Profitability and cost efficiency of broiler marketing in Rivers State, Nigeria

Abstract

This study was conducted to determine the profitability and cost efficiency of broiler marketing in Rivers State, Nigeria. A total of 160  broiler marketers were randomly selected in the study area. Data were collected using well-structured questionnaire and personal  interview. Descriptive statistics and the stochastic frontier cobb-Douglas cost function were used to analyze the data. The broiler  marketing activities were dominated by females. 96.4% of the broiler marketers had formal education with mean age of 42 years and an  average of 12 years marketing experience. Age, marital status, level of education and experience were the socioeconomic variables that  influence the marketing of broilers. The result showed that the business is profitable with a net profit of N42,018.97 per one-week  marketing cycle, benefit cost ratio was 0.15 and performs 46 marketing cycle per year. The mean cost efficiency of broiler marketing was  52.89%. The major constraints in broiler marketing were insecurity, high cost of inputs, lack of access to credit and general economic  condition in Nigeria. The study recommended that the broiler marketers should explore and make use of the new and available technologies using their cell phone to expand their e-marketing frontiers in online platforms while Government and other Development  agencies in Nigeria should provide security and good infrastructure particularly good roads, electricity and good water supply to lower  marketing cost that will improve the cost efficiency of the marketers.