ABSTRACT
The study investigated the economics of fish marketing in Akwa Ibom State, Nigeria using primary data. Purposive and multistage random sampling technique was used to collect the data from 105 respondents using well-structured and pre-tested questionnaire. These data were analysed using descriptive statistics, concentration ratio, price spread, net profit margins, marketing margins analyses and multinomial logit (MNL) models. Tests of significant differences and effects were carried out using analysis of variance (ANOVA) and t-test techniques. Research results showed that average age for the fish marketers were 38years for producers, 42years for wholesalers and 46years for retailers, and also that majority of them were married. The results further showed that majority of the fish producers and retailers had West African Senior School Certificate while most wholesalers had First School Leaving Certificate. Also, the all marketers had average household size of 5 members with 18years marketing experience for the producers, and 15years for the wholesalers and retailers, respectively. Furthermore, the study found that the marketers made use of referrals, price discount and home delivery to attract customers. The results showed that the market was under weak oligopoly at concentration ratio of 47%. This implies that the activities of the largest four fish marketers affected the price and demand for fish in the market. Further results showed that fish marketing was profitable with channel 2 having the highest net margin of N141,095 per annum per processing firm compared to channel 1 (N127,850) and channel 3 (N137,030) while channel 1 had the highest marketing efficiency of 342% relative to channels 2 and 3 with marketing efficiencies of 144% and 97%, respectively. The results indicated that these differences in marketing efficiency among the channels were significant at P<0.01. This implied that the longer the chain of distribution, the higher the marketing cost and hence, the lower the marketing efficiency. Furthermore, the study found that smoke-drying was the predominant method of processing fish at frequencies of 64% for the producers, 90% for the wholesalers and 92% for the retailers. Use of hangovers was the dominant method of storing fish at frequencies of 40% for the producers, 76% for the wholesalers and 83% for the retailers. Also, motor-cycle was the dominant method of transportation of fish for the producers and wholesalers at frequencies of 73% and 61%, respectively, while use of bus/taxi was dominant for the retailers at frequency of 76%. Further results showed that there were challenges facing fish marketing at an average of 2.74 on a 4-Point Likert rating scale. Lack of capital, seasonality of fish business, lack of government assistance, produce deterioration, lack of storage facilities, poor extension services and debt were the factors indicted for challenging fish marketing. More so, the results showed that socioeconomic characteristics accounted for the vertical differentiation of fish marketing into channels 1, 2 and 3 by 68%, 87% and 92%, respectively. Marital status, household size, value of fish and membership of cooperative unions were the factors that significantly drove vertical differentiation of fish marketing positively at P<0.05 while the effects of age and sex were significant and negative at P<0.05. Firewood splitting, fish transportation, loading/off-loading of fish, fish packaging, fish processing and fish smoking were the activities that both males and females participated in. This implied that the participation of both males and females will enhance the marketing of fish. The study recommended policies that will enhance that profitability and efficiency of fish marketing.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Agriculture is the major economic activity of developing economies. In Nigeria, agriculture provides food for the increasing population; supplies adequate raw materials to growing industrial sector; is a major source of employment; generates foreign exchange earnings; and provides market for the products of the industrial sector (Okumadewa, 1997; World Bank, 1998; Winters, Janvry, Sadoulet and Stamoulis, 1998; Food and Agriculture Organization, FAO (2006) as cited in Eze, Lemchi, Ugochukwu, Eze, Awulonu and Okon 2010).
Fish is a very important agricultural product in the country as it occupies a prime place in the economy of the country. The term fish is a diverse group of animal that live and breathe in water by means of gill. Fish is one of the most diverse groups of animals known to man with over two thousand five hundred species. There are more species of fish than all other vertebrate (Eyo, 1992). The fishery sector is estimated to contribute about 3.5% to Nigeria’s Gross Domestic Product (GDP), and also provides direct and indirect employment to over six million people (Kwara State Government, 2010). The employment opportunities come from different fishing activities such as production, processing, preservation and transportation (Ali, Gaya and Jampada, 2008). The Central Bank of Nigeria, CBN (2005) report shows that the contribution of the fishery sector to the GDP of Nigeria rose from N76.76 billion in 2001 to N162.61 billion in 2005.
Fish is a very important agricultural product in Nigeria, and is largely consumed in the country especially due to its rich nutritional and medicinal values. More so, the large coastal area and continental shelf available in the country makes diverse varieties available in different areas at affordable prices. Despite these rich coastal and continental resource base of the country, demand for fish far exceeds production, resulting in the importation of over 800,000 metric tonnes of fish annually (FBS, 2007). This trend may not change in the nearby future considering the rising population of the country and the increasing distance between fish producers and consumers. This therefore calls for efficiency in fish marketing. Furthermore, fish is the most important animal protein food available in the tropics, and this could account for its large consumption in the country. In Nigeria, fish constitutes 40% of protein intake (Eyo,1992: Federal Department of Fishery, FDF, 2000), while, according to Adekoya and Miller (2004), fish and fish products contribute more than 60% of total protein intake in adults especially in rural areas. Amiengheme (2005) asserts that nutrient from fish is superior to all terrestrial meats such as beef, mutton, pork and chicken being a rich source of high quality animal protein and also contains highly digestible energy. More so, it is a good source of sulphur and essential amino acids such as lysine, leucine, valine and arginie. Fish is a good source of thiamine and polyunsaturated fatty acids, fat soluble vitamins such as vitamins A, D E and K, and water soluble vitamins for example, B complex, and minerals, such as, calcium, phosphorous, iron, iodine and selenium. According to Ovie and Raji (2006), Fish contains omega 111 fatty acids that are known to reduce cardiovascular diseases, hypertension and arteriosclerosis, thus becoming a preferred source of protein for those nearing 50years and above. These fatty acids are also known to enhance good brain cell development in developing foetus,(thus vital diet for pregnant women) and intelligent quotient (IQ) in developing children (FDF,2005). Hence it is evident that fish and fisheries are crucial to the economy and health of the nation.
The geography and biodiversity of Nigeria supports fishing activities. Nigerian coastal fishery sector is characterized by a rich resource base with a water area of 140,000km2 and about 42,000km2 continental shelf areas, adjacent to the country’s 853km coastline (FAO, 2007). The huge Niger Delta inland waters associated with River Niger and River Benue, their tributaries and flood plains, natural lakes and wetlands, reservoirs and purpose-built ponds, constitute the total water area in the country. Furthermore, one quarter of Nigerian States are located at the coastal zone, including Akwa Ibom. The other states include Lagos, Ogun, Ondo, Delta, Edo, Bayelsa, Rivers and Cross River state ( Bako, Atala, and Kudi, 2008).
According to Federal Bureau of Statistics, FBS (2007), annual fish production in the country in 2006 was about 700,000 metric tonnes, mainly through artisanal fishery, less than 1.5 million metric tonnes annual demand of the country. Artisanal fishery is a small scale fishery activity that involves the use of relatively little capital, dugout canoes and other simple fishing facilities such as gears, nets, hooks and traps around streams, rivers and within five nautical miles in the seas. Some of the fish species found in Nigerian waters include sole, sharks, rays, catfish, bonga fish, mud fish and tilapia. In Nigeria, agriculture has failed to meet the food needs of the growing population. One of the possible reasons for this failure, as asserted by Ayinde, Adewumi and Ojehomon (2009), is the malfunctioning of marketing chain of major food leading to high rate of spoilage, constant food shortage, rising farm products prices and huge importation costs. The role of marketing cannot be over emphasized as production centres are fragmented and mostly in small scale. (FAO, 2009).
The marketing of fish has steadily changed due to urbanization. Thus, as the process of urbanization progresses in Nigeria, an increasing share of national fish consumption takes place at locations other than where fish is produced. Before increasing urbanization, fish produced were locally and domestically consumed. With increasing urbanisation and development, which has further increased the distance between fish producers and consumers, fish marketing has become very important. Fish marketing involves all activities undertaken in conveying fish from producer to consumers. It includes processing, storage, preservation, transportation, wholesaling and retailing. The process of fish marketing is a very delicate one, if the quality and nutrition of fish is to be maintained to the highest possible value.
Efficiency in fish marketing system is essential for the growth and development of the fishery sector. Marketing efficiency involved the movement of products from the producers to the consumers at the lowest cost consistent with the provision of the services consumers’ desire. It involves technical efficiency and economic efficiency. While technical efficiency measures the effectiveness or competence with which the physical aspects of marketing (such as storing, transportation and other activities meant to reduce wastes and prevent deterioration) are performed, economic efficiency, measures the realization of maximum possible output in money terms with a given resource input, or a given level of output from the minimum possible resource input (Adegeye and Dittoh, 1985).
             The use of wholesalers and retailers (intermediaries) between producers and consumers improves marketing efficiency tremendously and, also, reduces distribution costs to all market participants (Coughlan, Anderson, Stern and El-Ansary, 2001). The marketing system must develop well to provide necessary services as producers sell in markets distant from where consumers buy their fish. According to Enete (2008), the efficiency of marketing system gets better as the number of intermediaries increases and vertically differentiate with specialized functions like wholesale and retail. This is in line with the earlier assertion of Adegeye and Dittoh (1985) that the overall objective of marketing efficiency is to provide goods to consumers in the required form at the required time and place with the lowest possible marketing costs consistent with the interests of the producers.
