Analysis of market structure and performance of cattle marketing in Southwest Nigeria

Abstract

The protein intake of Nigerians is far below the global average, despite the large population of livestock in Nigeria. Attributable to this scenario is the regionalized suitability of the livestock to the humid areas, thus leading to a situation in which there is a multiplicity of intermediaries and stakeholders in the marketing chain. The study investigated the structure of cattle markets in Lagos State with pprimary data collected using structured questionnaires. Multi-stage sampling technique was deployed to sample 169 respondents. Herfindahl-Hirschman Index (HHI) examined the nature of competition, while Shepherd-Furtrel Model measured market efficiency. Weak competitiveness was observed for the cattle markets with HHI values of 0.34 and 0.40. The marketing efficiency indices ranged from 0.02 to 0.43 indicating inefficient system. Measures to eliminate impediments to new entrants to the markets should be introduced while market supervisory government agencies should intensify oversight functions to minimize collusion practices among the associations. Exposure of the marketers to educational activities such as seminars to enhance efficient marketing be made available.