Profitability analysis of broiler production in Oyibo Local Government Area of River State, Nigeria

Abstract

This study analysed the profitability of broiler production in five communities in Oyibo Local Government Area, Rivers State, Nigeria. These communities include Oyibo East, Oyibo West, Afam, Owaza and Amaeka. Twenty poultry farmers were randomly selected from each study area giving a total of 100 sample farmers for the study. Data were collected through a structured interview schedule and questionnaire. They were analysed by descriptive statistics, gross margin and return-to-management analysis. It is concluded that broiler production as part of a poultry investment or as a whole business venture is profitable. The results revealed that the investment after six months yielded a net profit of 100% (Naira 2,000,000). The net profit had a positive value because the birds grew to heavy weights over a short period of time, thereby attracting high prices in return. These are clear indications that broiler production is a viable venture. The constraints to broiler production are high cost of breeding stock (day old broiler chicks), high cost of feed, disease outbreak, unavailability and high cost of drugs and veterinary personnel, lack of capital, and poor housing and equipment. Investment in broiler production is therefore recommended as this will boost quick animal protein production and improved nutritional status of many Nigerians. It will also provide economic empowerment and poverty reduction.