Determinants of Profit Efficiency among Cattle Traders: A case study of Cattle Markets in Southwest, Nigeria
This study examined the profit efficiency among cattle marketers in Southwest, Nigeria. Primary data collected from 121 wholesalers and 379 retailers were analysed using descriptive statistics and Stochastic Profit Frontier Function. There was significant difference between average marketing experience of 27 years for wholesalers and 22 years for retailers (t=7.31 p< 0.05). There was significant difference (13.41, p<0.05) between number of cattle sold per month by wholesalers
(40) and retailers (21). The Profit Efficiency model for wholesalers shows that costs of feed, transportation and labour were negative and statistically significant (p<0.05). Household size impacted on the profit inefficiency of cattle marketers. Poor and high transportation cost constituted the major challenge (38%) affecting efficient wholesale cattle marketing while inadequate access to capital was the major challenge among the retailers (29%). Therefore, cattle traders should seek for alternative feedstuffs and equally increase their participation in cooperative societies to raise adequate fund for cattle marketing. They should further imbibe the adult education programmes of various state governments to enhance their decision making process.
Keywords: Cattle Markets, Profit Efficiency, Stochastic Profit Frontier Model.
