Costs-Returns Analysis of Small Ruminant (Sheep) Production in Three Selected Villages in Bekwarra Local Government Area, Cross River State, Nigeria

Abstract

This study examined costs-returns analysis of small ruminant (sheep) production in three selected villages(Ugboro, Ibiaragidi and Beten) in Bekwarra Local Government Area, Cross River State, Nigeria. Data were obtained from a random sample of 120 respondents in the study area by means of structured questionnaire. Data collected were analyzed using descriptive statistics and costs-returns analysis. Results from the analysis revealed that a net returns of N1,942,400.00 was realized with N 33.72 made on every naira invested. Sheep production is a profitable farming business, with attractive net return on investment. This study also shows that sheep farmers are faced with several problems in their production activities. These problems or constraints negatively affect the efficiency of sheep production in the study area. Notable among them are high cost of transportation, lack of capital, inaccessibility of formal credit source, lack of extension agents, lack of price information, poor market infrastructures, inaccessibility of formal credit source because high interest rate and lack of roads maintenance occupied 15%, 14.17%, 11.67%, 10%, 9.17%, 9.17%, 9.17% and 8.33% respectively. Hence, for efficient production of sheep in the study area, these constraints must be drastically reduced to the barest minimum. This can be done through efficient policy formulation and implementation, proper supervision of sheep production programme, effective extension services and proper agricultural financing. The constraints associated with the production as highlighted in this paper if tackled could pave a way to increase production and income and this will alleviate poverty in Bekwarra Local Government Area, Cross River State. However, based on the findings of the study it is recommended that sheep farmers in the study area should form cooperative group(s) in order to obtain loans from bank(s) to increase their capital base for higher output.