19 research outputs found

    Fundamentals of Cattle Marketing in Southwest, Nigeria: Analyzing Market Intermediaries, Price Formation and Yield Performance

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    An understanding of how cattle markets work is a desideratum for sustainable commercialization of cattle production aimed at increasing accessibility to and affordability of cattle meat. This study examined the fundamentals of cattle marketing in Southwest, Nigeria using primary data collected from 120 respondents selected through multi-stage sampling technique. Data analytical tools included descriptive statistics, budgeting and price formation strategy models. Empirical results showed the market is dominated by males (87.5%), market intermediaries less than 50 years (64.0%) who had formal education (68.0%). The three most important intermediaries were dealers, retailers and brokers. Transportation accounted for 74.3% and 46.2% of Total Variable Cost incurred by dealers and retailers. Cattle marketing was profitable with gross margin per head of cattle sold being N 6548, N 4,655 and N 2,342.50, respectively, for dealers, retailers and brokers while profitability ratio was 1.09, 1.07 and 1.03, respectively. The factors considered important in cattle price discovery included body condition, payment mode and type of buyers while breed, seller category and colour were the least important. Constraints to cattle marketers included insufficient capital, poor roads and insecurity identified by 85.0%, 83.3% and 79.7% of the respondents, respectively. The study concluded that the cattle market is well organized and that cattle marketing is a fairly profitable venture and potential employment source. Strengthening marketing institutions through capacity building for stakeholders, rail system resuscitation and fixing of bad roads are recommended as steps necessary to enhance the commercialization and performance of cattle marketing

    RESPONSIVENESS OF SPATIAL PRICE VOLATILITY TO INCREASED GOVERNMENT PARTICIPATION IN MAIZE GRAIN AND MAIZE MEAL MARKETING IN ZAMBIA

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    The study analyzed the responsiveness of maize grain and maize meal spatial price volatilities to increased government participation in maize grain marketing in Zambia using descriptive statistics and vector auto-regression (VAR). This was achieved by comparing spatial price volatility means and spatial price means for the period under increased government participation with respective means for periods under limited government participation. Also, spatial price volatilities were regressed against own spatial price and cross price means, cross price spatial volatilities, seasonality and arbitrage level. Lastly, the extent of spatial volatility discovery in the two vertical markets (maize grain and maize meal) was discovered from VAR equations. Real monthly price data for January 2003 to May 2011 from 8 major markets were used in the study. Empirical results indicated increased government participation reduced spatial price volatilities for both commodities. The VAR model identified own spatial price mean reduction as the major determinant of spatial price volatility reduction for both commodities compared to other variables. Maize meal spatial price volatility was also determined by one month lagged maize grain spatial price mean. Spatial price volatility for each commodity was higher in months with low prices and lower in months with high prices. Reduced arbitrage exerted more reducing effect on price volatility of maize grain than on maize meal price volatility. Most volatility discovery occured in maize meal market although government intervened in maize grain marketing. The study concluded that increased government participation significantly reduced price volatilities for both commodities. Moderated government intervention to a level that still guarantees arbitrage by many players, especially in the maize meal market, was recommended
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