DETERMINANTS OF CRAYFISH MARKETING PROFITABILITY BETWEEN DOWNSTREAM AND UPSTREAM MARKETS IN AKWA IBOM STATE, NIGERIA

Abstract

The study comparatively analyzed crayfish marketing across selected markets in Akwa Ibom State. The objectives of the study were to: estimate the factors influencing gross margin of crayfish marketing and identify constraints militating against crayfish marketing in the study area. Multistage sampling was employed to select one hundred respondents for the study. Data elicited using a well-structured questionnaire were analyzed using ordinary least square (OLS) regression, Gross Margin Analysisand means score. The regression results showed that upstream profitability is primarily determined by storage cost (1% level of probability), rents (10% level of probability), experience (10% level of probability), sex (5% level of probability), marital status (5% level of probability), and access to credit (5% level of probability) while downstream profitability is driven by scale (Stocks at 1% level of probability) and logistical efficiency (Transportation Cost at 1% level of probability). Based on constraints militating against crayfish marketing, the result showed that high cost of crayfish (=3.12) ranked 1st, high cost of transportation (=2.84) ranked 2nd, supply chain instability (=2.80) ranked 3rd, and poor market infrastructure (=2.78) ranked 4th were the severe constraints for upstream marketers. On the other hand, high cost of transportation (=2.88) ranked 1st, high cost of crayfish (=2.74) ranked 2nd, price fluctuation (=2.64) ranked 3rd were the severe constraints for downstream marketers. Crayfish marketing in Akwa Ibom State, Nigeria dominated by female gender proved a more profitable enterprise at the upstream market given the positive values of the gross margin on investment. The upstream marketers gained more profit than the downstream marketers in the business.  The study recommends that; credit and subsidies should be directed toward improving post-harvest handling and storage facilities at the primary landing sites.