ABSTRACT
In the marketing of broiler chicken, the marketers are faced with factors that affects profits. This studies therefore focuses on the profitability of broiler marketers in Oredo Local Government Area of Edo State, Nigeria. To achieve this, the specific objectives were to describe the socio-economic characteristics of the respondent in the studied area, examine the gross margin, profit and marketing cost of broiler marketers based on variable and fixed inputs, and to examine the effect of marketing cost on profits of the marketers. A two stage sampling procedure was used to select a sample size of 82 broiler marketers. Data for this study were both primary and secondary sources. Data collected were analyzed using both descriptive and inferential statistical tools.
The result of the descriptive statistics showed that most of the marketers were female (68.29%) with a mean age of 41 years. it also shows that two-fifths of the marketers were married (63.41%). The household size for most of the marketers were 1-5 (85.37%), with a mean household size of 4. More than half of the marketers (57.32%) had secondary education as their highest educational level. The mean marketing experience was 8 year. 8049% of the marketing had a marketing experience of 1-10 years. 45.12% of the marketers purchased broiler chicken from the farmers and 54.88% purchased broiler chicken from wholesalers. The mean of the total revenue for the business was ₦2414. The mean of the gross margin was ₦1667.33. The mean profit incurred was ₦1545.69. The result also showed that the cost of feed was the highest cost incurred (₦1545.06), and the least cost incurred was cost of loading (₦0.83). The result of the inferential statistics showed that the cost of feed, cost of security, cost of tax, cost of ticket, cost of loading, cost of transportation, and cost of rent significantly affected the profit of the marketers. Their respective coefficients are -0.96, 4.84, -58.98, 5.79, 5.31, -16.8, and 6.79.
Broiler chicken marketing in Oredo Local Government Area is profitable as the marketers make ₦1575.29 per kg of bird, although it is affected mainly by cost of tax and cost of transportation.
