What are the Drivers of Profitability of Broiler Farms in the North-central and South-west Geo-political Zones of Nigeria?

Abstract

This study analyzed the drivers of the profitability of broiler farms in the north-central and south-west geo-political zones of Nigeria. A multi-stage sampling technique was employed to choose a representative sample. A pre-tested, structured questionnaire was employed to gather cross-sectional data from 645 respondents between November 2017 and February 2018 for 2017 production year by trained enumerators. The data were analyzed with budgetary model, descriptive and inferential statistics. The results show that feed constitute about 75% of the total variable cost of producing 1 kg of the broiler. The cost implication of producing 1 kg of broiler stood at ₦583.20, while revenue realized from the sales of the same quantity of broiler was ₦734.69. The study further revealed that broiler farming is a profitable enterprise with profitability index of 39.85%. Furthermore, the positive drivers of profitability of broiler farms are years of experience of farmers, flock size, other means of livelihood, process broiler, and membership of the poultry association of Nigeria (PAN). Types of feed used and access to credit had a negative effect on the profitability of broiler farms. There will be a need to motivate farmers to increase their flock sizes by subsidizing high-quality day-old chicks, feed, and feed ingredients as well as other facilities. Research efforts should also focus on the development of efficient locally-made processing facilities to improve on the value addition activities of farmers thereby increasing the profitability of the farms. The enforcement of the policy on credit provision to farmers at a reasonable interest rate by commercial banks becomes crucial. In addition, it is suggested that farmers be encouraged to join PAN to increase the profitability of broiler farms.