Analysis of Profitability of Small-Scale Brood-and-Sell (3-4 weeks old) Broiler Enterprise in Ibarapa Area of Nigeria
Publication Date: 21/10/2020
Author(s): Olufemi Adeyemi Owoade, Olatunde Seun Olarinwa.
Volume/Issue: Volume 3 , Issue 4 (2020)
Abstract:
Generally, the willingness to engage in an enterprise developed once the profit incentive was acknowledged as without profits the enterprise is unsustainable and will either collapse or become dependent on external intervention. On this premises, profitability of brood-and-sell broiler enterprise was carried out in Ibarapa area of Oyo state, Nigeria. Data collected using structured questionnaire and interview schedules from 40 brood-and-sell poultry farmers were analyzed using budgetary analysis technique and descriptive statistics. Budgetary analysis revealed that the enterprise was profitable and gives a return of 28 kobo on every 100 kobo invested with variable cost made up of 96.30% of cost of production. The paper identified important hindrances to maximization of profit to include high cost of quality feeds and healthy day-old chicks and limited access to veterinary services. The paper concluded that profitability of the enterprise depends on the managerial ability of the enterpriser to control variable cost- feed and day-old chicks. To improve profitability and ensure sustainability of the enterprise it was recommended that there must be improved access to credit, veterinary services and investment in rural infrastructure of road and electricity in the area.
Keywords:
Brood-and-Sell, Net Return, Protein, Enterpriser, Output, Broiler Enterprise
