, with 20 respondents from each of three purposively selected markets in the study area. A structured interview schedule and personal observations were sources of primary data. The field data were analysed using cost-return principles, multiple regression analysis and descriptive statistics. The gross margin for trading was 9,790 (=US$81.58) per 250 kg dressed meat, with a net return of 8,605 (=US$71.71) and an average sales receipt of 78,400 (= US$653.33). The cost of meat, transport costs, other costs (garage fees, storage, taxes), experience in the trade and level of education significantly (p < 0.05) affected the traders' net returns. Insufficient capital, inadequate stock supply, high transport cost and storage were identified as the major problems associated with meat trading in the study area. Copyright © 2007 John Wiley & Sons, Ltd