African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6691

Full Length Research Paper

Financial analysis of poultry production in Kwara State, Nigeria

T. M. Yusuf
  • T. M. Yusuf
  • Department of Agricultural Economics and Extension Services, College of Agriculture, Kwara State University, Malete, Nigeria.
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S. A. Tiamiyu
  • S. A. Tiamiyu
  • Department of Agricultural Economics and Extension Services, Ibrahim Badamasi Babangida University Lapai, Niger State, Nigeria.
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R. O. Aliu
  • R. O. Aliu
  • Department of Agricultural Economics and Extension Services, College of Agriculture, Kwara State University, Malete, Nigeria.
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  •  Received: 26 November 2015
  •  Accepted: 27 January 2016
  •  Published: 25 February 2016

Abstract

This study examined the economics of poultry production in Kwara State, Nigeria using budgetary and profit index analysis. Primary data were collected through a set of structured questionnaire from 80 registered poultry farmers using a systematic random sampling technique. The results of the study showed that 72.5% of the respondents were youth with the mean age of 38.7 years and 63.8% choose poultry farming as main occupation. Analysis of costs and returns revealed that poultry production is profitable in the study area. The gross income and net income for eggs production were found to be ₦4,062,422 and ₦1,255,965, respectively, while the gross and net incomes for broilers production were ₦1,683,209 and ₦499,187, respectively. The regression analysis showed that stock capacity, variable, and fixed costs including labour, feed, and equipment were the significant factors affecting poultry farm business in the study area. These costs increase as the size of the business increases. To achieve optimum output and maximise profit, poultry producers in the study area would have to stem down cost of production. Provision of technical education through extension agents would greatly help in achieving this lofty goal.

Key word:  Poultry production, budgetary analysis, benefit cost ratio, regression analysis.