Analysis of Profit and its Drivers in Broiler Production in Anambra State Nigeria.

Abstract

Broiler production over the years has seen movement of people in and out of the industry which has continued to interfere with forces of demand and supply. Increasing profit within the broiler industry require a good knowledge of the industry as well as being at home with factors capable of raising every naira invested in the industry which will serve as a yardstick for continuity in the industry. The study analysis of profit and its determinants in Anambra state employed the use of multistage purposive and simple random sampling technique to select 370 broiler farmers. The structured questionnaire administered to 370 broiler farmers used budgetary techniques and multiple regression analysis to ascertain the profit made as well as the factors that are significantly determined the profits realized in broiler production. The study revealed a profit of N3,647,503.36 with profitability value of 30.8% and return on investment (ROI) of 1.57, indicating that the farmers make N1.57 for every N1 invested in broiler production. The study further revealed that the coefficients of cost of day-old chick (DOC), feed cost and drug expenditure are all positive and significant at a 1% probability level. The study concludes that although there is profit in broiler production there still exist opportunities for improving on their current level of production. The study recommends cost management intervention and more training to farmers to enhance profit.