Market structure, conduct and performance of beef marketing: Evidence from Southeast, Nigeria

Abstract

In recent times, market structure and conduct has been increasing in agricultural food retailing sector, raising concerns about increased retail price competition and have heightened opportunities for exploitation in consumer markets with far reaching impact on the performance of food distribution system particularly beef. This paper investigates the market structure, conduct and performance of beef market in Southeast Nigeria. A multistage sampling technique was adopted in the selection of retail beef markets and beef traders for the study. Data for the study were collected using structured questionnaire administered to 270 traders who were selected from 30 spatially separated retail beef markets. Frequency count, mean, percentage, marketing margin analysis, herfindahl index and marketing efficiency index were used for data analysis. The results showed that male gender dominate (76.3%) the beef marketing sphere with an average trading experience of approximately 9 years. The organizational structure for beef marketing system as showed by the Herfindahl index was 0.37 indicated that retail beef marketing system was a relatively perfect competition. The marketing margin, cost and efficiency estimates showed that on the average a trader incurred ₦1,040.74 cost with a realizable net margin of ₦354.32 per kilogramme of beef sold. Marketing margin and marketing efficiency were found to be 30.32% and 34.05% respectively suggesting that retail beef marketing is a viable enterprise and the traders were relatively efficient in carrying out trading activities in the beef marketing system. There is need for strong market linkages across beef marketing chain and marketing agents in the chain to help retail beef traders get appropriate price for their product, reduce undue charges, involvement of middle men and minimize the cost incurred in marketing.