A COMPARATIVE PROFITABILITY ANALYSIS OF BROILER PRODUCTION SYSTEMS IN URBAN AREAS OF EDO STATE, NIGERIA

Project Abstract

<p> </p><div><br>Broiler production is carried out under different production systems and different production systems imply variations in cost of inputs and</div><div>returns. This study looked at the cost implications of raising broilers under different production systems as well as constraints faced by the farmers. The</div><div>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</div><div>October–December, 2013. A multi-stage sampling process was used to select the 211 respondents for this study. The data collected were analyzed using</div><div>descriptive statistics, profitability ratios and multiple regression models. A five point Likert scale was used to judge level of severity of the constraints</div><div>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</div><div>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</div><div>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</div><div>(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</div><div>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</div><div>RNI (N0.71) for the deep litter system. This shows that both systems were profitable in the study area. The Return per</div><div>Naira Invested (RNI) showed that for every N1 invested a return of 91 kobo and 71 kobo accrued to the farmer for battery cage</div><div>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</div><div>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</div><div>accruing to the farmers.</div> <br><p></p>

Project Overview