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Budgetary Analysis and Constraints of Small-Scale Broiler Brooding (3-4 weeks old) Enterprise in Abia State, Nigeria


C.R. Okezie
O.S. Offor

Abstract

This paper estimated the profitability analysis of brood and sell broiler enterprise in Abia State, Nigeria. Data collected using a well-structured questionnaire and interview schedules from 60 brood and sell farmers were analyzed using frequency, percentage, mean scores, and budgetary analysis techniques. The results of the study showed that the enterprise was dominated by young, married, and family-oriented males who are literates that has knowledgeable experience with an average family size of 6 persons per household. The budgetary analysis result revealed that the brood and sell broiler enterprise is economically viable and profitable in the study area with a net profit of #175,763.94 per production cycle. Benefit cost ratio (BCR) of 1.20 and return on investment (ROI) of 19.66% were recorded. The BCR of 1.20 shows that total benefits outweigh the total expenses as every #1 spent, the farm returns #1.20 in total benefit, while ROI of 19.66% implies that the brood and sell broiler enterprise generates a net gain of #19.66k for every #100 invested with variable cost made up of 94% of the total cost incurred in the brood and sell poultry enterprise. This study identified major constraints to profitable brood and sell enterprise, which include high cost of feeds, high cost of day-old chicks, limited access to credit, and loss of birds due to pollution/climate change. To reduce the cost of farm inputs, the government should provide soft loans/credit and other farm inputs to the farmers, while the farmers should form a brood and sell a broiler enterprise cooperative/association for easy access to necessary farm inputs and for self-help support. 


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print ISSN: 0300-368X