Economics of Swine Marketing in Kafanchan (Katsit)Market, Jama'a Local Government Area of Kaduna State, Nigeria

Abstract

A market survey of 30 swine traders in Kafanchan was conducted to evaluate the structure, conduct and performance of the market. Although there were many sellers and buyers and no collusion, Lorenz curve analyses showed that 30% of all traders handled 74% of the sales. The Gini coefficient was also high (0.53), indicating gross inequality in size distribution and seller concentration, hence oligopoly. Analyses also showed that the market is vertically integrated. Cost of transportation (N100 / animal) was the highest of the marketing services, representing 50.4%. Total cost of marketing services (N198.26 /animal) was a small proportion (6.5%) of final sale price. Estimated gross margin was N742.36/animal) which was 24.2% of the sale price. The only element of barrier that existed was the high operating capital required. Price determination was by haggling and no standardization of product existed. The need and means of improving the nature of competition are highlighted.

Key words: Swine, market structure, conduct, performance, barrier