Structure, Conduct and Performance of Pig Marketing in Umuahia North Local Government Area of Abia State, Nigeria

Abstract

The study examined the structure, conduct and performance of pig marketing in Abia State, Nigeria. The specific objectives were to determine the socioeconomic characteristics of the respondents, ascertain the market structure, conduct and market performance pig marketing, and determine the factors influencing marketing margins and efficiency among respondents in the study area. A purposive sampling technique was used in selecting three major markets involved in pig marketing in the study area (Umuahia North Local Government Area of Abia State). Sixty pig entrepreneurs involved in pig marketing were randomly selected for the study. Primary data were collected using a well-structured questionnaire. Data were analyzed using descriptive statistical tools such as frequency distributions, means, percentages, Gini coefficient, and regression models.  The result showed that most of the respondents studied were male, married, educated, young, and well-experienced in pig marketing. More so, there was price discrimination within the markets and a high level of inefficiency in the market structure of the marketers, with a Gini coefficient of 0.539. This implies a high concentration of pig marketing in the hands of few marketers. In addition, 93% of the pig marketers indicated that their pricing behaviour was determined by forces of demand and supply, while 100% of the marketers indicated price bargaining and about 87% indicated marketing cost and margin. The result of the marketers’ conduct was evidence of buyers’ ability to bargain well in price determination and an incidence of price discrimination. The pig marketers made a marketing margin of N 500 per kg and a profit of N 276.02. The return on investment was 0.26 meaning that for every one naira invested 0.26 kobo is returned indicating that pig marketing is lucrative and worth undertaking in the study area. Cost of transportation, the amount spent on labour, and quantity of pigs sold were significant factors influencing marketing margin while age, years of experience, access to credit, and income were significant factors influencing marketing efficiency. The study therefore recommended that males, married, educated, and young with the necessary experience should be financially supported to go into pig marketing. Government and other stakeholders in the pig market should implement necessary policies that will encourage the right pricing behaviour among entrepreneurs involved in pig marketing.