ABSTRACT

This study assessed spatial price and operational efficiency in the poultry feed market in Abia State, Nigeria. The specific objectives were to examine the socioeconomic characteristics of poultry feed sellers, evaluate spatial price of poultry feed across the zones in the state, evaluate the operational efficiency of poultry feed sellers, ascertain the socio-economic factors that influence operational efficiency, describe the structure of poultry feed market and identify the problems that affect spatial price and operational efficiency of poultry feed market in Abia State. Primary data used in the study were obtained using wellstructured questionnaire administered to 90 poultry feed sellers who were randomly selected. Data collected were analyzed using descriptive statistical tools such as frequency tables, means, percentages and operational efficiency model, spearman's rank-order correlation analysis, and Herfindahl index. Results indicate that the mean age of respondents was 40.9 years implying that majority of the respondents are of middle age and are still active and vibrant. Majority of the respondents were males and about 73% of the respondents were married. In terms of education 96.7% of the respondents had one form of education or the other. The mean household size was 5 persons per household, with mean years of marketing experience of 16.7. The mean value of business was N258,077.80. The result on spatial price analysis shows that prices of poultry feed are the same in the zones. Result further shows that poultry feed sellers in the state are not operationally efficient, given the fact that the mean operational efficiency of poultry feed sellers was 40%. The result of the regression analysis shows that three variables are significant in influencing operational efficiency of the sellers of poultry feed, as age was positive and significant at 1 percent, marital status was positive and significant at 5 percent, and household size was positive and significant at 1 percent. The assessment of market structure using Herfindahl index suggest that poultry feed market in the state is perfectly competitive this is evident from Herfindahl index of 0.025. The findings further show that poultry feed marketers were confronted with problems such as high cost of feed, high cost of transportation, and high level of taxation, poor infrastructure and insufficient capital. The study recommended among others that poultry feed sellers should adopt operations that will result in reduced marketing cost as to enhance operational efficiency.