ANALYSIS OF THE MARGINS ALONG THE MARKETING CHAIN OF SMALL RUMINATS IN THE TECIMAN MUNICIPALITY OF THE BRONG AHAFO REGION OF GHANA

BACKGROUND Livestock production is a major feature in Ghana’s

agriculture providing: Income Food Draught power Contributes 2% to Ghana’s GDP (GSS 2011)

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.

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)

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.

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.

Against this background, this research sought to Analyze the margins along the marketing chain of small ruminants in the Techiman municipality.

Producers

Aggregators

Wholesalers

Chop Bars

Hotels

Restaurants

BBQs

End-users

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.

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.

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)

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.

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.

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)

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 ) .

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

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

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.

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.

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

Gross and Net Marketing Margins Analysis will be used to analyzed the margins at each stage of the chain.

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.

SECTION A: DEMOGRAPHICS1. Name of respondent. Mr./Mrs./Ms. ………………………………………………….

2. Age . A. Bellow 20 B. 20-30 C. 31-40 D. 41-50 E. 51-60 F. 60+

3. Sex. Male/ Female

4. Educational background. A. No B. Non formal C. Primary D. JHS E. SHS F. Tertiary G. Others Specify………………………………………..

5. Marital status. A. Married B. Single C. Divorced D. Cohabitation E. Others specify………………………………………………..

SECTION B: SMALL RUMINANT PRODUCTION1. What animals do keep ?. A. Sheep B. Goats C. Both

2. Under what system do you keep your animals. A. Intensive B. Semi-intensive C. Extensive

3. Any reason for your choice above. ………………………………………………………… …………

4. What is the size of your herd ? …………………………………………………

4. Why keep these animals ?. A. Economic B. Social C. Religious

5. What inform your choice of animals ?. A. Easy to keep B. Market demands C. Most common within D. No special reason

6. How old are you in this business

COST OF PRODUCTION

1. Where is your feed source ?. A. Own farm B. Kitchen waste C. Feed mills D. Others specify………………………………………………………………………………………

2. Do you incur any cost in obtaining the feed?. Yes/No

3. If yes, how much. GHC……………………………………………..

4. 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.

5. If C or D, at what cost then ?. GHC………………………………….

6. What has been the trend of your herd health for the past 5 years ……………………………………………………………………………..

7. Apart from the above, list any other associate cost to your enterprise ………………………………………………………………… …………………………………………………………………..

8 At what age do normally sell animals ?............................

9 Who determines the price ?.............................................

10 How much do you normally sell an average life animal for ?.......................

11 What factors influence prices of your livestock ?

HIGHER PRICES LOWER PRICE

12 How will you rate the profitability of your enterprise on a scale of 1-10 ………………………………..

13 Any comment and/or recommendation?...............................................

ACTIVITY

OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH

LITERATURE REVIEW

DATA COLLECTION

DATA ANALYSIS

REPORT WRITING

SUBMISSION OF DRAFT PROJECT

SUBMISSION OF FINAL PROJECT

THANK YOU

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.

Gilles, Alexander, CFA and Reuben Mondejar, Ph.D. (2006), Guide to Entrepreneurship. Manila: Sinag-Tala 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