Structure, efficiency, and cost-benefit analysis of crayfish marketing in major markets in Calabar, Cross River State, Nigeria

Abstract

This study examines the cost-benefit analysis and marketing efficiency of crayfish trade in three major
markets in Calabar, Cross River State. Using a quantitative approach, the study analyzes marketing
margins, gross margins, profitability, and efficiency metrics, particularly employing the Shepherd Futrel
method to evaluate trade effectiveness across these markets. The study utilizes primary data collected from
crayfish traders and market unions, incorporating cost structures, sales volumes, and price variations over
a three-month period (January–March 2024). A comparative analysis of wholesale and retail margins is
conducted to assess variations in profitability and efficiency. Results reveal significant disparities in
purchase costs, variable expenses, and profit margins among the three markets: Nsidung Beach Market:
Purchase cost ₦145,000, total revenue ₦800,000, gross margin ₦740,000, profit ₦630,000, and marketing
efficiency of 94.11%, making it the most efficient market. Watt Market: Purchase cost ₦162,000, total
revenue ₦850,000, gross margin ₦768,000, profit ₦638,000, and marketing efficiency of 80.19%,
moderately efficient but impacted by higher transaction costs. Ika-Ika Oqua Market: Purchase cost
₦163,000, total revenue ₦875,000, gross margin ₦781,500, profit ₦641,500, and marketing efficiency of
74.95%, lower efficiency due to increased costs but generating the highest revenue. This research uniquely
integrates cost-benefit analysis with marketing efficiency metrics, distinguishing between wholesale and
retail margins to provide deeper insights into crayfish trade dynamics. Unlike prior studies that focus only
on profitability, this study quantifies efficiency in multiple market structures, shedding light on pricing
strategies, cost optimization, and economic viability of crayfish marketing. Findings suggest the need for
market infrastructure upgrades, reduced transaction costs, and price regulation frameworks to enhance
profitability and efficiency. Policymakers should invest in cold storage facilities, streamline union
regulations, and support digital trade platforms to reduce overhead expenses and expand market access.
This study underscores the economic potential and efficiency variations in crayfish trade, providing a datadriven
foundation for improving trade sustainability in developing economies. Future research should
explore international export opportunities, digital marketplace integration, and seasonal trade dynamics to
further optimize the seafood supply chain