Home / Agric Extension / ANALYSIS OF POULTRY MARKET CHAIN (A CASE STUDY)

ANALYSIS OF POULTRY MARKET CHAIN (A CASE STUDY)

 

Table Of Contents


<p>&nbsp;                  <b>TABLE OF CONTENTS&nbsp;</b></p><p>ACRONYMS AND ABBREVIATIONS--------------------------------------------------------------------------------IV&nbsp;</p><p>BIBLIOGRAPHICAL SKETCH -----------------------------------------------------------------------------------------&nbsp; VI&nbsp;</p><p>ACKNOWLEDGMENTS --------------------------------------------------------------------------------------------------- VII&nbsp;</p><p>LIST OF TABLES -------------------------------------------------------------------------------------------------------------&nbsp;&nbsp; XII&nbsp;</p><p>LIST OF APPENDICES ------------------------------------------------------------------------------------------------------- XIV&nbsp;</p><p>ABSTRACT ----------------------------------------------------------------------------------------------------------------------- XVI&nbsp;</p><p>1. INTRODUCTION -------------------------------------------------------------------------------------------------------------- 1&nbsp;</p><p>1.1. Background ------------------------------------------------------------------------------------------------------------------- 1&nbsp;</p><p>1.2. Statement of the Problem ------------------------------------------------------------------------------------------------- 4&nbsp;</p><p>1.3. Objective of the Study ------------------------------------------------------------------------------------------------------ 6&nbsp;</p><p>1.3. Significance of the Study -------------------------------------------------------------------------------------------------- 7&nbsp;</p><p>1.5. Scope and Limitation of the Study -------------------------------------------------------------------------------------- 7&nbsp;</p><p><b>

Chapter TWO

</b><br></p><p>2. LITERATURE REVIEW ------------------------------------------------------------------------------------------------------- 8&nbsp;</p><p>2.1. Basic Concepts ---------------------------------------------------------------------------------------------------------------- 8</p><p>&nbsp;2.1.1. Market and marketing ----------------------------------------------------------------------------------------------------- 8</p><p>&nbsp;2.1.2. Marketing systems --------------------------------------------------------------------------------------------------------- 9</p><p>&nbsp;2.1.3. Marketing efficiency ------------------------------------------------------------------------------------------------------- 10</p><p>&nbsp;2.1.4. Marketing channel ---------------------------------------------------------------------------------------------------------- 11</p><p>&nbsp;2.1.5. Market chain and business support services ------------------------------------------------------------------------ 12&nbsp;</p><p>2.2. Approaches Used to the Study of Agricultural Marketing ------------------------------------------------------------ 13</p><p>&nbsp;2.2.1. Functional approach -------------------------------------------------------------------------------------------------------- 13</p><p>&nbsp;2.2.2. Institutional approach ------------------------------------------------------------------------------------------------------ 13</p><p>&nbsp;2.2.3. Commodity approach ------------------------------------------------------------------------------------------------------ 13&nbsp;</p><p>2.3. Methods of Evaluating Marketing System -------------------------------------------------------------------------------- 14</p><p>&nbsp;2.3.1. The Structure, Conduct and Performance (SCP) Model ---------------------------------------------------------- 15</p><p>&nbsp;2.3.1.1. Market Structure ----------------------------------------------------------------------------------------------------------- 15&nbsp;</p><p>2.3.1.1.1. Market Concentration Ratio (measure) -------------------------------------------------------------------------- 16&nbsp;</p><p>&nbsp;2.3.1.1.2. Hirschman Herfindahl Index (HHI) -------------------------------------------------------------------------------- 17&nbsp;</p><p>2.3.1.1.3. Gini-Coefficient --------------------------------------------------------------------------------------------------------- 18&nbsp;</p><p>2.3.1.2. Market Conduct ---------------------------------------------------------------------------------------------------------- 19&nbsp;</p><p>2.3.1.3. Marketing performance ------------------------------------------------------------------------------------------------ 20&nbsp;</p><p>2.3.1.3.1. Marketing Costs and Margins -------------------------------------------------------------------------------------&nbsp;&nbsp; 21</p><p>&nbsp;2.4. Supply Response and Market Participation in Farm Households ------------------------------------------------ 22</p><p>&nbsp;2.5. Sample selection bias ------------------------------------------------------------------------------------------------------&nbsp;&nbsp; 23&nbsp;</p><p><b>

Chapter THREE

</b></p><p>3. METHODOLOGY --------------------------------------------------------------------------------------------------------------- 25&nbsp;</p><p>3.1. Description of the Study Area --------------------------------------------------------------------------------------------- 25&nbsp;</p><p>3.2. Sources of Data -------------------------------------------------------------------------------------------------------------- 29</p><p>&nbsp;3.3. Data Requirements --------------------------------------------------------------------------------------------------------- 29&nbsp;</p><p>3.4. Sample Size and Method of Sampling ---------------------------------------------------------------------------------- 30</p><p>&nbsp;3.5. Method of Data Collection ------------------------------------------------------------------------------------------------ 30</p><p>&nbsp;3.6. Methods of Data Analysis ------------------------------------------------------------------------------------------------ 31&nbsp;</p><p>3.6.1. Descriptive statistics ------------------------------------------------------------------------------------------------------- 31&nbsp;</p><p>3.6.1.1. Structure conduct and performance (S-C-P) model -------------------------------------------------------------- 31&nbsp;</p><p>3.6.1.1.1. Market structure --------------------------------------------------------------------------------------------------------- 32&nbsp;</p><p>3.6.1.1.2. Market conduct --------------------------------------------------------------------------------------------------------- 33&nbsp;</p><p>3.6.1.1.3. Market performance --------------------------------------------------------------------------------------------------- 33&nbsp;</p><p>3.6.2. Econometric analysis ------------------------------------------------------------------------------------------------------ 35&nbsp;</p><p>3.6.3. Hypothesis and variables definition ----------------------------------------------------------------------------------- 40&nbsp;</p><p>4. RESULTS AND DISCUSSION ---------------------------------------------------------------------------------------------- 45&nbsp;</p><p>4.1. Production and Consumption of Village Poultry in Ethiopia. Error! Bookmark not defined.---------------45</p><p>&nbsp;4.2. Results of Descriptive Analysis ----------------------------------------------------------------------------------------- 45</p><p>&nbsp;4.2.1. Socio-demographic characteristic of farmers ----------------------------------------------------------------------- 45</p><p>&nbsp;4.2.2. Sources and income level of farmers -------------------------------------------------------------------------------- 47&nbsp;</p><p>&nbsp;4.2.3. Flock size and breed composition of bird in the sample household ------------------------------------------ 48&nbsp;</p><p>4.3. General Characteristics of Village Poultry Production --------------------------------------------------------------- 50&nbsp;</p><p>4.3.1. Ownership and decision making role ----------------------------------------------------------------------------------- 50&nbsp;</p><p>4.3.2.Feeding structure ------------------------------------------------------------------------------------------------------------- 50&nbsp;</p><p>4.3.3. Diseases management and Housing ------------------------------------------------------------------------------------ 50&nbsp;</p><p>4.4. Productivity and Profitability of Village Poultry Keeping --------------------------------------------------------------- 51&nbsp;</p><p>4.4.1. Productivity of village poultry keeping ------------------------------------------------------------------------------------ 51</p><p>&nbsp;4.4.2. Cost structure and profitability of village poultry keeping --------------------------------------------------------- 53&nbsp;</p><p>4.5. Farmers’ Access to Business Support Services ------------------------------------------------------------------------- 55&nbsp;</p><p>4.5.1. Farmers access to credit ---------------------------------------------------------------------------------------------------- 55&nbsp;</p><p>4.5.2. Farmers access to extension service ----------------------------------------------------------------------------------- 58&nbsp;</p><p>4.5.3. Farmers access to input supply ----------------------------------------------------------------------------------------&nbsp;&nbsp; 61</p><p>&nbsp;4.5.4 Farmers access to market and market information ------------------------------------------------------------------ 67</p><p>&nbsp;4.6. Structure, Conduct and Performance of Poultry Marketing System ---------------------------------------------- 71&nbsp;</p><p>4.6.1. Structure of poultry marketing system ---------------------------------------------------------------------------------&nbsp; 71</p><p>&nbsp;4.6.1.1. Demographic characteristics of bird and egg traders ----------------------------------------------------------- 71</p><p>&nbsp;4.6.1.2. Traders’ distribution by resource ownership ---------------------------------------------------------------------- 73</p><p>&nbsp;4.6.1.3. Roles and linkage of actors in village poultry marketing chain --------------------------------------------- 80</p><p>&nbsp;4.6.1.4. Live bird and Egg marketing channels ------------------------------------------------------------------------------ 85</p><p>&nbsp;4.6.1.5. Traders concentration ratios -------------------------------------------------------------------------------------------- 88</p><p>&nbsp;4.6.1.6 .Condition of entry and exit to live bird and egg trading ---------------------------------------------------------- 89</p><p>&nbsp;4.6.2. Conduct of traders in village poultry marketing system ------------------------------------------------------------ 91</p><p>&nbsp;4.6.3. Performance of village poultry marketing system ---------------------------------------------------------------- 94</p><p>&nbsp;4.6.3.1. Marketing costs of traders --------------------------------------------------------------------------------------------- 94&nbsp;</p><p>4.6.3.2. Marketing margins in bird and egg marketing chain -------------------------------------------------------------- 96</p><p>&nbsp;4.6.3.3. Marketing profit of live bird and egg trading ----------------------------------------------------------------------- 97&nbsp;</p><p>4.7. Determinants of Market Participation Decision and Intensity of Supply ------------------------------------------- 98&nbsp;</p><p>4.8. Constraints and Opportunities of Village Poultry Keeping and Marketing ---------------------------------------105</p><p>&nbsp;4.8.1. Constraints and opportunities of village poultry keeping --------------------------------------------------------- 105&nbsp;</p><p>4.8.2. Constraints and opportunities of live bird and egg trading ------------------------------------------------------ 107&nbsp;</p><p><b>

Chapter FIVE

</b><br></p><p>5. CONCLUSIONS AND RECOMMENDATIONS ------------------------------------------------------------------------- 109&nbsp;</p><p>5.1. Conclusions ------------------------------------------------------------------------------------------------------------------ 109&nbsp;</p><p>5.2. Recommendations and policy implications --------------------------------------------------------------------------- 113&nbsp;</p><p>REFERENCES ------------------------------------------------------------------------------------------------------------------&nbsp; 116</p><p>&nbsp;APPENDICES ---------------------------------------------------------------------------------------------------------------------- 121</p>

Thesis Abstract

<p>&nbsp;                       <b>ABSTRACT</b></p><p>&nbsp;Nigeria is a country in dire need of a quick animal protein source to meet up with the demand of its ever increasing population. Development of poultry industry has been identified as one of the quickest means of bridging this deficiency gap. The development of this industry has, however, been hindered by many problems and the broiler enterprise has been found to be the worst affected. The biggest problem associated with broiler enterprise is the high cost of inputs used in the production process. This results in low profit to the producer and the high cost price to the consumer resulting in very low demand for the product. As such, determinants of costs and returns together with efficiency measures of financial success for the broiler enterprise are analysed in this study. A total of 40 poultry farms were visited out of which 19 farms that produced broilers were considered for the study. The low size of 19 broiler farms indicate that majority of poultry farms are concentrating on layer production, and this also had an implication on the analytical framework used to achieve the objectives of the study. Descriptive, quantitative statistics, and net farm income analysis were used in the analyses and the following major conclusions were made (a) the net farm income which is the central measure of overall financial success of a farm was found to be positive in most of the farms and increased with the scale of production; (b) the returns to factors of production (labour and management) are lower in small farms when compared to large farms. Return on capital for the various farms was not found to differ significantly but was seen to be related to efficiency of management. The average return on capital in the study area is about 45% which is higher than the current bank lending rate of 21% ; (c) the gross ratio which measures the ultimate solvency of farms was found to be about 0.60 for the broiler farms and does not differ significantly between small and large farms at lower level of production; (d) the operating ratio which shows the proportion of gross income that goes to pay for the operating costs is about 0.72, i.e. 72 percent, which is quite high. There is also no significant difference between known classes of farms which is due to the fact that all producers obtained inputs from a common market; (e) the fixed ratio which measures the proportion of gross income that goes to service fixed resources is under 5 percent in all the farms. This indicates the rudimentary stage of poultry industry with little fixed costs components. Based on these results, it can be concluded that broiler production, despite the current decline, is still a profitable venture. What is needed is to devise ways and means of improving the efficiency of the production system to enable the producer realise more income and profit from his investment to offset the current high inflationary trend being experienced in the country. <br></p>

Thesis Overview

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