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

Abstract

AbstractThis 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 equation image 9,790 (=US$81.58) per 250 kg dressed meat, with a net return of equation image 8,605 (=US$71.71) and an average sales receipt of equation image 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