Impact of Agricultural Cooperative Societies Loan on Goat Marketing in Nigeria

Abstract

The study analysed the impact of agricultural cooperative society loans on goat marketing in Nigeria. Specifically, the study described the socio-economic characteristics of the respondents, analysed the impact of cooperative loans on goat marketing, examined the profitability and performance of goat marketing, analysed the effects of agricultural cooperatives on returns to goat marketing, and identified the major problems affecting the goat marketing business in the study area. A total of five hundred (500) well-structured questionnaires were administered to goat marketers in the study area, but only four hundred and sixty (460) were returned completed and used for the analysis. Data were analysed using descriptive statistics, budgetary analysis, and multiple linear regression analysis. The results for the socio-economic characteristics revealed that the majority of the respondents were male (88.9%); the majority (58.5%) were aged 46–55 years, with an average age of 49 years; the majority (87.4%) were married; and most (52.4%) had household sizes of 6–10 persons, with an average household size of 7 persons. The majority (87.8%) had formal education, the majority (91.1%) were members of goat marketing associations, and most (52.2%) had 11–20 years of marketing experience, with an average goat marketing experience of 18 years. The reported impacts of agricultural cooperative loans on goat marketing were strategic selling (58.5%), increased market volume (52.4%), reduced distress sales (51.7%), improved transport and logistics (50.4%), and risk management (40.7%). Total revenue from goat marketing was ₦59,897,222.40, while total marketing cost was ₦43,470,568.40, representing 72.6% of total revenue. The marketing efficiency index for the goat marketers was 138%. This value is above 100%, signifying that the revenue generated from goat marketing was sufficient to offset all costs, with a substantial proportion remaining as a profit margin. Net income was positively and significantly influenced by marital status, years of formal education, amount of loan borrowed, and membership of marketing associations, but was negatively and statistically significantly influenced by the age of the goat marketers. Goat marketing in the study area faced problems including insecurity, the cost of acquiring goats, high transportation costs, inadequate credit facilities, inadequate market facilities, inadequate market information, medication costs, and multiple charges. It is therefore recommended that goat marketers adopt cooperative aggregation, leverage localised livestock insurance, and transition towards centralised, digitally supported livestock hubs, thereby reducing individual risks.