Analysis of profitability of shrimp value chain in Delta State, Nigeria

Abstract

This study investigated the profitability of shrimp value chain. Primary data were obtained using well structured questionnaire from randomly selected 240 shrimp operators (harvesters, processors and marketers). Descriptive and inferential statistical tools were used to analyze collected data. The result revealed that the mean profit realized was N70,092 N36,255 and N26,097.30 by harvesters, processors and marketers respectively. Value added at was N500 and N1000 per basket by processors and marketers respectively. Test of hypothesis indicates that quantity sold (0.218), price (0.033), bargaining power (0.002) and union dues (0.099), showed positive and significant relationship with shrimp value chain profitability. While market levy and store rent showed negative relationship with profitability in shrimp value chain. It was recommended that there should be moderate store rent. Marketers should increase their bargaining power at the point of procurement and union dues should be reduced so that shrimp value chain profitability can be enhanced.