ABSTRACT

The study set out to analyse the poultry input market performance in Abia state, Nigeria. The specific objectives were to, describe the socio- economic characteristics ofthe operators in Abia state; examine the structure, conduct and performance of poultry input markets in the study area; estimate the factors that determine (performance) profits in the enterprise; examine the constraints in the operations in the study area; and make recommendations based on the findings.The study employed a-two stage sampling technique in the selection of the location and respondents. In the first stage, two local government areas were chosen from the three agricultural zones. The second stage involved a random selection of 10 traders each from six local government areas who deal on poultry inputs bringing a total of 60 traders. The data for the study was through primary source. The primary source was obtained through the aid of questionnaire which was administered to the respondents. Objectives (i), part of (ii) and (iv) was realized through descriptive statistics such as frequencies, means and percentages; part of objective (ii) was achieved through market, price setting and marketing margin; while profit stochastic function was employed in objective (iii). From the results, it is seen that among the respondents sampled, 86.67 percent ofthe respondents were males, while 13.33 percent were females. The result also 66.67 percent of the respondents were married, while the remaining 33.333 percent were single. Among the respondents, those between the ages of 30 - 49 years were 66.33 percent; those between 50 - 59 years were 16.67 percent, while those between the ages of 20- 29 years were 15 percent. The respondents whose household size was between 4 -7 persons accounted for 63.33 percent, while those who less than 4 persons in their household were about 36.67 percent. Majority ofthe respondents as shown in table 4.1 above indicated that 53.33 percent of the respondents had their OND or NCE certificate, implying that they had spent 14-15 years in school. ■ This was closely followed by those who had obtained their West African Schools Certificate which accounted for 38.33 percent and by implication had spent 11 to 12 years in school. Those who had acquired either the Higher National Diploma or Bachelor of Science were 5 percent and those with the First School Leaving Certificate were 3.30 percent. Among the respondents, those who have spent between 4 to 7 years and between 0-3 years in the enterprise were ofthe majority, accounting 23.33 percent. Those who had spent between 8-11 years in the business were 2 percent; those with 12 years and above experience were 5 percent. Those whose monthly income ranged from N100,000.00 and above ranked the highest with 58.33 percent. This was closely followed by those who earned between N60,000.00 and N69,000.00 monthly. Those whose monthly income was between N20,000.00- N59,000.00 was 16.67 percent, while 6.67 percent earned less than N20,000.00 monthly. In this study, barrieis to entry and mode of entry were used to determine the market structure of poultry input market in the study area. In terms of mode of entry, all therespondents (100 percent) admitted the entry was free. Similarly, barriers to entry into the market using toll payments, payment of business premises and union permission as barrier indicated also that for all the respondents, payment for the afore mentioned was required before entry into market could be allowed. Cost of input ranked first in setting prices. This was followed by buyer’s demand as the major approach adopted by the input dealers in setting prices. Supply strength and haggling power of the buyers were the third and fourth ways of setting prices. The enterprise is a profitable one, based on the outcome ofthe marketing margin. Maximum likelihood estimates ofthe determinants of performance in the poultry input market in Abia State, Nigeria, showed that age of the respondents, educational attainment, gender, income, experience and volume of sales were significant at various probability levels and therefore determinants of performance as measured by profits by the operators of the enterprise in the study area. Among the constraints, high transport cost constituted the highest constraint to the operations of the traders. As much as 96.67 percent of the respondents indicated that they encounter high transportation costs in the course of transacting their businesses and therefore ranked first. The second was scarcity of inputs, as 78.33 of the respondents indicated so. The third constraint in order ofranking was low patronage, which recorded 75.0 percent responses, while attitude oflaw enforcement agencies and lack of credit facilities ranked fourth and fifth respectively. All constraints some of which are, high transportation cost, scarcity of inputs, incessant harassment by law enforcement officers should be reduced. A revolving loan should be extended to the traders which will help reduce the problem of credits. Government should encourage poultry production which will in turn bring about increased patronage by the farmers, among other things.