Analysis of net farm income and non-farm income of broiler farmers across different scale of production in Imo State, Nigeria

Abstract

This study analyzed net farm income and non-farm income of broiler farmers across different scale of production in Imo State, Nigeria. Capital accumulation for reinvestment and expansion remains a challenge among broiler farmers in the study area. A multi-stage sampling technique was adopted, and a total of 9 LGAs were purposively selected from the 3 zones (Orlu, Owerri and Okigwe zone). Stratified random sampling was used in selecting 26 small-scale and 9 medium-scale farmers from Owerri Agricultural zone for the study. In Orlu, 15 small-scale, 15 medium-scale and 6 large-scale of broiler farmers were selected, while 15 small-scale, 11 medium-scale and 3 large-scale broiler farmers were selected from Okigwe Zone. This gave a total of 113 broiler farmers selected from the chosen LGA's in the state. Out of 113 broiler farmers selected only a total of 100 responses were found useful for the study. Descriptive statistics, profitability ratio and net income model tools were employed for analyses in this study. The profitability result revealed that the large-scale broiler production has the highest return on naira used with 174% followed by medium-scale production with 47% return on naira used and the least was small-scale production with 33% return on naira expended. The result reveals that broiler farming in the study area is profitable and has the ability to offset its own cost, and still generate substantial return on naira used from every additional N1 spent no matter the scale of operation. The study also shows that net farm income of broiler farmers (N7,690,429.50 for small-scale, N 17,615,997.00 for medium-scale and N 142,674,200.00 for large-scale) is significantly greater than their non-farm income irrespective of scale of
operation. In an attempt to raise the net-income of broiler farmers vis-a-vis more capital to scale-up broiler production, small and medium-scale operators are encouraged to diversify their productions with other livestock enterprises like layer production enterprise, turkey production enterprise and goat production enterprise.