This study examined
the profitability of layers production in Esan North East and Ovia North East
L.G.A’s of Edo State. A purposive and convenient sampling of 64 poultry farmers
was carried out in the study area in order to generate data for the analysis.
Results of the study showed that the respondents were predominantly males (56%)
with good educational background and relatively long farming experience in
poultry production. Data collected were analyzed using Regression Models. The
regression results indicated that the poultry farmers were spending too much
credit on fixed capital in production from day old to spent layers with a high
probability that increase in miscellaneous expenditure and layers mash will
increase the profit from the production. It was observed that improvement in
quality of layers mash, increase in efficiency of labour and increase in KW/h used
in the production process will increase profit realizable from the production
of day-old chicks to point of lay. As shown from the regression results,
increase in fixed cost and layers mash will be necessary to maximize profit in
production from point of lay to spent layers. Viability analysis indicated that
poultry business is profitable (average BCR =1.52, average Return/Naira=0.55).
It was shown from the comparative analysis that production from day old chicks
to spent layers was the most viable (BCR of 1.64, Return/Naira=0.67) from the
three types of production. It was therefore recommended that more people,
particularly youth, should be advised to go into layers production, and that
Government should mandate commercial banks to reserve a certain percentage of
the budget for the poultry farmers at low interest rate.
TO THE STUDY
The problems of food
insecurity and hunger in recent years have continued to attract the attention
of experts and Government worldwide (Babatunde et al., 2007).
FAO (1995), asserted
that the most critical in the global food basket crises is protein, especially
of animal origin. However, Oluyemi and Roberts (2000) and Isika et al., (2006),
postulated that poultry was strategic in addressing animal protein shortage in
In Nigeria, the
production of food has not increased at the rate that can meet the increasing
population. While food production increases at the rate of 2.5%, food demand
increases at the rate of more than 3.5% due to high rate of population growth
of 2.83% (CBN, 2004).
economists and policy makers are of the opinion that the development of
livestock (poultry) industry is the only option for bridging the generally
known protein deficiency gap in a Nigerian’s diet (Mbanassor and Nwosu, 1998).
Apart from its contribution to the Gross Domestic Product and provision of
employment opportunities, poultry production (egg) is a major source of protein
in the country (Ajibefun and Daramola, 1999).
Poultry production is
predominant among livestock production in Edo State. People depend on poultry
for food and poultry farming serves as an additional occupation to supplement
the income of small and marginal farm families. Poultry occupies an essential
position because of its vast potential to bring about rapid economic growth,
particularly benefiting the weaker section (Ekunwe et al., 2006).
Egg is a rich source
of protein, lipids, vitamins, phosphorus and other nutritionally important
substances. Eggs are easily digestible and they are sources of raw materials
for agro-allied industries that utilize them in the production of food, drinks,
baking confectionery and in the propagation of viruses in vaccine production.
Besides, egg marketing provides a source of income to those who engage in it.
For Nigeria to attain
food security, there is the need for the development of all sectors of
agriculture. There is the need for significant improvements in the livestock
industry and poultry in particular. Events of the past decades indicate that
the demand and supply gap for animal protein intake is so high (Yusuf and
Malomo, 2007). Egg producers, like other producers are rational, thus, they
would increase their supply if they are sure of making higher profit ceteris
paribus (Emokaro et al., 2009). Higher profit thus ensures the sustainability
of the industry.
The research is
designed to address the following:
Are poultry farmers
in the study area really making profit from their poultry egg production?
Can these farmers
actually analyze the cost and returns from their enterprise?
What are the major
constraints faced by egg farmers in the study area?
Do poultry farmers in
the study area keep up to date records of their enterprise?
OBJECTIVE OF THE STUDY
The broad objective
of the study was to investigate the profitability of poultry egg production in
Esan North East and Ovia North East Local Government Area of Edo State.
To meet the general
objective, the study focused on the following specific objectives:
socio-economic characteristics of egg producers in the study area.
farmers’ current level of profit from egg production.
viability of egg production in Esan North and Ovia North East Local Government
constraints faced by poultry farmers in the area of study.
relationship between input used and quantity of eggs produced by respondents.
farmers’ current level of profit from day old chicks to point of lay
Ho:There is no significant
relationship between the socio-economic characteristics of the respondents and
the profitability from poultry production.
H1:There is a
significant relationship between the socio-economic characteristics of the
respondents and the profitability from poultry production.
JUSTIFICATION OF THE STUDY
Although much work
has been done in the area of profitability analyses, poultry egg production
requires a continuous research to meet the changing problems and constraints of
It is hoped that the
information provided by the study will guide prospective poultry enterprise and
contribute to effective policy formulation and implementation as regards
improving the business.