Profitability Analysis of Smoked Fish Marketing in Ilaje Local Government Area of Ondo State, Nigeria

Abstract

: This paper assessed the profitability of smoked fish marketing in Ilaje Local Government Area of Ondo State. A multi-stage random sampling procedure was used to select one hundred and twenty (120) respondents using a well-structured questionnaire. Descriptive statistics, gross margin analysis, benefit-cost ratio and production function using an ordinary least square method were employed to analyse the field survey data. The results showed that on average, majority of the marketers were around 40 years of age. Many (90.0%) of the traders were female household heads with 14 years of marketing experience. The result revealed that 80% of the respondents were educated with a mean household size of 9 persons. The total cost and revenue were ₦64,808.0 and ₦125,000.0 per month, respectively, while the gross margin and net income for the sales of 50kg of smoked fish were ₦63,641.97 and ₦60,191.97, respectively per month. The profitability of selling smoked fish was positively and significantly impacted by household size, fish marketing experience and educational status of respondents who attained secondary school education at the 1% level. The study also found that gender, age of the respondent, cost of transportation and miscellaneous operating cost of smoked fish marketing had a negative influence on their net margin. Based on these findings, it is recommended that policies that will increase the level of education and participation of young people in fish trading should be encouraged and factored into policies related to fish production and marketing.