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1.
2. ANALYSIS
OF THE MARGINS
ALONG THE MARKETING CHAIN
OF SMALL RUMINATS IN THE
TECIMAN MUNICIPALITY OF THE
BRONG AHAFO REGION OF
GHANA
3. BACKGROUND
Livestock production is a major feature in Ghana’s
agriculture providing:
Income
Food
Draught power
Contributes 2% to Ghana’s GDP (GSS 2011)
4. The marketing of small ruminants like any other
agricultural commodity involves so many actors along
the chain before it finally gets to the end-user.
As these commodities move up the chain, value is
added thereby attracting additional funds and different
skills.
The different chains introduce the concept of marketing
margin differential which this study seeks to analyze
further.
5.
A critical analysis of the situation is therefore
necessary to ensure there is an enhanced margin
between the successive chains over what could be
made ordinarily (Lloyds TSB/Agriculture,2009)
6. Generally, farmers in the livestock subsector appreciate
the enormous contribution of small ruminants to their
household food and income security.
According to Komla and Tiyuntaba(2007), ineffective,
inefficient and hidden marketing systems militate
against the full benefit of small ruminants on a larger
scale.
7. Farmers are not getting their fair share of consumer
prices due to excessive margins couple with poor and
expensive transport infrastructure (Colman,1995)
Due to the existence of under developed markets,
farmers are seemed shortchanged by selling their
animals at very low prices to aggregators.
8.
Against this background, this research sought to
Analyze the margins along the marketing chain of
small ruminants in the Techiman municipality.
10.
The main focus of this research is to conduct an
analysis of the margins each actor make and the
associate cost incurred in performing the the function
along the marketing chain of small ruminants in the
Techiman municipality with the view of making
recommendations for improved and mutual benefits for
all actors.
11. To identify the sources and channels of sheep and
goats to the Techiman market.
To estimate the marketing efficiency and margins
obtained by the each actor at each stage.
To estimate the volume of sales every month by each
actor.
To estimate the Gross margins, Revenue margins and
Variable cost at each stage.
Analyze the constrains at each stage of the chain.
12. Komla and Tiyuntaba (2007) reported that,
ineffective, inefficient and hidden marketing systems
militates against the full benefits of sheep and goats to
keepers.
To achieve total profits, producers, traders and
consumers need to know the best channels and markets
that yield the best of income (Gong,2007)
13.
This research therefore will among other things
critically examine the existing margins along the
supply chain and make appropriate recommendations
to policy makers for consideration.
14. Market. A market is an institution within which the
forces of demand and supply operate, sellers and
consumers are in constant communication and there is
a change of title to goods and/services , Kalingo and
Kariuki (2001)
Marketing. Gilles and Reuben (2006) defined
marketing as creating a need for your particular product
and satisfying that need.
15. Marketing margin. Sadhu and Singh (1995) stated
that marketing margin is the difference between the
price consumers pay for the final product and the
amount producers receive.
Sheep and Goats marketing channels. According to
Amaledegn (2011), a marketing channel refers to the
sequences of enterprise by which a product is moved
from the producer to the final consumer.( sheep and goats
channels: producers- aggregators-wholesalers-retailers)
16. CHALLENGES IN MARKETING SMALL
RUMINANTS
physical infrastructural deficits such as roads and
communication systems impede the flow of livestock to
formal markets by the resource-poor farmer to access
profitable markets giving rise to imperfect information
among market players. ( Ayele et al, 2006 ) .
17. Sample size:
A total of 70 actors will be covered by the study.
ACTORS
SHEEP
GOATS
KEEPERS
10
10
ASSEMBLERS
5
5
WHOLESALERS
5
5
RETAILERS
15
15
18. Sampling techniques
I will employ the following sampling techniques to
gather the needed data: A simple random sampling in selecting keepers
Purposive and convenience for the other actors
19. DATA COLLECTION
Types of data:
Primary data. I will obtain this data through
questionnaire administration covering the sample size.
Secondary data. I will consult relevant publications and
search the internet to generate this data. The Techiman
MoFA office is one institution that is very crucial in this
regard.
20. Data collection instruments
The principal instrument is a structured questionnaire.
The use of interviews and personal observation will
also play an important role in both quantitative and
qualitative data.
21. DATA ANALYSIS
The use of SPSS, simple ranking and marketing
margins (descriptive analysis) would be employed and
results presented in : Frequency tables
Percentages
Bar charts
Pie charts
22.
Gross and Net Marketing Margins Analysis will be
used to analyzed the margins at each stage of the chain.
23. It is my expectation that, the research will come out
with the following:
Identify the sources and channels of sheep and goats)
to the Techiman market.
Indicate which chain yields the most profit.
Ascertain the constrains, variable cost and
inefficiencies in small ruminant marketing.
24.
1.
2.
3.
4.
5.
SECTION A: DEMOGRAPHICS
Name of respondent. Mr./Mrs./Ms. ………………………………………………….
Age . A. Bellow 20
B. 20-30 C. 31-40 D. 41-50 E. 51-60 F. 60+
Sex. Male/ Female
Educational background. A. No B. Non formal C. Primary D. JHS E. SHS F.
Tertiary G. Others Specify………………………………………..
Marital status. A. Married B. Single C. Divorced D. Cohabitation E. Others
specify………………………………………………..
SECTION B: SMALL RUMINANT PRODUCTION
1.
2.
3.
4.
What animals do keep ?. A. Sheep B. Goats C. Both
Under what system do you keep your animals. A. Intensive B. Semi-intensive C.
Extensive
Any reason for your choice above.
………………………………………………………… …………
What is the size of your herd ? …………………………………………………
25. 4.
5.
6.
1.
2.
3.
4.
5.
6.
Why keep these animals ?. A. Economic B. Social C. Religious
What inform your choice of animals ?. A. Easy to keep B. Market demands C.
Most common within D. No special reason
How old are you in this business
COST OF PRODUCTION
Where is your feed source ?. A. Own farm B. Kitchen waste C. Feed mills D.
Others
specify………………………………………………………………………………
………
Do you incur any cost in obtaining the feed?. Yes/No
If yes, how much. GHC……………………………………………..
What has been your practice when the animals falls sick ? . A. slaughter for home
consumption. B. Immediately sent to market. C. Call in vert. officer. D. Threat it
my self.
If C or D, at what cost then ?. GHC………………………………….
What has been the trend of your herd health for the past 5 years
……………………………………………………………………………..
26. 7.
8
9
10
11
Apart from the above, list any other associate cost to your enterprise
…………………………………………………………………
…………………………………………………………………..
At what age do normally sell animals ?............................
Who determines the price ?.............................................
How much do you normally sell an average life animal for ?.......................
What factors influence prices of your livestock ?
HIGHER PRICES
LOWER PRICE
27. 12
13
How will you rate the profitability of your enterprise on a scale of 1-10
………………………………..
Any comment and/or recommendation?...............................................
30.
Sadhu, N.A and Singh, A., (1995), Fundamentals of
Agricultural Economics Himlaya Publishing House,
Bambay.
Kilingo, J.K and J.G. Kariuki, (2001), Marketing of
Smallholder Produce, A Synthesis of Case Studies in
the High Lands of Central Kenya.
31.
Gilles, Alexander, CFA and Reuben Mondejar, Ph.D.
(2006), Guide to Entrepreneurship. Manila: SinagTala Publishers, Inc.
http://www.smileyberks.com/cpr
Assefa Amaledegn (2011), Marketing Your Sheep
and Goats, Ethiopia Sheep and Goat Productivity
Improvement Program (ESGPIP) TECHNICAL
BULLETIN No.44
