COST AND RETURN STRUCTURE IN POULTRY EGG PRODUCTION IN OSUN STATE, NIGERIA

Abstract

This study was carried out among poultry egg farmers in Osun State, Nigeria. Data were randomly collected by the use of structured questionnaires for interview schedule from One hundred and five (105) poultry egg farmers using proportional random sampling techniques. Description statistics and budgetary techniques were used to analyzed the data obtained for the study. Results of the descriptive statistics analysis showed that 71.4% of poultry egg farmers had a mean age of 46.5 years which revealed that they are in their economically active age, 81.9% of whom were mainly males, 87% of them were formally educated, with a mean household size 5 members. Poultry egg production in the study area was profitable, showing profitability index for the large-scale, medium-scale and small-scale production per bird as 0.41, 0.37 and 0.40; internal rate of return on investment (IRR) was 68.4%, 59.7% and 66.1%; and operating ratio (OR) of 0.58; 0.41 and 0.59 respectively.. The study therefore recommended that poultry egg farmers should give attention to feed cost reduction and effective management practices (specifically use of battery cage) to maximize profit in poultry egg farming. In addition, farmers should also consider patronizing cooperative funds as an alternative investment/ management funds, and consider using locally compounded feeds to raise their stocks to reduce overall production costs. Government in its own part should consider giving subsidy on agricultural facilities and make sure that disbursing partners adhere to official regulations in interest rate and loan requirements.