Comparative analysis of commercial and self-composed feed usage among broiler chicken enterprises in South-South, Nigeria

Abstract

This study examined the profitability of Commercial Feed (CF) and Self-Composed feed (SCF) usage among broiler producers in Edo State.  The specific objectives were; to determine the Gross Margins (GM), the Net Returns (NR), the Return on Investments (RoIs), and  compare the costs of feed, and the margins of the two groups. Purposive and random sampling techniques were employed in the  selection of 15 broiler farmers from each category for questionnaire administration. The data were analyzed using budgetary analysis  (based on one kg of broiler meat) and test of mean difference. The SCF users incurred lower cost of feed but recorded higher costs on all  other inputs as well as a higher mortality rate. The ATVC for the CF (N829.9) was however higher than that of the SF (N818.1). The GM was  N370.1 for the CF users and N381.8 for SFC users. Similarly, the respective net returns were N349.4 and N358.9. Furthermore, the  respective RoIs were 1.41 and 1.43. Although, the cost of feed per kg of broiler meat was lower (by N47.2) for the SCF users, the tests of  mean difference failed to reveal a significantly lower cost of feed for SCF users (t=1.00 α=0.16). Likewise, no statistical evidence was found  to reject the null hypothesis of no difference in profit margins in favour of the SCF (difference=N11.7, t=0.30, α=0.76). Thus, it makes no  difference the feed acquisition strategy employed by the broiler famers in the area. It is however pertinent to note that improved health practices that will lead to reduction in mortality and medication cost will complement the SCF strategy, and elicit higher profits. More  research is also needed in this area of study to accommodate more farmers.