Efficiency of indigenous poultry feed production enterprises in Yewa division Ogun state, Nigeria
Akerele EO, Yangomodu OD, Solana OI, Ogungbayi GB
The research work was undertaken to analyze the efficiency of indigenous poultry feed production among poultry feed owners in Yewa Division of Ogun State. A total number of twenty structured questionnaire were administered on poultry feed farmers using the purposive sampling techniques. Descriptive budgetary and regression analytical method were used to analyze the primary data collected. The study confirmed that the age of most farmers in the study area fell between 40-49 and majority (90.0%) of the sampled farmers were males, and 60.0% of the respondents had formal education up to tertiary level. The study showed that 95.0% of the poultry feed farms were owned by individuals which implies that majority falls under one-man business and thus bear the risk and benefit alone. The result of budgetary analysis showed that the Total Variable Cost incurred was N3,535,608.91 and the Total Fixed Cost was N2,880,431.42 which sums up to the Total Cost of N6,416,040.33. The Total Revenue was N10,208,367.80 with a Gross Margin of N6,672,758.89 and Net Farm Income of N3,792,327.46. The profitability ratio was 1.306 while the Operating Ratio was 0.346. The result of regression analysis showed that the amount of raw material and labour determine the production efficiency of indigenous poultry feed production at 10% and 1% level of significance respectively. Also, year of experience cost of raw materials and operation expenses also influence production inefficiencies at 5%, 1% and 5% respectively. Unstable power supply, excess market supply and spoilage, inadequate fund and capital were the major production constraints faced by the poultry farmers in the study area. In view of the result of the finding and the identified production constraints, since the feed farmers are faced with inadequate fund, credit facilities should be readily made available by micro-credit agencies to poultry feed farmers.