Gross Margin Performance and Marketing Efficiency of Beef across Delta State Abattoir, Open Market, Meat Shop and Hotel Distribution Channels

Abstract

The study evaluated the gross margin performance and marketing efficiency across four beef distribution channels in Delta State: abattoirs, open markets, meat shops, and hotels. Using a proportional random sample of 320 respondents drawn from four purposively selected Local Government Areas, the study applied gross margin analysis and Acharya’s Modified Measure of Marketing Efficiency (MME) to quantify gross margin and efficiency. Findings show variation in average total revenue and gross margins across channels, with abattoirs recording the highest gross margin percentage (39.7%) and hotels the highest marketing efficiency (1.56). Identified operational constraints that drive cost inefficiency and value loss include inadequate storage, high operational costs, limited credit access, and poor handling equipment. Policy recommendations focus on reducing operational costs, improving storage and hygiene infrastructure, strengthening access to credit, and building business management capacity among beef marketers to enhance competitiveness and value‑chain efficiency.