ECONOMIC ANALYSIS OF DRIED FISH MARKETING PERFORMANCE IN BENUE STATE, NIGERIA

Abstract

This study examined the economic analysis of dried fish market performance in Benue State, Nigeria. It analysed the socio-economic characteristic of dried fish marketers, marketing performance and determinants of marketing performance in Benue State, Nigeria. A multistage sampling technique was used to select 226 dried fish marketers from Makurdi, Otukpo, Guma, and Agatu LGAs in the State. Data collected were analysed with the aid of descriptive statistics and Marketing Margin, Marketing Efficiency, Gross Margin, and Multivariate multiple regression. The study revealed that majority of the rural (84.0%) and urban (98.9%) dried fish marketers were females, aged 36-50 years for both rural (43.7%) and urban (49.4%) areas. Majority of the rural (88.2%) and urban (77.5%) dried fish marketers were married with household size of 5-12 persons. Majority (56.3% and 51.7%) of the rural and urban dried fish marketers respectively spent mean of seven years in formal education and had mean of 16 years and 14 years dried fish marketing experience for the rural and urban dried fish marketers respectively. Furthermore, it was revealed that majority (84.9% and 85.4%) of the rural and urban marketers respectively were members of dried fish marketers’ association who had less than one million naira as their marketing return. Costs and returns showed that the cost of purchase took 95.80% and 94.10% of the total variable cost for the rural and urban dried fish marketers respectively. Dried fish marketing is profitable as the result showed the percentage marketing margin per kilogram (kg) of dried fish sold by rural and urban marketers as 25.38% and 12.92% respectively. It also showed that an average rural and urban marketer earns ₦1433.32 and ₦674.10 as gross margin respectively with marketing efficiency of 28.37% and 8.06% respectively for rural and urban marketers. The result revealed that the coefficient of the quantity marketed in the rural and urban areas were -3.33 and -4.19 respectively, both statistically significant at 5% level indicating the existence of scale economy. Finally, income, sex, fish purchase price, average sales, and processing cost were the significant determinants of performance in the study area. The study therefore, recommends the unemployed should be encouraged and empowered to embark on the business since it is profitable. Also, necessary facilities and funds be provided to boost expansion as well as marketing performance of the dried fish marketers in Benue State.