Analysis Of Margins, Channels And Constraints To Snail Marketing In Obio-Akpor Local Government Area, Rivers State, Nigeria – Research Paper

Dr. Ikechi Agbugba | Contributor on Agribusiness Topics

This study explores the dynamics of snail marketing in Obio-Akpor Local Government Area, Rivers State, Nigeria, focusing on key factors such as marketing margins, profitability, channels, and constraints. By surveying 110 snail marketers, the research reveals that wholesalers and retailers enjoy significant profits, with an estimated marketing margin of 14.89% and 23.03%, respectively.

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However, the study highlights also the critical issue of snail perishability, affecting 92.5% of respondents.

It calls for targeted educational initiatives to improve storage and handling practices, offering solutions to minimize losses and boost the snail marketing sector’s potential in the region. Enjoy the reading.       

Co-Authors Of The Study

Ikechi Kelechi Agbugba and Esther Ugo Nwachukwu, Department of Agricultural and Applied Economics, Rivers State University, PMB 5080, Port Harcourt, Nigeria, Department of Agricultural Economics, Federal University of Technology Owerri, PMB 1526, Imo State, Nigeria, Agribusiness Management, Rome Business School (Nigerian Campus), Ikeja, Lagos, Nigeria. The Keywords are Snail, margins, channels, constraints, marketing, and Nigeria.

ABSTRACT

The study investigates the economics of snail marketing in Obio-Akpor Local Government Area, Rivers State, Nigeria. The specific objectives of the study were to determine the marketing margin in snail marketing, estimate the profitability, describe the marketing channels, and identify the perceived constraints in snail marketing.

The study used multi-stage sampling technique to select 110 snail marketers from the study area. Primary data were   sourced from well-structured questionnaire.

Data for the study were analyzed using descriptive statistical tools such as mean, percentage and frequency.  Gross margin model and multiple regressions analysis were also employed in data analysis. 

The results of costs and return analysis showed that wholesalers and retailers received an average monthly profit of ₦55,195.7 (134.15USD) and ₦26,564.42 (64.56 USD) respectively. The estimated marketing margin stood at 14.89% and 23.03% for the wholesalers and retailers respectively.

Furthermore, the study identified three snail marketing channels in the study area and also identified snail perishability (92.5%) as accounting for the most serious problem faced by the respondents. 

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It was recommended, among others, that government and well-meaning institutions should embark on workshop exercise to educate snail farmers and marketers on how best and efficient safe practices for keeping snail so as to avoid incessant cases of perishability.

INTRODUCTION

Snail marketing is gradually becoming popular, especially since the advent of snail domestication in this part of the world (Ebewore & Achoja, 2012). This development could be owing to the need to bridge the gap between protein requirement and actual protein consumed by the people (Ciric et al., 2018).

There is a flourishing international trade of snails in Europe and North America. In France, the annual requirement is about 5 million kg, over 60% of which is imported; the estimated annual consumption in Italy is 306 million snails. In west Africa, snail meat has traditionally been a major ingredient in the diet of people living in the forest belt.

In Cote D’Ivoire for example, an estimated 7.9 million kg is consumed annually. In Nigeria, Enugu state in particular, snail’s farmers are very few. Taboos over snail production, consumption and marketing are broken in many places. The few farmers farm in small-scale (Vukašinovic-Pešic, 2017).

Snails are said to have high protein content and medically valuable and so for these reasons, the demand for snail meat has increased over the years in both domestic and foreign markets.

According to Vukašinovic-Pešic (2020) snails have been and are still a much sought-after food and come to the table as a gastronomous delight. The high iron content of snail meat is considered important in the treatment of Anaemia and also for combating Ulcer and Asthma (Efarmspro 2008).

According to Amao et al. (2007), snail meat is recommended in the past for treatment of ulcer, asthma and even at the imperial court, in Rome it was thought to contain aphrodisiac properties (arousing or increasing sexual desire) and was often served to visiting dignitaries in the late evenings. 

For instance, the feasibility of using snail meal of the giant African snail as a partial fishmeal substitute in raising fish such as Clarias gariepinus (Cobbinah et al., 2008). Snail meat is used for different curative purposes from ancient times till today using several formations.

For example, it can be a remedy to treat burns, abscesses and other wounds, measles, smallpox, and some skin disease, (Bayode, 2009). According to Leeflang (2005 cited by Ahmadu & Ojogho 2012) snails also fit in well with other farming activities helping to fertilize the soil prior to cultivation of other crops. Ahmadu & Ojogho (2012) noted that snail enterprise provides employment opportunities and income for the snail producers and marketers.

In Ghana, the bluish liquid obtained in the shell when the meat has been removed is believed to be good for infants‟ development. Slime from snail can be collected and used to cure eczema, skin rashes, swells, burns and insect bites. Also, it is used as an antihypertensive agent especially slime of Achatina species (Ugwumba et al., 2016).

According to Drozd et al. (2017) there is a growing demand for snail locally and internationally. In local markets in the study area, market price per snail is rising due probably to rising population, increasing demand and decreasing supply, hence widening demand-supply gap.

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This widening demand-supply gap can be attributed to the existence of inefficiency in the marketing system due to marketing problems such as lack of marketing information, poor market structure, high cost of transportation, lack of capital, poor storage facilities, limited markets and large number of intermediaries (Ugwumba & Obiekezie, 2008; Ugwumba & Okoh, 2010).

Among these problems the chances of viability in the marketing of snail should appear bleak. However, snail marketing could serve as a source of income to the marketers, as Reardon & Timmer (2005) would note that marketing offers households the opportunity to specialize according to comparative advantage and thereby enjoy welfare gains from trade.

They added that recognition of the potential of marketing as engines of economic development and structural transformation gave rise to a marketed paradigm of agricultural development during the 1908s. Thus, investigating the economic analysis of snail marketing is therefore pertinent 

The broad objective of this study is to analyze the margins, channels and constraints of snail marketing in Obio-Akpor Local Government Area (LGA) of Rivers State, Nigeria.

The specific objectives supporting the study are to determine the marketing margin in snail marketing in the study area; estimate the profitability of snail marketing; identify the marketing channels of snail marketing; and identify the perceived constraints in snail marketing. 

METHODOLOGY

The study was conducted in Obio/Akpor LGA of Rivers State, Nigeria. Obio/Akpor LGA is one of the two LGAs in Port Harcourt metropolis, Rivers State. It can be described as few urban towns and several suburban communities is bounded by Port Harcourt LGA to the South, Oyigbo to the East, Ikwerre to the North, and Emohua to the West.

It is located between latitudes 4°45’N and 4°60’N and longitudes 6°50’E and 8°00’E (Figure 1). Port Harcourt is the administrative capital of Rivers State, in the Niger Delta area of Nigeria. Port Harcourt lies between 4.75°N and 7°E with network of rivers and tributaries (for e.g., New Calabar, Orashi, Bonny, Sombrero and Bartholomew Rivers) which provide great opportunity for fish farming (Agbagwa et.al., 2021).

Obio/Akpor L.G.A is one of the Agricultural Zones of Agricultural Development Programs of Rivers State (Ibemere & Ezeano, 2014). Crop farming (e.g yam, cassava and vegetables) is the principal source of livelihood. There are also rivers, streams, and creeks which make fishing one of the occupations. These water bodies link the various communities to each other.

More recently is the population increase triggered by urban sprawl and the infrastructural development (the tertiary institutions – University of Port Harcourt, Choba and Ignatius Ajuru University of Education, Rumuolumeni and two important jetties at Rumuolumeni and Choba, respectively) in the area (Amachree et al., 2019).

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Purposive and simple random sampling technique was employed for the study. Firstly, four markets will be chosen in the study areas viz.: Rumuomasi Main market, Oil Mill market, Rumuodumaya market, and Oginigba Slaughter market. This selection is owing to the significant scale of snail marketing activity they are associated with.

Secondly, simple random sampling technique was employed in choosing   snail marketers across these markets in the following order: Rumuomasi Main market (25), Oil Mill market (25), Rumuodumaya market (25), and Oginigba Slaughter market (25). Thus, a total of 100 snail marketers formed the sample size for the study. Table 1.0 summarizes the procedure of the sampling.

Table 1: Summary Procedure for Sampling

Source: Researchers’ Initiative

Primary data were collected using well-structured questionnaire and interview schedule. The questionnaire was divided into sections to capture the specific objectives of the study.

 Data were analyzed using descriptive statistics such as frequency distribution and percentages. Marketing margin analysis and Gross margin model were also used for data analysis. 

Marketing Margin Analysis. It is expressed as:

MM = CP – RP /CP × 100                                                                                         

Gross Margin Model

The model is specified as:

GM = TR – TVC                                                                                                                     (7)

Where: 

GM = Gross margin 

TR = Total revenue 

TVC = Total variable cost TFC = Total fixed cost π (profit) = GM- TFC

RESULTS AND DISCUSSION

Cost and Return Analysis and Marketing Margin Estimation

Table 2 provides a detailed analysis of the cost incurred and return realized by the marketers of processed catfish in the study area. The marketers of the product were categorized into either wholesaler or retailer.

According to Aghazadeh (2016), two important parameters in marketing analysis include marketing cost and revenue.

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Table 2: Costs/Returns and Marketing Margin estimates of Snail Marketing in the      

                  Study Area

Source: Field Data Analysis, 2019; Wholesaler: Average cost of snail/bag = ₦ 42555.56; Selling price =

₦50000.00; Retailer: Average cost of snail/bag = ₦48108; Selling price = ₦62500.00; NROI = TR/TC 

Wholesalers of snail in the study area received an average monthly return of ₦503,244.4 (1,223.02 USD). However, they incurred an average total variable cost of ₦44,3640.29 (1,078.16 USD) monthly, thus given rise to an average gross margin of ₦59,604.11 (144.85 USD).

In the same vein, they incurred an average total fixed cost of about ₦4,408.41 (10.71) monthly. Total fixed cost was obtained from the sum of the average monthly cost on depreciation, rent, and security fee incurred by the marketers. The average monthly profit of a snail wholesaler in the study area was estimated at ₦55,195.7 (134.14 USD).

In addition, the net return on investment was estimated at 1.12. This may mean that for every ₦1.00 invested in snail marketing by a wholesaler, ₦1.12 return was realized.

Similarly, the retailers recorded an average monthly return of ₦244,612.3 (594.47 USD) which was followed by an average monthly variable cost and fixed cost of ₦213,868 (519.76 USD) and ₦4,179.88 (10.16 USD) respectively.

Average monthly gross margin and profit to the retailers were estimated at ₦30, 744.3 (74.72 USD) and ₦26, 564.42 (64.56 USD) respectively. Furthermore, just like their wholesaler counterpart, the retailers had net return on investment of 1.12 which would still mean that for every ₦1.00 invested in snail marketing by a retailer, ₦1.12 return is realized.

Overall, it can be surmised, that snail marketing business in the study area is profitable. Mafimisebi et al. (2013) agrees with the finding, also in consonance with this finding is the report of Aderounmu et al. (2019), whose work was on economic analysis of snail marketing in Ibadan Northeast LGA of Oyo State, Nigeria.

More so, this argument is confirmed by Ebenso (2007). Alongside Ajala and Adesehinwa (2007), they see snail marketing as a profitable agribusiness, below poverty line.

More so, the marketing margin analysis in Table 2 showed that snail wholesalers enjoyed an average marketing margin of ₦7,444.44 (18.09 USD) at an average cost of ₦42, 555.56 (103.42) per bag snail and a selling price of ₦50, 000.00 (121.51 USD) for the same bag.

Percentage marketing margin of 14.89% was estimated for the wholesalers.  However, the at an average cost price of ₦48, 108.00 (116.92 USD) per bag and a ₦62, 500.00 (151.89 USD) selling price for the same price, the gross margin for retailers was estimated at ₦14,392.31 (34.98 USD) and their Percentage marketing margin was at 23.03%.

Marketing Channels of Snail

Table 3 shows the distributive channel of snail in the study area as cutting across the producer, wholesaler, retailer and consumer. Supporting the table, is a chart in Fig 1.0 which further explains snail marketing channel in the study area.

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Table 3.0: Percentage Distribution by Channels of Snail Marketing in the Study Area  Channels 

Source: Field Survey, 2019; *Multiple responses  

Table 3 shows the market channel of snail in the study area. The main marketing channels were identified in the study area. Six (6) marketing channels were identified in the study area.

The first channel indicates the movement of the product from the producer through the wholesaler and retailer to the consumer and it stood at 42.7%.

The second channel depicts the flow of the product from the producer through the retailer only and finally to the consumer, it recorded 14.6%. Finally, the third flows from the producer through the wholesaler and then to the consumer and had 42.7%.

An illustration of the marketing channel for the snail marketers is shown on the Figure 1.0 below buttressing the movement of snail from the producer to the consumer through the various middlemen.

Fig 1.0: Marketing Channel for Snail in the Study Area Source: Researcher’s Initiative

Constraints to Snail Marketing 

Ranking of perceived constraints militating against snail marketing is expressed in Table 4.0. 

The Table presents the various perceived constraints as identified by the participants. Percentages used to present the constraints in their order of magnitude. From the Table, perishability (92.5%) accounted for the most serious problem faced by the respondents in the stud. 

Table 4: Distribution of Respondents according to perceived Constraints to Snail Marketing  

                  (n=110)

Source: Field Survey, 2019; *Multiple responses  

This result is supported by Ebewore & Achoja (2012), in their study titled Economics of Snail Marketing: Implications for Extension Service Delivery in Delta State, Nigeria. Chagomoka et al. (2013) indicated that, high perishability of indigenous vegetables is a principal challenge in the marketing and distribution of the produce.

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Price fluctuation ranked second at 65.4%, and was followed by the lack of finance which recorded 43.9%.  In their study on maize marketing, Agbugba et al. (2020), identified lack of finance as a serious constraint, whereas problem of inadequate supply (37.4%) posed a major constraint.

On the other hand, Agbugba & Shelaby (2018) submitted that limited supply, paucity of capital and spoilage are major problems. In essence, high transport cost scored 28.0%, while problem of numerous sellers and that of storage facility were jointly ranked sixth at 18.7%. 

CONCLUSION

The study concludes that marketing of snail is profitable and veritable business venture for the key players and is also dominated by females.

The study equally estimated the marketing margin to be at 14.89 % and 23.03% for the wholesalers and retailers, respectively; thereby establishing that the socio-economic characteristics of the marketers influenced the marketing margins of the snail dealers in the study area The study identified three distributive channels in snail marketing of snail in the study area.

However, despite the fact that marketing of snail is profitable, there are lots of challenges faced by the marketers. Among other bottlenecks, perishability ranked first as the typical problem facing the marketers.

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This may mean that the performance of the marketers in relation to their cost and return on investment is affected by the identified problem. 

RECOMMENDATIONS

The study makes the following recommendations based on the findings:

• Government and relevant stakeholder can use snail marketing as a means of empowering restive and unemployed youths considering that snail marketing by this study is profitable.
• Government and should embark on a workshop to educate snail farmers and marketers on best safe practices of keeping snail to avoid incessant cases of perishability.
• Affordable credit facilities should be provided by the government so that willing marketers can access them to improve on their business.

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