What are the Drivers of Profitability of Broiler Farms in the North-central and South-west Geo-political Zones of Nigeria?

Abstract

This study analyzed the drivers of the profitability of broiler farms in the north-central and south-west geo-political zones of Nigeria. A multi-stage sampling technique was employed to choose a representative sample. A pre-tested, structured questionnaire was employed to gather cross-sectional data from 645 respondents between November 2017 and February 2018 for 2017 production year by trained enumerators. The data were analyzed with budgetary model, descriptive and inferential statistics. The results show that feed constitute about 75% of the total variable cost of producing 1 kg of the broiler. The cost implication of producing 1 kg of broiler stood at ₦583.20, while revenue realized from the sales of the same quantity of broiler was ₦734.69. The study further revealed that broiler farming is a profitable enterprise with profitability index of 39.85%. Furthermore, the positive drivers of profitability of broiler farms are years of experience of farmers, flock size, other means of livelihood, process broiler, and membership of the poultry association of Nigeria (PAN). Types of feed used and access to credit had a negative effect on the profitability of broiler farms. There will be a need to motivate farmers to increase their flock sizes by subsidizing high-quality day-old chicks, feed, and feed ingredients as well as other facilities. Research efforts should also focus on the development of efficient locally-made processing facilities to improve on the value addition activities of farmers thereby increasing the profitability of the farms. The enforcement of the policy on credit provision to farmers at a reasonable interest rate by commercial banks becomes crucial. In addition, it is suggested that farmers be encouraged to join PAN to increase the profitability of broiler farms.

Econometric analysis of profit efficiency of broiler farms in Ondo state, Nigeria

“…Feed cost accounted for the majority (approximately 66.7%) of total variable cost in the study area of broiler farms. Our findings support the findings of Adeyonu and Odozi (2022) and Arslan et al, (2018), who stated that feed is the most expensive variable cost in broiler production. This was followed by the cost of day old birds (25.69%), with the remaining cost items (9%) being medication, transportation, hired and family labour, fuel cost, and other miscellaneous costs.…”

“…The result further showed that the cost of producing a matured broiler bird was ₦1675.66, while ₦2521.44 was realized as income with profitability index of 45.53% implying that broiler farming is a profitable enterprise. The findings corroborate Khan and Afzal, (2018) and Adeyonu and Odozi's (2022) claims that livestock farms and other businesses can be successful, but at different rates depending on the farm.…”

The impact of management practices on the disease and mortality rates of broilers and layers kept by small-scale farmers in Dodoma urban district, Tanzania

“…Furthermore, chicken mortality decreased with the farmer's experience in chicken production (years). More years of experience in chicken production enable the farmers to gain knowledge of different management practices that result in good health and high productivity [ 76 , 77 ]. Over time, they face different challenges and learn how to solve them by sharing with other farmers.…”

An Assessment of Economic Sustainability and Efficiency in Small-Scale Broiler Farms in Limpopo Province: A Review

“…Costs of production will be decreased by selecting the proper kind of feed. Farms who employed ready-made feed technology had higher profitability than their counterparts, who adopted self-made feed technology, according to Adeyonu and Odozi [8]. The quality of readymade feed may not be as challenging to achieve and maintain as the self-made feed that is intended to be more affordable [8].…”

“…Furthermore, it plays an important role in reducing malnutrition, by providing the cheapest source of protein and promoting the nation's agricultural sector [7]. This is because broiler meat is the greatest white meat (other than rabbit, pork, and other poultry) consumed globally that has limited cultural and religious barriers, and is fairly low in fat and cheap compared to other meat products [8]. Poultry rearing offers a quick return on investment, especially for low-income smallscale farmers.…”