Analysis of Poultry Production and Marketing in Addis Ababa, Ethiopia: The Case of Small Scale Intensive Poultry Producers

Abstract

This article investigated the structure conduct and performance of poultry market and determinants of total sale value of poultry supply in Addis Ababa, using survey data 2017/18. To address these descriptive statistics and econometric models were employed. The study used the structure-conduct-performance model to determine the structure conduct and performance of poultry market and multiple linear regression econometric models to analyze determinants of poultry marketable supply. The data were generated by individual interview using pre-tested semi structured questionnaires and take a total of 100 farmers sample and 75 traders. This was supplemented by secondary data. Following the four firms’ criteria of concentration ratio, Addis Ababa poultry market showed tight oligopolistic behavior in bird market and loss oligopoly in egg markets with 64.4 and 24.90 percent concentration ratio respectively. The maximum total gross marketing margin in bird and egg trading channel were about 53 and 41 percent respectively in channel XI and the highest producers share for bird and egg marketing were along producer- consumer. From OLS model sex, flock size, production cost and average lagged price of egg were found to affect total sale value of poultry significantly and positively, while distance to market affect poultry value negatively. The findings suggests that, effective market information service has to be established to provide accurate information on current poultry supply, in addition, emphasis should be given in reducing the level of oligopolistic nature of bird market and the government set strategies that improve competitiveness and efficiency of poultry market.

Keywords: poultry market; Structure conduct performance; Concentration ratio; marketing margin; oligopoly

DOI: 10.7176/JMCR/62-01

Publication date: November 30^th 2019