Profitability of Poultry Egg Farming in Rivers State, Nigeria

Year 2024, Volume: 38 Issue: 3, 524 - 532, 16.12.2024

Adeyinka Richard Aroyehun

Abstract

Profit maximization which is one of the major objectives of business ventures is obviously and largely dependent on how proficient productive resources specially finance is utilized. In the light of this, this study was carried out to determine the profitability of poultry egg farmers in Rivers State, Nigeria. Primary data were obtained with the aid of questionnaire and interview schedules from a cross section survey of 120 farmers drawn through multistage sampling procedure. Descriptive statistics, ordinary least squares (OLS) regression model and cost and returns analysis were employed to analyze data obtained. The results of the analysis showed that majority (60.8%) of the poultry egg farmers are males with 82.5% of them married. The average age was 44.69 years with about 38.3% of them took poultry egg farming as their primary occupation. The study showed that stock size, labour cost and feed cost were statistically significant at 1% in profitability of the enterprise. The study revealed that the poultry egg production enterprise is profitable in the study area as indicated by the gross margin of ₦33,390,950.00 and a net income of ₦28,290,950.00per month with all the respondents selected. The profitability ratios further reveal that for every ₦1 invested in the enterprise, a farmer earns ₦0.37 gross margin and ₦0.34 net income which are higher than the commercial interest rate of 21%. The study recommended among others; extension agents should aim at raising knowledge of poultry farmers in effective utilization of financial resource in order to improve profitability.

Keywords

Poultry egg, Cost and return, Profitability ratios, Assessment

Thanks

Thanks in anticipation of the Reviewers comments

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