Home / Agriculture and forestry / A COMPARATIVE PROFITABILITY ANALYSIS OF BROILER PRODUCTION SYSTEMS IN URBAN AREAS OF EDO STATE, NIGERIA

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

 

Table Of Contents


Project Abstract

Abstract
Broiler production plays a significant role in the livestock industry in Nigeria, particularly in urban areas where 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 two main broiler production systems intensive system and semi-intensive system. Data was collected from 50 broiler farmers using structured questionnaires and analyzed using relevant financial metrics. The findings of the study revealed that both intensive and semi-intensive broiler production systems were profitable in the urban areas of Edo State. However, the intensive production system showed higher profitability compared to the semi-intensive system. The study identified key factors influencing the profitability of broiler production systems, including feed cost, labor cost, medication cost, and market price of broilers. Further analysis indicated that the intensive system incurred higher production costs but also generated higher revenues, resulting in increased profitability. In contrast, the semi-intensive system had lower production costs but also lower revenues, leading to comparatively lower profitability. The study highlighted the importance of efficient resource management, cost control, and market awareness in enhancing the profitability of broiler production systems. Moreover, the research emphasized the need for broiler farmers in urban areas of Edo State to adopt modern production techniques, improve feed quality, optimize production processes, and explore market opportunities to maximize profitability. The study recommended that broiler farmers consider factors such as feed conversion ratio, disease control measures, and market trends to enhance their financial performance. In conclusion, this study provided valuable insights into the comparative profitability of broiler production systems in urban areas of Edo State, Nigeria. The findings underscored the economic viability of both intensive and semi-intensive systems, with the intensive system showing higher profitability. The research outcomes can serve as a guide for policymakers, extension agents, and broiler farmers in making informed decisions to improve the financial sustainability of broiler production in urban areas.

Project Overview

Broiler production is carried out under different production systems and different production systems imply variations in cost of inputs and
returns. This study looked at the cost implications of raising broilers under different production systems as well as constraints faced by the farmers. The
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
October–December, 2013. A multi-stage sampling process was used to select the 211 respondents for this study. The data collected were analyzed using
descriptive statistics, profitability ratios and multiple regression models. A five point Likert scale was used to judge level of severity of the constraints
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
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
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
(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
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
RNI (N0.71) for the deep litter system. This shows that both systems were profitable in the study area. The Return per
Naira Invested (RNI) showed that for every N1 invested a return of 91 kobo and 71 kobo accrued to the farmer for battery cage
and deep litter systems respectively. Only three variables in the regression model were found to be statistically significant (P<0.05), these were feed
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
accruing to the farmers.

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