Evaluation of the Performance of the Table Egg Marketing System in Ghana

Abstract

The study evaluated the performance of the table egg marketing system in Ghana by analysing the market, structure, price integration processes and the impediments to table egg. Marketing efficiency. The methods of analysis employed included descriptive analysis, marketing margin analysis and econometric (regression) analysis. The market structure analysis, using the commodity sub-systems approach, showed that marketing channels for the table egg are moderately organised with the producer-retailer network being the dominant channel. There were few wholesalers but a large number of retailers. The distribution of the marketing margin appeared to favour the producers more, than the Wholesalers and retailers. Over 60 percent of marketing margin is taken up by transactional costs, largely the cost of transportation. The econometric models employed in the regression analysis of monthly prices of table eggs revealed that there is no short run market integration between the wholesale destination market (Accra area) and the wholesale producer markets (Sunyani and Kumasi areas). Also in the long run, there exists no market integration. The results however suggest that there exists moderate commodity arbitrage and price adjustment between market pairs. The outcome of the analyses shows that the table egg marketing system is operational but that price changes in the destination market do not result in parallel changes in the producer markets in the short run or long run. Low prices, inadequate storage facilities, inadequate capital, transportation difficulties and insufficient market information serve as impediments to efficient arbitrage and integration of the markets (producer and destination markets). It is, therefore, recommended that farmer groups be strengthened to centralise table egg marketing. Additionally, government policy should be geared towards the promotion of egg consumption, processing, improved market information flow between producing and consumption areas and the provision of credit to producers to enhance efficient price formation and integration of the table egg marketing system in Ghana.