Economic Analysis of Broiler Production in Lagos State Poultry Estate, Nigeria
Journal of Investment and Management
Volume 7, Issue 1, February 2018, Pages: 35-44
Received: Feb. 15, 2018; Accepted: Mar. 16, 2018; Published: Apr. 9, 2018
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Omolayo Joshua Olorunwa, Department of Agricultural Economics and Extension, Landmark University, Omu-Aran, Nigeria
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The study on the economic analysis of broiler production was carried out in Lagos State Ministry of Agriculture and Cooperative’ Poultry Estates, Nigeria. A two-stage sampling technique was employed for the selection of 100 out of 193 broiler farmers. The research findings revealed a male dominance (73%) in broiler production and an average age of 45 years within the range of 40 and 49. Also, majority of the broiler farmers (90%) were fully involved in broiler production, married (80%) and literate (90%), with an average farming experience of less than 9 years (81%), average household size of 4 persons (78%) and an average flock size of about 400 birds. It was found that over 80% of the cost of production was on the variable inputs while feeds constituted the highest percentage of the variable costs. This accounted for 54.86% of variable costs and 44.8% of the total costs. The result of the findings showed that a single broiler bird nurtured to maturity had a total cost of ₦1509.8 made up of ₦274.2 as fixed cost and ₦1235.6 as variable cost. The gross revenue per bird was ₦2169.99. The Net profit of ₦660.11 per bird was estimated and this gives a net margin-to-cost ratio of 0.44 which implies that a ₦1 investment in broiler production, all things being equal, would yield 44kobo in return. This indicates that the broiler in poultry estate were profitable. The maximum likelihood estimate of the stochastic frontier production function reveals that quantity of feeds and flock size were highly significant at 5% and 1% risk level respectively. Educational level of farmers and years of experience were the factors positively influencing the technical efficiency of broiler production in the study area. The estimated technical efficiency of the broiler farmers ranged from 57% to 96% with a mean technical efficiency of 74%. Disease outbreak, inadequate finance and high cost of feed were the serious problems faced by the farmers. It was therefore recommended that broiler farmers should increase their flock size, develop the skills of record keeping and feed formulation to reduce feed cost.
Broiler Production, Profitability, Technical Efficiency, Cobb-Douglas Stochastic Production Frontier Function, Lagos State, Poultry Estate, Nigeria
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Omolayo Joshua Olorunwa, Economic Analysis of Broiler Production in Lagos State Poultry Estate, Nigeria, Journal of Investment and Management. Vol. 7, No. 1, 2018, pp. 35-44. doi: 10.11648/j.jim.20180701.15
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