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African Journal of Agricultural Marketing ISSN 2375-1061 Vol. 8 (5), pp. 001-007, May, 2020. Available online at 
www.internationalscholarsjournals.org © International Scholars Journals 

 

Author(s) retain the copyright of this article. 
 
 

Full Length Research Paper 

 

Sheep marketing performance: A case study 

of Khartoum State, Sudan 

 
Abda Abdalla Emam* and Ibrahim Nourien Malik 

 
Department of Agricultural Economics, Faculty of Agricultural Studies, Sudan University of Science and 

Technology Khartoum North, P.O Box 71, Sudan. 
 

Accepted 24 November, 2019 
 

The main objective of this study is to investigate the possibility of improving marketing efficiency, 
regarding the emphasis concerning marketing cost and margins. The study was based on both primary 
and secondary data. Primary data was collected through questionnaires, and the questionnaires were 
applied to the wholesalers, producers and retailers through stratified random sampling, while 
secondary data was obtained from sources related to the study area. Descriptive statistics analysis and 
marketing performance measurements were used as tools of analysis. The study showed that, the 
sheep marketing performance was featured by high transportation costs, costs’ losses and mortality, 
taxes and multiple fees. In order to reduce marketing costs, the study recommended construction and 
improvement of infrastructures (for example, roads and transportation means, improvement of loading 
and un-loading practices and utilization of large well equipped trucks suitable for physical 
characteristics of animals), and that the governments should reduce the imposed taxes and multiple 
fees on producers and traders, as well as establish risk management units in the areas where armed 
robbery and insecurity are prevalent. 

 
Key words: Sheep marketing, marketing costs, marketing performance. 

 
INTRODUCTION 

 
Sudan is the largest country in Africa, occupying an area 
of about one million mile square (Saboun, 2002). The 
agricultural sector plays a significant role in the Sudan 
economy (Ministry of Finance and Natural Economics, 
2003). The main agricultural system in Sudan is 
composed of five main sub-sectors, namely: (1) the 
traditional rain-fed, (2) the mechanized rain-fed, (3) 
livestock and (4) forestry. El Hassan (1994) stated that 
the main livestock production system in the country is as 
follows: traditional pastorals (nomadic and semi-
nomadic), agro-pastoral and the agrarian system. The 
main livestock breeds in Sudan are camels, cattle and 
sheep. The livestock population put the total animal 
population at about 40, 49, 42 and 37 million herd of 
cattle, sheep, goats and camels, respectively (FMAR, 
2005).  

Abbott (1993) has summarized the tasks and  
 
 
 
*Corresponding  author.  E-mail:  safarefga@hotmail.com.  Tel: 
00249912945646, 00249122812551. Fax: 0024985311896. 

 
 
 
 
responsibilities of marketing as a process of finding a buyer 
and transferring ownership, assembling, transporting, 
storing, sorting, packing and processing to the customers; 
and providing and presenting the finance for marketing, risk-
bearing and assorting to consumers. Dixie (1989) has 
described the definition of marketing as the series of 
services involved in moving a product or a commodity from 
the point of production to the point of consumption. Also, 
Emam (2002) has described the definition of marketing as 
the series of services involved in moving a product or a 

commodity from the point of production to the point of 
consumption. The movement of sheep from the 
production area to the consumption centre plays a major 
role in the sheep marketing performance, due to the fact 
that production areas are at a far distance from the 
consumption centers in Sudan. The far distance may 
result in excess services of marketing, mortality and loss 
of animals. Sheep markets in Sudan lack some basic 
infrastructural facilities such as paved roads and transport 
(Babiker and Abdalla, 2009). The sheep are mainly 
transported by trekking from the primary markets to the 
secondary markets, and seldom by trucking to the final 

file:///C:\Users\user\Documents\REPUBLICATION\AGRICULTURAL%20SCIENCES\AppData\Local\Temp\www.internationalscholarsjournals.org


 
 
 

 

markets (Babiker and Abdalla, 2009). Thus, the results 
will be high marketing cost and margins, which have a 
negative effect on the overall sheep marketing 
performance. The performance of marketing system can 
be measured in terms of its  
effectiveness and cost efficiency 
(http://www.fao.org/docrep/004/w3240e/w3240e12.htm). 
The movement of goods from producers to consumers 
must be done at the lowest cost without affecting 
consumer satisfaction (FAO, 1960). This research is very 
important in providing implications for policy makers, 
investors and producers with the necessary conclusion 
and recommendations, to allow them greatly improve this 
sector. The general objective of this study is to 
investigate the possibility of improving sheep marketing 
performance with special emphasis on marketing cost 
and margins. The specific objectives of this study are to 
study the sheep marketing channels, physical distribution 
costs and marketing costs and margins. 
 

 
MATERIALS AND METHODS 
 
The study area 
 
The division of livestock markets in Omdurman are divided two 

markets 
 
Elmoueleh livestock market: This market is located in the 
municipality of Omdurman, monitored by the administrative unit of 
the Western Rural Area of Omdurman. It lies between latitude 
15°:23 N and longitude 32°:19 E. The market covers an area of 
85,000 m, and it represents the export or central market. The 
majority of buyers are exporters and butchers, while wholesalers 
and agents are the dominant sellers. 
 
Dar Elsalam livestock market: This market is cited in the 
peripheral western area of Umbadda municipality under monitoring 
by the administrative unit of Dar Elsalam. It lies between latitude  
15°:30 N and longitude 32° :23 : 07" E, covering an area of 50,000 
m. It represents the main market for local consumption, in which the 
majority of buyers are consumers and meat exporters, while 
retailers are the dominant sellers. The Animal Resource Company, 
which is a subsidiary company of the Animal Resource Bank, 
supervises these markets. 

 

Data collection 
 
The data was collected from both primary and secondary sources 
related to the field of the study. Secondary data was collected from 
the Ministry of Animal Wealth, Bank of Sudan, Ministry of Finance 
and National Economy and the Ministry of Agriculture and Forestry, 
while primary data was collected by means of questionnaires. Three 
types of questionnaires were specially designed to collect 
information about marketing costs and margins of producers, 
wholesalers and retailers’ levels. 

 

Sample size 
 
Stratified random sampling has been followed by a sampling frame 

that was obtained from the administrative unit of the western rural 

area and the livestock traders union. The sampling frame is a list of 

 
 
 
 

 
wholesalers, exporters and retailers at each market. The total 
numbers of producers at the markets are unknown, as estimated by 
the Animal Resource Company. Practical considerations such as 
seasonal supply, research budget, time and transport facilities were 
the main factors that determined the sample size. The sample size 
of 45, 55 and 70 respondents from wholesalers, producers and 
retailers were chosen, respectively. 

 

Tools of analysis 
 
Descriptive analysis and marketing margins measurements were 

used to examine the marketing performance or efficiency. 

 

A guide to sheep marketing costs and margins 
 
The intention of this guide is to identify the basic concept of sheep 
marketing costs and margins. Marketing costs are the costs that are 
incurred during the movement of the commodity from the production  
areas to its final destination 
(www.fao.org/docrep/004/w.3240e/w3240e12htm). This movement 
could be done by farmers, intermediaries, wholesalers and retailers. 
With increased urbanization and industrialization, marketing costs 
tend to become relatively higher than farm gate prices. However, 
sheep marketing costs include labor, transport, loading/ unloading, 
feeding cost and/ or mortality, official payment, commission and 
other costs. 

 

Loading and unloading costs 
 
Loading and unloading costs are the costs incurred during the 

process of moving the animals in and out of the trucks. 

 

Labor loading costs 
 
It is the amount of money paid to the laborer for loading the sheep 

on the trucks, in addition to his supervision and monitoring of the 

sheep during their movement to the final market. 

 

Labor unloading costs 
 
It is the amount of money paid to the laborer for unloading the 

sheep from the truck at the final markets. 

 

Transportation cost (truck rental) 
 
Transportation costs are costs incurred due to the movement of 
sheep from one place to another. Generally, there are two types of 
transportation cost: (1) Direct transportation cost, which is the direct 
payment of money from the farmer or trader to the truck owners, 
and (2) Indirect transportation cost, which occurs when the traders 
or farmers use their own vehicle. In the transportation process, 
payment to truck owners will be on per head basis or per journey. 
For the indirect transportation cost, the cost of hiring the truck as 
the best guess and the cost of a truck (owing to the trader), can be 
used (Shepherd, 1993). 

 

Losses or mortality costs 
 
During the marketing process, some of the animals may be lost, 

stolen or dead. The causes of such losses are countless and they 

vary. This type of cost occurs at all stages of the marketing 



 
 
 

 
channels. Cost of losses per head is treated as the average cost 

from three sizes: big, medium and small size of sheep, at each 

marketing level. The calculation is based on the following equation: 
 

The value of animals lost × 3 or 2% 
Cost of losses per head =  

The remaining animals available for sale 
 
where 3 or 2% is in the cases of trekking or truck transportation, 

respectively. 

 
Storage costs 
 
Storage is carried out in order to extend the period of availability of 
a product to consumers ( Shepherd, 1993) . It could be done by 
farmers, traders and/or consumers. Storage costs include only the 
rent cost which is the actual amount of money paid to rent the 
stores or fences and it is usually paid on per head basis. 

 

Animal feeding cost 
 
Feeds purchased for the sheep usually contain a mixture of agro-

industrial feeds. The composition of the rations depends on the 

availability and cost of its components. 

 

Taxes, fees and commission payments 
 
These types of costs vary from one place to another. They include 

taxes and fees paid to government, like zakat, veterinary charge, 
water charge, license and commissions paid to some agents at all 

marketing levels. 

 

Calculation of total marketing costs 
 
Total marketing costs were calculated by summing up all the costs 
incurred during the process of sheep marketing. The calculation 
varies according to the complexity of the sheep marketing channel, 
numbers of intermediaries and other services. 

 

Marketing margins 
 
Based on the market level, several types of marketing margins are 
being considered. The wholesaler margin is the difference between 
the price paid by the wholesaler and the farm gate, or producer 
price (in the case of a non-existent local trader), while the retailer 
margin is the difference between the price, the retailer pays and the 
retail price he charges the consumers. Marketing margins can be 
calculated for different levels of the market as follows: 
 
Marketing margin = P1 – P2 

 
Where: 
 
P1= Selling price at certain marketing level 
P2 = Buying price at the same marketing level 

 

 

RESULTS AND DISCUSSION 

 

Sheep marketing channels 

 

Figure 1 showed the flow of sheep, starting from 

 
 

 
 

 

producers and going through several traders to finally 
reach the consumers or exporters. Producers either sell 
their sheep to the wholesalers or to the butchers and rural 
traders. Rural traders (Gallaji) purchased the sheep from 
producers in primary markets and sell them to 
wholesalers or butchers at central markets. However, the 
wholesalers sell their sheep to retailers, exporters, 
butchers and/or institutions, while retailers sell their 
sheep to consumers, butchers and/or institutions. 
 

 

Results of the physical distribution cost analysis 

 

The physical distribution cost of sheep per head is 

composed of two main activities (transportation and 

storage). 
 
 

Transportation 
 

There are two means of sheep transportation from the 

production areas to Elmouleh/Darelsalam livestock 

markets. These are trekking and trucks transportation. 
 
Trekking: Trekking is the primary means of moving 

livestock from producers to consumers or export market. 
Table 1 showed the physical distribution cost of sheep 
per head at producer level by methods of trekking from 
Elfasher to Elmoueleh/Darelsalam livestock market. The 
total physical distribution cost per head of the sheep was 
calculated to be SD 1639. The major cost items were 
taxes, fees and veterinary charges, which constituted 
30.51% of total physical distribution cost per head. This 
was due to the lack of veterinary services and feeds 
along the road and along the period of trekking (36 days). 
The second cost item was losses or mortality which 
represented about 28.92% of the total physical 
distribution costs. Payments to animal drivers, water 
charge, guides and feeding plus labor costs represented 
12.81, 12.20, 9.15 and 6.41% of the total physical 
distribution cost per head, respectively: 
 

Cost of losses (big size) = 3×18500/97 = 572 SD Cost of 
losses (medium size) = 3× 16000/97 = 495 SD Cost of 
losses (small size) = 3× 11500/97 = 356 SD Average cost 

of losses per head at producer level = (572 + 495 + 356)/ 
3 = 474 SD. 
 
Truck transportation: Truck transportation is an 
alternative means of transporting sheep from the 
production areas to the consumption centre. From Table 
1, the physical distribution cost of the sheep per head at 
producer level by methods of truck from Elfasher to 
Elmoueleh livestock market was SD/ head 3373. Truck 
rent per head was SD 2050, and this constituted 60.78% 
of the total physical distribution cost per head. The high 
truck rent was due to lack of improved roads, insecurity 
situation (particularly in Darfur) and inadequate number 



  
 
 

 

Producers 
 
 
 
 
 
 
 

 

Rural traders 
 
 
 

 

Wholesalers or butchers 
 
 
 
 
 
 
 

 

Retailers 
 
 
 
 
 
 
 
 

 

Exports 

 
 
 
 
 
 
 
 
 

 

Butchers 

 
 
 
 
 
 
 
 
 

 

Consumers 

 
 
 
 
 
 
 
 
 

 

Institutions 
 

 

 
Figure 1. Sheep marketing channels. Source: field survey, 2004. 

 
 

 

of specialized trucks of transporting sheep on a large 
scale. Although the truck rent cost was high (SD 2052), it 
was preferable by the producers or traders, due to its 
advantage of quick delivery. It took three days to reach 
the market and the final consumer. Fees, taxes and 
veterinary charges (government payments), loading/ 
unloading, losses or mortality, feeding plus labor and 
water charge cost constituted 14.82, 11.86, 9.28, 3.11 
and 0.15% of the total distribution cost per head, 
respectively.  

The largest cost item was truck rent (SD 2050), which 
constituted 60.78% of the total physical distribution cost 
per head. A trek recorded high cost in terms of taxes, 
fees and veterinary charge (government payments) (SD 
500), which constituted 30.51% of the total physical 
distribution cost per head, and losses or mortaliy 
(SD474),which constituted 28.92% of the total distribution 

 
 
 

 

cost per head, under the level of losses or mortality rate 
of 3% compared with 2% by truck mortality rate. The 
reason was the short period of transit by truck, and the 3 
days comparison with the 36 days by trek. However, the 
physical distribution cost per head of sheep by trekking 
method was less than trucking. 
 
 

Storage (Cost of keeping it in the market till the time 

of sales) 
 

Storage cost consists of feeding cost plus cost of store 
rent. Farmers used this period to fatten or recondition 
cost per head, and losses or mortality (SD 474), which 
their sheep. Stored sheep are usually fed with a mixtureof 
agro-industrial feeds such as cotton seed cakes, straw, 
groundnuts shells, etc. The composition of the rations 



 
 
 

 
Table 1. Physical distribution costs of sheep (SD /head) at producer level by methods of trekking and truck from Elfasher to Elmoueleh/ 

Dar Elsalam livestock markets, 2004.  
 

  By trekking By truck 

Item Cost per %of total distribution n Cost per head %of total 
 head (SD) cost (S) distribution cost 

One guide Khabier for 1000 heads 150 9.15 - - 

Six animal drivers for 1000 heads 210 12.81 - - 

Truck rental - - 2050 60.78 

Loading / unloading - - 400 11.86 

Fees, taxes, veterinary charge 500 30.51 500 14.82 

Water charge 200 12.20 5 00.15 

Losses or mortality (3%)474 28.92 (2%)313 09.28 

Storage - - - - 

Feeding + labor 105 6.41 105 03.11 

Total distribution cost 1639 100 3373 100 
 

Source: field survey 2004. 
 

 
Table 2. Storage and feeding cost in Elmoueleh/ Darelsalam livestock market SD/herd per day.  

 
Cost item SD/ herd/day % of total cost 

Cotton seed cake 45.00 39.13 

Dura grain 20.00 17.39 

Groundnut shells 35.00 30.43 

Herd man 5.00 4.35 

Store rent (fence) 10.00 8.70 

Total cost 115.00 100.00 
 

Source: field survey, 2004. 
 

 

depends on the food availability and costs of its 
components. Table 2 showed the costs of sheep feeding 
and store rent per head for each day in 
Elmoueleh/Darelsalam markets. These major costs items 
are cotton seed cake, dura grain, groundnut, herd man 
cost and rent stores. The total cost of sheep feeding per 
head for each day was calculated to be SD115; whereas 
cotton seed cake constituted the major cost item 
(39.13%) of the total storage and feeding cost, followed 
by groundnut shells (30.43%), dura grain (17.39%) and 
herd man (4.35%). The cost of store rent was calculated 
to be SD10, which constituted 8.70% of the total storage 
and feeding cost per head. 
 

 

Marketing costs analysis transported by truck from 

Elfasher to Elmoueleh/Darelsalam livestock 
 
Table 3 showed the total marketing costs of sheep at 
different marketing levels (SD/head) transported by truck 
from Elfasher to Elmoueleh/Darelsalam livestock 
markets. The results revealed that, the truck rental cost 
(SD 2050) was the most important cost items at the 
producer level. It constituted 41.11% of the total 

 
 

 

marketing cost per head. This could be due to the high 
risk of moving animals in western Sudan, arm-robbery, 
poor infrastructures and shortage of trucks specialized in 
animal transport. The second highest cost items was 
taxes, fees and veterinary charge (government 
payments) which constitute 10.52% of the total marketing 
cost per head. The reason is direct and indirect taxes and 
multiple fees imposed on producers and traders by the 
government along the roads. High taxes and multiple fees 
restrict the volume supplies affecting the sheep price 
level and net farm income.  

Loading and unloading cost of sheep constituted 8.41% 
of the total marketing cost. This process was sensitive 
and needs highly specialized and skilled labor. The fourth 
and fifth cost items were losses or mortality at wholesale 
and producer levels which constituted 7.44 and 6.58% of 
the total marketing cost per head, respectively. Poor 
infrastructures, unskilled labor, lack of adequate animal 
feed and water were the major factors increasing losses 
and mortality cost. High losses or mortality at the 
wholesaler level is due to the fact that wholesalers 
received large numbers of sheep at one time. Therefore, 
they need good management and services to ensure 
control over his herd. Any shortage of these factors 



 
 
 

 
Table 3. Total marketing cost (SD per head) of sheep transported by truck, from Elfasher to Elmoueleh/ Darelsalam livestock (2004).  

 
  

Producer 
% of total 

Wholesaler 
% of total 

Retailer 
% of total 

 

 Cost item marketing marketing marketing  

 
level level level  

  cost cost cost  

     
 

 Truck rent 2050 41.11 - - - - 
 

 Loading/unloading 400 8.41 - - - - 
 

 Losses of mortality 2%,313 6.58 2%, 354 7.44 1%,188 3.95 
 

 Taxes, fees and veterinary charge 500 10.52 175 3.68 125 2.63 
 

 Feeding + herd man 105 2.21 105 2.21 105 2.21 
 

 Water charge 5 0.11 5 0.11 5 0.11 
 

 Storage - - 10 0.21 10 0.21 
 

 Commissions 100 2.10 100 2.10 100 2.10 
 

 Marketing cost 3473 73.04 749 15.75 533 11.21 
 

 Total marketing costs       
 

 
Source: field survey, 2004. 

 

 
Table 4. Sheep marketing margins (SD/ head).  
 
 

Marketing 
 Big size   Medium size   Small size 

 

 

Buying Selling Marketing Buying Selling Marketing Buying Selling Marketing 
 

 level  

 

price price margins price price margins price price margins  

  
 

 Producer -  - -  - -  - 
 

 Wholesaler 18500      11500   
 

 Retailer       13000   
  

Source: field survey, 2004. 
 

 

increases the cost of losses or mortality. Nonetheless, 
sheep feeding, water and commission were the same for 
all traders. Generally, most of the cost items incurred 
during the marketing of sheep, such as taxes, fees and 
truck rent were paid on per head basis. Therefore, small 
size of sheep is highly affected, because they share other 
sizes with similar cost and fetch less prices.  

From the table, the producer shared high percentage in 

total marketing costs (73.04%), while wholesalers and 

retailers shared only 15.75 and 11.21% of the total 

marketing costs. 
 

 

Marketing margins at wholesaler level 
 

Table 4 showed the marketing margins for different 
marketing levels of sheep (SD per head), transported by 
truck, from Elfasher to Elmoueleh / Darelsalam livestock 
market. Animals were classified into three categories 
according to their sizes (big, medium and small). This 
classification was based on traders’ point of view, and the 
prices taken in this study were average market prices at 
the time of sale. The marketing margins measure the 
difference between selling and buying prices. For 
wholesalers, they were found to be SD 2500, SD 2000 
and SD1500 for big, medium and small size of sheep, 
respectively (Table 4). The retailer marketing margin 

 
 

 

measured the difference between the price that the 
retailer paid and the price that the retailer charged the 
consumer. From Table 4, the margins at the retailer level 
were SD 1500, SD 1500 and SD1000 for big, medium 
and small size of sheep, respectively.  

From the results, both traders got high marketing 
margins with higher margins noticed at the wholesaler 
level than at the retailer level. These results were in 
agreement with the results of a previous study. 
Rapsomanikis et al. (2003) recorded that in developing 
countries, poor infrastructures, namely transport and 
communications services, give rise to large margins 
because of the high costs of delivering the products for 
consumption. High prices are thus retained at the 
consumption areas despite their relatively low levels at 
the production areas, and vice versa. 
 
 
RECOMMENDATIONS 

 

Based on the finding of the study, the following 
recommendations are drawn: High marketing cost is the 
main cause of the imperfections of sheep marketing 
performance. However, marketing cost can be improved 
by transportation, which is a significant segment of 
marketing cost. Thus, the following means are suggested 
to reduce transportation cost: 



 
 
 

 

(a) Improving infrastructure such as roads, markets, etc. 
(b) Utilization of a large specialized truck, suitable for 
physical characteristics of animals. 
(c) Establishment of risk control units in areas where arm 
robbery and violence exist. 
Physical losses or mortality cost can be reduced by using 

the following: 
 
(i) Provision of animal feed and water at the market 
throughout the year. 
(ii) Improving loading and unloading practices by labor 
training. 
(iii) Government should reduce the taxes and fees 

imposed on producers and traders. 
 
 
REFERENCES 
 
Abbott JC (1993). Marketing, the rural poor and sustainability. 

Agriculture and food marketing in developing countries: Selected 
reading: The Netherlands CTA. 

Babiker BI, Abdalla AG (2009). Spatial price transmission: A study of  
sheep markets in Sudan. Afr. J Agric. Res., 3(1): 43-56. 

 
 

 
 

 
Dixie G (1989). Horticultural marketing. Food and Agricultural 

Organization (FAO), United Nation, Rome, p. 111. 
Emam AA (2002). Agricultural Marketing. Printed in Ministry of 

Education press, Khartoum, Sudan (Arabic version).  
El- Hassan AM (1994). Livestock price policy: With special reference to 

sheep in the Sudan. M.Sc. Thesis, (Agric-economics), Faculty of 
Agriculture, University of Khartoum, Sudan,. 

FAO (1960). Marketing livestock and meats. Marketing guide No. 3, 
FAO, Rome.  

FMAR (Federal Ministry of Animal Resources(2005). Annual Report.  
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http://WWW.fao.org/docrep/004/w3240e/w3240e012.htm. 
Ministry of Finance and Natural Economics (2003). Annual reports 

(1997-2003). Khartoum, Sudan. 
Rapsomanikis G, Hallam D, Conforti P (2003). Market integration and 

price transmission in selected food and cash crop markets in 
developing countries: Review and application. Food and Agricultural 
Organization(FAO) www.fao.org/DOCREP/006/Y5117/y5117e06.htm. 
Accessed January 2006.  

Saboun IM (2002). Constraints of livestock raising and marketing in 
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Shepherd AW (1993). A guide to marketing costs and how to calculate 

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