A comparative profitability analysis of broiler production systems in urban areas of edo state, nigeria

Project Abstract

Broiler production is a vital component of the livestock industry in Nigeria, particularly in urban areas where the demand for poultry products is high. This study aimed to conduct a comparative profitability analysis of broiler production systems in urban areas of Edo State, Nigeria. The research focused on assessing the financial performance of three different broiler production systems intensive system, semi-intensive system, and extensive system. Data was collected from 50 broiler farmers using a structured questionnaire and analyzed using descriptive statistics and profitability indicators such as net farm income, return on investment, and cost-benefit ratio. The findings revealed that the intensive system had the highest average net farm income per cycle, followed by the semi-intensive system, and then the extensive system. However, the extensive system had the lowest production costs compared to the other systems. In terms of profitability indicators, the intensive system had the highest return on investment and cost-benefit ratio, indicating better financial performance compared to the semi-intensive and extensive systems. The semi-intensive system also showed favorable profitability indicators, although lower than the intensive system. The extensive system, despite having lower production costs, had the lowest return on investment and cost-benefit ratio, suggesting lower profitability compared to the other systems. Factors such as feed cost, labor cost, and initial capital investment significantly influenced the profitability of broiler production systems. The study highlights the importance of efficient resource utilization and management practices to improve the profitability of broiler farming in urban areas. Overall, the findings suggest that the intensive system is the most profitable among the three production systems analyzed. However, the semi-intensive system also presents a viable option for broiler farmers looking for a balance between profitability and production costs. The extensive system, while having lower production costs, may require additional strategies to enhance profitability. This research provides valuable insights for broiler farmers, policymakers, and stakeholders to make informed decisions regarding broiler production systems in urban areas of Edo State, Nigeria.

Project Overview

<p> </p><p>Broiler production is carried out under different production systems and different production systems imply variations in cost of inputs and</p><p>returns. This study looked at the cost implications of raising broilers under different production systems as well as constraints faced by the farmers. The</p><p>study was conducted in Edo State of Nigeria. The data used in the study were obtained from a cross-sectional survey of broiler farmers in the State from</p><p>October–December, 2013. A multi-stage sampling process was used to select the 211 respondents for this study. The data collected were analyzed using</p><p>descriptive statistics, profitability ratios and multiple regression models. A five point Likert scale was used to judge level of severity of the constraints</p><p>faced by the farmers. The study showed that the mean age of farmers that adopted the battery cage systemwas 48 years and 46 years for the farmers that</p><p>used deep litter system. The Gross Margin analysis gave a value of N2,422.24 and a Net Farm Income (NFI) of N2,412.40 per bird for battery cage system</p><p>while the deep litter system had a gross margin of N1,601.77 and NFI of N1,593.80 per bird. The profitability ratios showed Rate of Return on Investment RRI</p><p>(91.69%), Return on Labour RL (N18.03), Return on Feed RF (N144.22) and Return Per Naira invested RNI (N0.91) for the battery</p><p>cage system as against Rate of Return on Investment RRI (70.74%), Return on Labour RL (N30.28), Return on Feed RF (N117.95), and Return Per Naira Invested</p><p>RNI (N0.71) for the deep litter system. This shows that both systems were profitable in the study area. The Return per</p><p>Naira Invested (RNI) showed that for every N1 invested a return of 91 kobo and 71 kobo accrued to the farmer for battery cage</p><p>and deep litter systems respectively. Only three variables in the regression model were found to be statistically significant (P&lt;0.05), these were feed</p><p>cost, electricity, and purchase cost of day old chick for both the battery cage and deep littersystems. Feed cost was the major determinants of revenue</p><p>accruing to the farmers.</p> <br><p></p>