Profitability Analysis of Three Methods of Suya Production and Marketing in Maiduguri metropolitan Council, Borno State, Nigeria

Abstract

The study determined the economics of alternative methods of Suya production and marketing in Maiduguri Metropolitan Area in Borno State of Nigeria. Data were obtained from 108 respondents using questionnaire and oral interview schedule. Descriptive statistics, the gross margin, Ginni coefficient, market margin and average cost function were used as analytical tools. The findings of the study indicate that the three major types of Suya in the study area were Tsire, Balangu and Kilishi. Estimated gross margin per kilogram of meat used in preparation of Kilishi, Balangu and Tsire were N150, N 32 and N 114, respectively. The returns to labour were N 3.13, N 1.95, N 2.2 for Kilishi, Balangu and Tsire producers, respectively. The returns to other variable costs were 29 kobo for Kilishi and Tsire producers and 1 kobo for Balangu producers. The benefit-cost ratios were estimated as N 1:27:1. N 1.25:1 and N 1.1:1 for Kilishi, Tsire and Balangu production and marketing enterprises, respectively. The marketing margins for Kilishi, Tsire and Balangu were estimated as
37.45%, 43.39% and 21.56%, respectively. Analysis of the market structures shows that all the Suya types were differentiated and market knowledge imperfect. The Ginni coefficients for Tsire and Balangu Suya types were similar (0.5), with many producers and buyers and relatively free entry into the market, depicting monopolistic competitive structure. In addition to differentiated products and imperfect market knowledge, Kilishi market had a Ginni Coefficient of 0.2, few producers and buyers
with restricted freedom of entry, typical of oligopolistic competition. There is absence of scale economics in the three types of Suya study. Based on the findings of the study it was recommended that all Suya products should be registered with National Agency for Food and Drug Administrative
Control (NAFDAC) for quality programme to ensure good sanitation of the meat products.

Keywords: Suya, marketing, Maiduguri, Borno State