Abstract
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.
Highlights
Agriculture remains the pillar of the Nigerian economy for growth, development, poverty alleviation, contribution to Gross Domestic Product (GDP), employment and income generation [37]
The gross margin analysis involves evaluating the efficiency of an individual enterprise so that comparison can be made between enterprises or different farm plans
Gross margin (GM) is the difference between the gross farm income (GI) and the total variable cost (TVC) that is GM = GI – TVC or Gross margin is defined as Gross Return (GR) minus Total variable cost (TVC)
Summary
Agriculture remains the pillar of the Nigerian economy for growth, development, poverty alleviation, contribution to GDP, employment and income generation [37]. It is very important amongst the most vital segments of the economy; it utilizes more than 60% of the working populace and contributes with livestock, forestry, and fisheries and in terms of real Gross Domestic Product (GDP); agriculture contributes around 42% between 2003 - 2007 and the sub sector became averagely 7.4% over the same period [17]. Livestock production constitutes a critical and basic part of the agricultural economy of Nigeria, a contribution that goes beyond direct food production incorporates the generation of employment, source of income to farmers, development of a country's economy, source of vocation to farmers and other multipurpose uses.
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