ABSTRACT
The study investigated the economics of fish marketing in
Akwa Ibom State, Nigeria using primary data. Purposive and multistage random
sampling technique was used to collect the data from 105 respondents using
well-structured and pre-tested questionnaire. These data were analysed using
descriptive statistics, concentration ratio, price spread, net profit margins,
marketing margins analyses and multinomial logit (MNL) models. Tests of
significant differences and effects were carried out using analysis of variance
(ANOVA) and t-test techniques. Research results showed that average age for the
fish marketers were 38years for producers, 42years for wholesalers and 46years
for retailers, and also that majority of them were married. The results further
showed that majority of the fish producers and retailers had West African
Senior School Certificate while most wholesalers had First School Leaving
Certificate. Also, the all marketers had average household size of 5 members
with 18years marketing experience for the producers, and 15years for the
wholesalers and retailers, respectively. Furthermore, the study found that the
marketers made use of referrals, price discount and home delivery to attract
customers. The results showed that the market was under weak oligopoly at
concentration ratio of 47%. This implies
that the activities of the largest four fish marketers affected the price and
demand for fish in the market. Further results showed that fish marketing was
profitable with channel 2 having the highest net margin of N141,095 per annum
per processing firm compared to channel 1 (N127,850) and channel 3 (N137,030)
while channel 1 had the highest marketing efficiency of 342% relative to
channels 2 and 3 with marketing efficiencies of 144% and 97%, respectively. The
results indicated that these differences in marketing efficiency among the
channels were significant at P<0.01. This implied that the longer the chain
of distribution, the higher the marketing cost and hence, the lower the marketing efficiency.
Furthermore, the study found that smoke-drying was the predominant method of
processing fish at frequencies of 64% for the producers, 90% for the
wholesalers and 92% for the retailers. Use of hangovers was the dominant method
of storing fish at frequencies of 40% for the producers, 76% for the
wholesalers and 83% for the retailers. Also, motor-cycle was the dominant
method of transportation of fish for the producers and wholesalers at
frequencies of 73% and 61%, respectively, while use of bus/taxi was dominant
for the retailers at frequency of 76%. Further results showed that there were
challenges facing fish marketing at an average of 2.74 on a 4-Point Likert
rating scale. Lack of capital, seasonality of fish business, lack of government
assistance, produce deterioration, lack of storage facilities, poor extension
services and debt were the factors indicted for challenging fish marketing.
More so, the results showed that socioeconomic characteristics accounted for
the vertical differentiation of fish marketing into channels 1, 2 and 3 by 68%,
87% and 92%, respectively. Marital status, household size, value of fish and
membership of cooperative unions were the factors that significantly drove
vertical differentiation of fish marketing positively at P<0.05 while the
effects of age and sex were significant and negative at P<0.05. Firewood
splitting, fish transportation, loading/off-loading of fish, fish packaging,
fish processing and fish smoking were the activities that both males and
females participated in. This implied that the participation of both males and
females will enhance the marketing of fish. The study recommended policies that
will enhance that profitability and efficiency of fish marketing.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Agriculture is the major economic activity of developing economies. In
Nigeria, agriculture provides food for the increasing population; supplies
adequate raw materials to growing industrial sector; is a major source of
employment; generates foreign exchange earnings; and provides market for the
products of the industrial sector (Okumadewa, 1997; World Bank, 1998; Winters,
Janvry, Sadoulet and Stamoulis, 1998; Food and Agriculture Organization, FAO
(2006) as cited in Eze, Lemchi, Ugochukwu, Eze, Awulonu and Okon 2010).
Fish is a
very important agricultural product in the country as it occupies a prime place
in the economy of the country. The term fish is a diverse group of animal that
live and breathe in water by means of gill. Fish is one of the most diverse
groups of animals known to man with over two thousand five hundred species.
There are more species of fish than all other vertebrate (Eyo, 1992). The
fishery sector is estimated to contribute
about 3.5% to Nigeria’s Gross Domestic
Product (GDP), and also provides direct and indirect employment to over six
million people (Kwara State Government, 2010). The employment opportunities
come from different fishing activities such as production, processing,
preservation and transportation (Ali, Gaya and Jampada, 2008). The Central Bank
of Nigeria, CBN (2005) report shows that the contribution of the fishery sector
to the GDP of Nigeria rose from N76.76
billion in 2001 to N162.61 billion in 2005.
Fish is a
very important agricultural product in Nigeria, and is largely consumed in the
country especially due to its rich nutritional and medicinal values. More so,
the large coastal area and continental shelf available in the country makes
diverse varieties available in different areas at affordable prices. Despite
these rich coastal and continental resource base of the country, demand for
fish far exceeds production, resulting in the importation of over 800,000
metric tonnes of fish annually (FBS, 2007). This trend may not change in the
nearby future considering the rising population of the country and the
increasing distance between fish producers and consumers. This therefore calls
for efficiency in fish marketing. Furthermore, fish is the most important
animal protein food available in the tropics, and this could account for its
large consumption in the country. In Nigeria, fish constitutes 40% of protein
intake (Eyo,1992: Federal Department of Fishery, FDF, 2000), while, according
to Adekoya and Miller (2004), fish and fish products contribute more than 60%
of total protein intake in adults especially in rural areas. Amiengheme (2005)
asserts that nutrient from fish is superior to all terrestrial meats such as
beef, mutton, pork and chicken being a rich source of high quality animal
protein and also contains highly digestible energy. More so, it is a good
source of sulphur and essential amino acids such as lysine, leucine, valine and
arginie. Fish is a good source of thiamine and polyunsaturated fatty acids, fat
soluble vitamins such as vitamins A, D E and K, and water soluble vitamins for
example, B complex, and minerals, such as,
calcium, phosphorous, iron, iodine and selenium. According to Ovie and
Raji (2006), Fish contains omega 111 fatty acids that are known to reduce
cardiovascular diseases, hypertension and arteriosclerosis, thus becoming a
preferred source of protein for those nearing 50years and above. These fatty
acids are also known to enhance good brain cell development in developing
foetus,(thus vital diet for pregnant women) and intelligent quotient (IQ) in
developing children (FDF,2005). Hence it is evident that fish and fisheries are
crucial to the economy and health of the nation.