Market structure and performance of value chain actors in hides and skins processing and marketing in Nigeria

Abstract

The study was designed to investigate the Structure and Performance of value chain actors in hides and skins processing and marketing in Nigeria. Specifically, the study described the structure of hides and skins processing and marketing, estimated the marketing margin and marketing efficiency. One hundred and six respondents were selected from Kano, Anambra and Lagos states for the study. The result of the market structure revealed that there was no barrier to entry and exit of the business of hides and skins processing and marketing. Registration was compulsory for tanners and hides and skins wholesalers while it was optional for ‘pomo’ wholesalers, leather wholesalers and butchers. Though, the registration fee for skins wholesalers was very small (about ₦500), Result of the market performance of hides and skins processing and marketing revealed that the marketing margin for leather final consumer was 48% while that of ‘pomo’ final consumers was about 44%. Marketing efficiency of tanners was about 176% while that of ‘pomo’ wholesalers was 188%. There was high performance in hides and skins processing and marketing in Nigeria. Based on the findings, it was recommended that public or private market information service rendering agencies should be involved in the area of hides and skins processing and marketing in providing reliable and timely information.

Keywords: Structure, performance, value chain actors, hides and skins, Nigeria.