Cheese marketing amongst marketers in Kwara state, Nigeria: An economic analysis approach

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Date
2021-08-20
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International Journal of Agricultural Economics and Rural Development
Abstract
This study assessed the economics of cheese marketing amongst marketers in Kwara State. Specifically, the study examined the costs and returns to cheese marketing, assessed the market efficiency of cheese marketing, determined the marketing margins, described the structure of the cheese market and determined the factors influencing net returns of cheese marketing among marketers in the study area. A three stage sampling technique was employed in the selection of 120 cheese marketers. Data were collected using an interview schedule. Descriptive statistics, marketing efficiency model, marketing margin, Herfindahl Index, and multiple regression analysis were employed. The study revealed a monthly gross margin of N107, 778 with a marketing efficiency of 184.9% which implied that the marketing activities were efficiently implemented. The Herfindahl index value of 0.012 revealed a modest and sparsely populated cheese market. The estimated average marketing margin was N58.3 per kg of cheese. N102, 038 was revealed as the net income on cheese marketing on monthly basis with rate of return on investment (RORI) of 0.59. Therefore, cheese marketing is feasible, lucrative and investment worthy. The purchase cost (p<0.05), spoilage cost (p<0.01), storage cost (p<0.01) and marketing margin (p<0.01) were the statistically significant variables determining the net returns to cheese marketing among marketers in the study area. The study recommended the improvement of storage facilities to reduce spoilage and increase efficiency which could attract more able-bodied youth to work and invest in the industry.
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Sulaimon, T. T., & Nofiu, B. N. (2021). Cheese marketing amongst marketers in Kwara State, Nigeria: An economic analysis approach. International Journal of Agricultural Economics and Rural Development, 11(1).