ANALYSIS OF MARKETING EFFICIENCY OF FISH PRODUCTION IN LAGOS STATE

CHAPTER ONE

1.0   INTRODUCTION

1.1   BACKGROUND OF STUDY

Agriculture is the major economic activity of developing economies. In Nigeria, agriculture provides food for the increasing population; supplies adequate raw materials to growing industrial sector; is a major source of employment; generates foreign exchange earnings; and provides market for the products of the industrial sector (Okumadewa, 1997; World Bank, 1998; Winters, Janvry, Sadoulet and Stamoulis, 1998; Food and Agriculture Organization, FAO (2006) as cited in Eze, Lemchi, Ugochukwu, Eze, Awulonu and Okon 2010).

Fish is a very important agricultural product in the country as it occupies a prime place in the economy of the country. The term fish is a diverse group of animal that live and breathe in water by means of gill. Fish is one of the most diverse groups of animals known to man with over two thousand five hundred species. There are more species of fish than all other vertebrate (Eyo, 1992).

Fish is a very important agricultural product in Nigeria, and is largely consumed in the country especially due to its rich nutritional and medicinal values. More so, the large coastal area and continental shelf available in the country makes diverse varieties available in different areas at affordable prices.

Marketing of fresh fish passes through several market participants and exchange points before they reach the final consumers. The marketing system and structure is one of the main circumstances of socio economic condition of the local people and production system of any area (Alam et al., 2010). It is a chain of different systems involved in the marketing from production to consumer with intra-linkages and inter-linkages.

At various stages in the marketing chain, fish has to be packed and un-packed, loaded and un-loaded to meet consumer demand. Each handling cost will not amount so much but the sum total of all loading can be significant, depending on the length of chain (Ali et al., 2008).

Subsequently, a greater difference in price paid between urban consumers at the end of the chain and river bank price at the beginning of the chain can lead to a greater or wider market margin between the producer and the final consumer. However, when the market margin is high, it may be used to argue that producers or consumers are being exploited. Nonetheless, high margin cannot be completely justified (Ali et al., 2008).