MARKETING MARGIN DIFFERENTIALS AT THREE LEVELS OF THE EGG DISTRIBUTIVE CHAIN IN HBADAN METROPOLIS

Abstract

corresponding marketing functions performed by three classes of poultry
egg traders in Ibadan Metropolis. Analysis of the socio-demographic
characteristics of traders revealed that egg marketing is a low capital venture,
dominated by young females and the capital for operating the venture was
procured from personal and informal credit sources. Empirical analysis
showed that a marketing margin of PJ182.68, which constituted 95.9% of
producer price, was added to the farm-gate price of a crate of eggs en route
the final consumers. This high marketing margin was attributable to the
high facilitating costs and risk involved in the egg trade. The average sales
price per crate was F1245.05, F1306.08 and F2373.18 by the wholesalers, subwholesalers
and retailers respectively. There was an almost even distribution
of margins among the three groups of traders. The profit per crate were
W27.81, FT32.91 and N36.23 while the returns on capital invested in marketing
were L2.80%, 12.05% and 10.75% respectively for wholesalers, subwholesalers
and retailers. The study concludes that there is no evidence of
exploitation among these key players in the marketing chain. However, since
the sub-wholesalers and retailers perform the same functions, it is suggested
that the sub-wholesalers be eliminated from the chain of distribution by
empowering retailers financially through trading loans so that they can sell
larger quantities of eggs. This will shorten the distributive chain and result
in lower final retail price.