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Profitability of Beef Value Chain Marketing in Delta State, Nigeria

The study determined the profitability of beef value chain marketing in Delta State. A two-stage sampling technique was used for the study. The first stage was a purposive selection of four major towns: Asaba in Oshimili North, Warri in Warri South, Agbor in Ika South and Ughelli in Ughelli North Local Government Area of Delta State. These towns were sellected for the study because of the high marketing activity of beef in these places. The second stage involved a random selection of 320 beef marketers in the open market, abattoirs, meat shops and hotels across the four Local Government Areas. The distribution of the sample was based on proportion to size using Taro Yamane formula. The result of the study showed that beef marketing comprise of marketers who are married and advanced in age, their mean age were 46.6 years for the abattoirs; 47.5 years for the open market; 46.7 years for the meat shops and 51.9 years for the hotels. The average years of experience for the abattoirs, open markets, meat shops and hotels were 10.5; 12.7; 13.9 and 13.8 years respectively. The result of the study also showed that the distance that the marketers convey their beef to the market ranges from 6km to 15km. Majority of the marketers cover a long distance to convey their beef to the market. The implication of this is that the marketers will have to pay higher cost of transportation in conveying their beef to the market and this will have effect on their sales gross margin. The findings showed that the highest cost was the cost of beef and transportation: the cost of beef and transportation in each of the four different beef market value chains; abattoirs, open markets, meat shops and hotels were ₦255,000, ₦247,000, ₦253,200, ₦264,150; and ₦5479.2, ₦4305.8, ₦4123.4, and ₦4220.6respectively. The average total revenue for each of abattoir, open market, meat shop and hotel were ₦379,650, ₦384,450, ₦436,650 and ₦459,210 respectively. From the gross marigin analysis the largest share of gross margins was earned by abattoir operators who generated an average gross margin of ₦176 041.5 (39.7%) followed by the hotels, ₦150, 149.1 (35.3%), then the meat shops ₦127, 620.6 (32.5%) and finally the open markets ₦111,365.9 (30.1%). Therefore, beef value chain marketing in Delta State is a profitable enterprise. The efficiency of beef marketing under the four different marketing value chains was found to be highest for the hotels (1.56), followed by meat shops (1.35), abattoirs (1.24) and then open markets (1.20). Based on the findings of the study if efforts are made by the marketers in marketing quality beef the marketers will gain higher and more reliable returns and resources just as the customers will gain more satisfaction on the value of money spent on the purchase of beef.

Beef Marketing Chain, Value Cost, Abattoir, Open Market, Revenue, Meat Shop, Hotel

APA Style

Tibi Kentus Nwachukwu, Oyem Amos. (2023). Profitability of Beef Value Chain Marketing in Delta State, Nigeria. Science Journal of Business and Management, 11(3), 126-132. https://doi.org/10.11648/j.sjbm.20231103.14

ACS Style

Tibi Kentus Nwachukwu; Oyem Amos. Profitability of Beef Value Chain Marketing in Delta State, Nigeria. Sci. J. Bus. Manag. 2023, 11(3), 126-132. doi: 10.11648/j.sjbm.20231103.14

AMA Style

Tibi Kentus Nwachukwu, Oyem Amos. Profitability of Beef Value Chain Marketing in Delta State, Nigeria. Sci J Bus Manag. 2023;11(3):126-132. doi: 10.11648/j.sjbm.20231103.14

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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