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).

Fish supply and marketing suffer so many obstacles ranging from shortage of supply, price fluctuation and spoilage in transit. Despite these, the people involved in the marketing of the fresh fish appear to be on the increase because of increase in the population and therefore, the demand tends to be high and increase in concentration implies more scope for the middlemen to exploit either the consumers by charging high or the producers by paying them lower price (Tomek and Robinson, 1981).

Olukosi and Isitor (1990) opined that marketing margin is an important indicator of market performance. Usually, the middlemen performing the role of marketing are being accused of earning higher profits in the marketing system (Bryceson, 1993).

1.2   STATEMENT OF THE PROBLEM 

The increase in fish consumption as a good source of protein and its cultural and religious acceptability are an indication that fish culturists must live up to expectation of meeting the local demand.

Efficiency in fish marketing has the potentials of stimulating fish production in the country in view of the huge deficit between local consumption and production. This might have a downward effect on the price of fish and thereby induce more consumption of fish by consumers. Another problem could be that there are no many persons in the area of fish production let alone the marketing part of it. For the establishment of farm, certain equipments or tools are needed; but in a situation whereby all these equipment are not in place, it can possibly lead to neglecting that aspect of farming either by individual or by the government. It could also be that there is little or no expert on fish farming. Finally, several researches has been carried out on the economics of fish marketing in Nigeria but not even a single research has been carried out on the analysis of marketing efficiency of fish production in Lagos state.

1.3   AIMS AND OBJECTIVES OF STUDY

The main aim of the study is to analyse marketing efficiency of fish production. Other specific objectives of the study include;

1.          to determine the factors affecting marketing efficiency of fish production in Lagos state.

2.          to determine the effect of marketing efficiency on fish production in Lagos state.

3.          to determine the extent to which marketing efficiency affects fish production in Lagos.

4.          to determine the factors affecting fish production in Lagos

5.          to proffer possible solutions to the problems.

1.4      RESEARCH QUESTIONS

1      What are the factors affecting marketing efficiency of fish production in Lagos state?

2      What is the effect of marketing efficiency on fish production in Lagos state?

3      What is the extent to which marketing efficiency affects fish production in Lagos?

4      What are the factors affecting fish production in Lagos?

5      What are the possible solutions to the problems?

1.5   STATEMENT OF RESEARCH HYPOTHESIS

H0: There is no significant relationship between fish production and profitability

H1: There is significant relationship between fish production and the profitability.

1.6   SIGNIFICANCE OF STUDY

The study on analysis marketing efficiency of fish production will be of immense benefit to the entire Lagos state in the sense that it will enable the government to train or empower more people to be involved in this part of agricultural production (fish production), the government will also fund fish farming and also and availability of marketing tools for a convenient marketing; this is because fish production in Nigeria is not only important as a source of rich protein, but it also can be used to bring about institutional changes. These changes can offer access to production assets and resources which can help to empower the poor and directly promote their livelihoods. Finally, the study will contribute to the body of existing literature and knowledge to this field of study and basis for further research.

1.7   SCOPE OF STUDY

The study on analysis of marketing efficiency of fish production is limited to Lagos State.

1.8   LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9   DEFINITION OF TERMS

Analysis  Detailed examination of the elements or structure of something.

Marketing Is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Efficiency The state or quality of being efficient.

Fish Production The farming of the fishes for the commercial use like food products in an area is called as Fish production or fish farming.