Delving Deeper into Market Concentration of Poultry Feed and the Driving Factors for Brand Switching: Evidence from Commercial Egg Producers in Nigeria

Fatai Abiola Sowunmi, Abeeb Adetunji Bello, Adebayo Isaiah Ogunniyi and Abiodun Olusola Omotayo
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Fatai Abiola Sowunmi: Department of Agricultural Economics, University of Ibadan, Ibadan 200005, Nigeria
Abeeb Adetunji Bello: Department of Agricultural Economics, University of Ibadan, Ibadan 200005, Nigeria
Adebayo Isaiah Ogunniyi: United Nations International Fund for Agricultural Development (IFAD), Abuja 900211, Nigeria
Abiodun Olusola Omotayo: Food Security and Safety Niche Area, Faculty of Natural and Agricultural Sciences, North West University, Mmabatho 2735, South Africa

Sustainability, 2022, vol. 14, issue 13, 1-18

Abstract: An increase in the price of branded feed has been a major problem for the poultry subsector of Nigerian agriculture, and brand switching for a cheap feed at the expense of quality is a common strategy used by egg-producing farmers. Using descriptive statistics, the Markov chain model and the logistic regression model, our study shows that almost 96% of the egg producers use branded feed while 43.1% switched feed brands because of the increase in the price of their preferred brands. Most farmers used Chikun (39.3%) and Top feed (23.2%) six months before data collection and during data collection, respectively. Our study found that approximately 37% of the feed sellers sold at least 10–50 bags per day. We revealed great inequality regarding market concentration: 50% of the feed sellers accounted for 89.5% of the total bags of feed sold per day. Hybrid had the highest customer loyalty. The study shows that Chikun gained 23.7% and 7.1% from Hybrid and Top feed, respectively, while Hybrid gained 36.0% and 35.7% from Chikun and Top feed (change in loyalty by egg producers), respectively. Membership of an association, distance to feed sellers, flock size and the average price of feed per bag were factors that influenced brand switching of poultry feed among egg producers. The study recommends that the government assists in subsidizing the price of critical ingredients (maize and soya bean) in feed production to prevent the price of eggs (the cheap source of protein) from becoming out of reach for most Nigerians.

Keywords: feed brand loyalty; switching behavior of egg producers; egg-producing farmers; logistic regression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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