Factors affecting risk attitudes of small scale poultry farmers in Kogi State, Nigeria

Abstract

Small-scale farmers are risk averse in order to avoid any discomfort in their livelihoods. Hence, this study analyzed the risk attitudes and their determinants among poultry farmers in Kogi State, Nigeria. A multi stage sampling technique was used to select a total of 192 respondents in the study area on which semi-structured questionnaires were administered to extract relevant information. Data collected were analyzed using both descriptive and inferential statistics such as safety first model, ordered logit regression as well as Ordinary Least Square (OLS) regression model. The results showed that the major risks associated with poultry production were disease outbreak, lack of medication and lack of vaccination health programmes. Majority (57%) were risk averse with aggregate frequency score of 109. Furthermore, the factors influencing farmers’ risk attitude in poultry production were educational level, primary occupation, cooperative membership, marital status, labour in man days and investments. It was therefore recommended that poultry farmers need to strengthen their membership of cooperative societies so that they can have more access to veterinary services and risk sharing opportunities. The farmers need to be involved in other income generating enterprises in order to cushion the effect of production shocks inherent in poultry production.