Analysis of Beef Marketing in Lafia Metropolis of Nasarawa State, Nigeria

Purpose: The study analysed the marketing of beef in Lafia metropolis. Specifically, the study described the socio-economic characteristics of beef marketers in the area, analysed the market structure for beef, assessed the marketing cost and profit, and estimated the operational efficiency of beef marketing and its determinants. It also identified the constraints faced by beef marketers in the area. Methodology: Data used for the study were generated through administration of well structured questionnaire to 60 respondents made up of 20 wholesalers and 40 retailers randomly selected from 4 major beef markets in the study area. Data were analysed using descriptive statistics, budgeting, concentration ratio, Gini coefficient, operational efficiency and regression technique. Results showed variation in marketing cost, marketing margin and marketing profit for both wholesale and retail beef markets. Results also indicated that wholesale beef market operated at a monopoly level while the retail beef market showed perfect competition. The Gini coefficient for wholesalers of 0.47, which is above 0.35 indicates high level of market concentration and high inequality in wholesale beef market, while retail market with a value of 0.29 shows low level of market concentration and low level of inequality. But wholesalers were also more operationally efficient than retailers. Only transportation cost had significant effects on efficiency at both wholesale and retail market levels, while record keep, level of education and packaging cost had significant effect on operational efficiency in retail market. Results: Results also indicated that marketers both wholesalers and retailers complained of inadequate capital as a very serious constraint; transportation cost and inadequate storage facilities, as serious constraints; risk of spoilage, low patronage as not serious constraints, and market charges as not very serious constraints


Background of the study
Livestock are a group of domesticated animals raised by man for his consumption and to satisfy some needs and derive some economic benefits, which include, livestock products, traction, savings, prestige, etc. Livestock products comprise meat, milk, hide, wool, chicken, eggs, etc. Beef is the flesh or skeletal meat derived from cattle.It is an important source of nutrients, such as high quality protein, vitamins B 12 , iron, Niacin, iron, calcium, magnesium, phosphorus, potassium, zinc (USDA, 2018).It's the third most consumed animal product in the world, after pork and poultry (Raloff, 2003).Despite this nutritional value, moderation is advocated on health grounds while consumption is even forbidden in some places on cultural or religious grounds.Though grading is being introduced in countries such as US and EU, generally the quality of beef could be said to be a function of age and sex of the animal, feeding conditions, breed type and body parts, while tenderness, fat and bone contents, flavor, colour are quality characteristics that are most valued by consumers.In the developing countries, beef is the most widely consumed animal product.This is reflected in its all time high demand and high market price, an indication of demandsupply gap in the market.Beef consumption increases as income increases, with access almost limited to rich and middle income class groups in society, making it a luxury competing with other red meats.Taking beef at a gathering is highly regarded as a honour and privilege among the Yorubas in SW Nigeria, though Nigeria is classified among countries with low beef consumption in the world and supply of animal protein per capita per day is put at 13.26g (Okuneye, 2002) far below recommended minimum level of 35 g (Oyenuga, 1987).In Nigeria beef is consumed by all social groups irrespective of tribe, gender, culture, religion, region, income, etc.This makes it an easy source of protein whose access is thought could be increased thru an efficient distribution system.Also, escalating prices of animal products as a result of high costs of feeds has put animal products beyond the reach of average Nigerian (Afolabi, 2002).Ikpi (1990) stated that over the period 1970 -1989, beef contributed more than 70 percent of the total meat supply in Nigeria, sowing its importance at improving people's living standard.Marketing is the process of moving a commodity from its point of production till it reaches the consumer's table and a marketing system is expected to ensure sustainable production while providing consumer with maximum satisfaction.Olukosi et al. (2007) viewed marketing as a bridge between production and consumption through the creation of form, place, time and possession utilities.Poor marketing system as a result of poor storage and transport infrastructure are limiting the total quantity of food products reaching the consumer's table (Okuneye, 2002).The National Livestock Project Division (NLPD, 1992) had stated that for some time the supply of cattle products has been declining while demand is fast increasing.The shortfall in supply is often as a result of high cost of cattle marketing; including transportation, market infrastructure and poor market information.Inefficient system could also be as a result of the presence of too many middlemen in the marketing of animal products, leading to high marketing costs and margins (Ekunwe et al., 2008).
In Nigeria markets are shrouded in secrecy.Olukosi et al. (2007) reported that the exact number of agents in the markets is difficult to determine and various charges and commissions are thereby imposed on cattle buyers.While butchers and merchants are registered officially, brokers are not, making them to operate unlicensed.In order to close the protein gap beef cattle needs be slaughtered on daily basis and distributed using an efficient marketing system, which also means sustainability in production while keeping constant consumer's demand and satisfaction.

Statement of the Research Problem
The current per capita animal protein intake in Nigeria is estimated at 62% below recommended level.The challenge before the country is how to close this deficit especially from beef cattle consumption.Several strategies are used to achieve this, including: expanding production and reduce spoilage so as to improve beef supply (NLPD, 2002), improving the system of distribution and marketing, improving product characteristics, or stimulating consumer's demand and preferences.The marketing system strategy involves improving the efficiency of the distribution system, that is the institutions and channels involved, the nature of the market structure, the pricing system, the market infrastructure, and the product presentation.Also not much research has been done to improve beef consumption in the area using marketing system.This study, thus intends to analyse beef distribution system, find out how efficiently is it performed; the distribution channels used; the nature of the competition and the problems encountered by the marketing firms.Specifically, the study: (i) describes the socio-economic characteristic of beef marketers in the area; (ii) analyses the market structure for beef; (iii) estimates marketing cost, marketing margin and marketing profit for beef in the area; (iv) assesses the determinants of operational efficiency in beef marketing; and (v) identifies the constraints in beef marketing in the study area.

Methodology
The study area The area of the study is Lafia Metropolis of Nasarawa State.The study was carried out at the main abattoir of the city as well as major markets between the months of April and May 2015.Lafia metropolis shares boundaries with Nasarawa Eggon in the North, Obi Local Government Area in the South, Doma Local Government Area in the west and Quanpaan Local Government Area of plateau in the west.Lafia is located between latitude 8 0 .33"N", longitude 8 0 .32 "E" and has altitude of 181.53 meters with annual rainfall of about 150m, with the highest rainfall in the months of August and September.The rainy season usually lasts from late April to late October and the dry season spanning from November to March.The study area has an average temperature of 32 0 c.The area consists of the following tribes: Eggon, Gwandara, Alago, Migili; Hausa, Fulani, Kambari and Rendre.The major occupation of the inhabitants of the area is predominantly farming which involves crop production and rearing of animals.

Sampling and sample size
A two-stage random sampling procedure was used to select the respondents.The first stage involved the random selection of four beef markets in the Metropolis.The second stage involves the random selection of 15 beef marketers from each market making a total of sixty ( 60) respondents for the study.

Methods of data collection
Data were collected from beef marketers with the aid of a well structured questionnaire and through interview schedule.Data collected include the respondents socio-economic characteristics, marketing channels, quantity of beef marketed, beef buying and selling price, transportation cost, etc.

Descriptive statistics
These comprise mean, standard error, frequency, total, etc.The market structure was analysed using concentration ratio and Gini coefficient analysis.The marketing cost, marketing margin and marketing profit were analysed using budgeting approach.The determinants of operational efficiency were assessed using regression analysis.

Marketing margin analysis
Marketing margin, marketing cost, marketing profit were estimated as follows.

Concentration ratio analysis
Two largest, four largest and 8 largest firms were used as follows.
Where, Q i =quantity of beef sold by i th marketer (in kg) ∑ i n Qi = Total quality of beef marketed by all marketers (kg) CR 2 ; CR 4 ; and CR 8 all are concentration ratios of 2 largest, 4 largest and 8 largest firms.

Gini coefficient (GC) analysis
This was captured using the following formula.

Determinants of operational efficiency
The model is specified as follows. Specifically, Where

Socio-Economic Characteristics of the Respondents Gender of respondents
The result of the study in table 1 shows that all beef marketers were male.That is there is no female among the beef marketers.This showed that beef marketing is only a male business in the area.This may be as a result of cultural barriers.

Age distribution of respondents
The result of age distribution of respondents as presented in Table1 shows that most of the wholesalers (40%) are between ages 31-35, making the 40% of the respondents while retailers are of the between 25-30 making 32.5% of the respondents.This means that most of the beef marketers in the study area are still in their economically active age group.The average age was 36 for wholesaler and 35 for retailers.

Marital status of respondents
Table 1 shows that 100% of wholesalers are married against 75% only for retailers.While 22.5% and 2.5% are singles and divorcees respectively.The result means that most of beef marketers in the study area derived enough income from the business to support their families' needs.

Educational level of respondents
The result in the table 1 showed that 60% of the wholesalers undergo non-formal education, 35% went to primary schools.For the retailers 47% undergo non-formal education, 25% went to primary school, 12.5% went to secondary school, 2.5% had HND/University certificate.This result shows that most beef marketers in the area do not have formal education especially the wholesaler.

Marketing experience of respondents
The study revealed that 10% of the wholesalers have been in business between 1-5 years; 35% between 6-10 years, 25% between 11-15 years, 5% between 16-20 and 25% between 21 years and above.On the other hand 27.5% of the retailers have being in business between 6-10 years, 17.5% between from 21years and above.The average experience of wholesalers was 13 years while that of retailers was 11.This implies that the wholesalers had more experience than the retailers.

Records keeping by respondents
The study showed that 45% of the wholesalers keep record and 55% do not keep records.
On the other hand 75% of the retailers keep record while 25% did not.This implies that the retailers keep record of marketing beef more than the wholesalers.

Concentration ratio
From result presented in table 2, the two-firm concentration ratio for wholesalers of beef in the area showed 17.97% while that of retailers showed 8.9%, for four firm concentration ratio the wholesalers showed 39.24% while the retails showed 16.64%.The eight firm concentration ratios for wholesalers had 48.81% and retails 30.19%.The two, four and eight firm concentration ratio for wholesale also indicated a perfectly competitive market (when getting towards zero).The eight firm concentration ratio for wholesale was 48.8% which was above 35% and moving towards monopoly (single seller with considerable control over supply and price).

Gini Coefficient
From the result presented in the study area as 0.4678 and 0.2985 for wholesale and retails respectively indicating or implying a high level of inequality in sales of wholesalers and hence high level of concentration This is a reflection of inefficiency in the market structure for wholesale beef while the retailer showed low level of inequality in sales and low concentration in the study area as shown in table 3.

Analysis of Marketing cost, Marketing Margin and Marketing Profit
The analysis showed that retailers incurred higher marketing cost N170.67/kgas against N 97.17/kg for wholesalers.Wholesalers realized margin of N 228.00/kg(40.35%), while retailers had N 337.55/kg(59.65%).These results agreed with the findings of Erhabor et al. (2008) who reported high margin for retail beef marketing (4.89%) as against (1.82%) for wholesale market.
The marketing profit per kilo of beef retails (N 167.88) was higher than wholesaler beef market with N130.83 profit.The mean daily sales of 199.45 kg for wholesaler and 96.825 kg for retailer were recorded respectively.The marketers could earn decent income in present days, Nigeria, where monthly minimum wage is still below N 20,000.However, this can only be realized if the market for beef in Lafia metropolis is stable enough to ensure regular sales.The marketing cost incurred by wholesalers and retailers was highest in the labour cost component, but highest in retail market.This may be as a result of employment of labour which was highest in retail market.6, shows that 75 percent of wholesalers had efficiency between 71 -80 percent, against 65 percent of retailers who had it between 50-70 percent.The mean OE was 94 percent and 79 percent for wholesalers and retailers, respectively.This indicates higher operational efficiency for beef in wholesale than retail.The implication is that for wholesalers having 6% inefficiency and retailers 21%, there is need to increase their capacity to deliver beef to consumers in the most cost effective way.

Conclusion and Recommendation
Beef is mainly marketed in Lafia metropolis by wholesalers and retailers.Analysis showed difference in marketing cost, marketing margin and marketing profit between wholesalers and retailers.The marketing cost component incurred by the marketers showed that both the wholesalers and retailers paid highest cost on labour.This is an indication of high employment of labour in retail and wholesale.Analyses show a market structure is of monopoly type in wholesale market and perfect completion in retail market.The mean operational efficiency of 94.70% and 79.08% for wholesalers and retailers respectively, means wholesaler delivers beef to retailer in most cost-effective manner while still ensuring the high quality of its product and service delivery.Constraints faced by wholesalers are identified as inadequate capital, inadequate storage facilities, risk of spoilage and those encountered by retailers are: inadequate capital, transportation cost, and inadequate storage facilities.Based on the findings, the following recommendations were suggested: i.
Marketers should be encouraged to forming co-operative for the purpose of accessing loans or credits.ii.
Government and Community based organization (CBO) as well as other nongovernment organizations (NGOs) should provide mobile cold-rooms for easy transportation of beef.This would reduce the constraint of high perishability of beef and result in quality enhancement.iii.
Efforts should be geared towards making provision for good storage facilities to reduce spoilage and increase the shelf-life of beef, to be supported with steady power supply. iv.
Government should ease transportation and storage facilities as to facilitate quality of the product which attracts buyer.v.
Government should site more abattoirs close to major beef market to reduce transportation cost and consumer price, which will also provide quicker and more efficient service at reasonable cost and increase access to quality beef.There is also the need to improve hygiene conditions most especially at open beef retail stores.
GC = 1 -∑XYWhere, GC = Gini Coefficient X= percentage of beef marketers by range Y= cumulative percentage quantity of beef soldOperational Efficiency (OE) analysisThe Operational Efficiency (OE) of beef marketer was assessed as follows.OE i

Table1: Socio-economic characteristics of beef marketing in Lafia
* Multi responses were recorded