A Comparative Analysis of Profitability of Broiler Production Systems in Urban Areas of Edo State, Nigeria

Abstract

This study investigated the cost implications of raising broilers under the battery cage and deep litter system of poultry production. The data used in the study were obtained from a cross-sectional survey of broiler farmers in Edo State from October– December, 2013. A multi-stage sampling process was used to select the 211 respondents for this study. The data collected were analyzed using descriptive statistics and profitability ratios. The study showed that the mean age of farmers that adopted the battery cage system was 48 years and 46 years for the farmers that used deep litter system. The Gross Margin analysis gave a value of  ₦2,422.24 and a Net Farm Income (NFI) of  ₦2,412.40 per bird for battery cage system while the deep litter system had a gross margin of  ₦1,601.77 and NFI of  ₦1,593.80 per bird. The profitability ratios showed Rate of Return on Investment (RRI) of about 92%, Return on Labour (RL) of  ₦18.03, Return on Feed (RF)of  ₦144.22 and Return Per Naira Invested (RNI) of  ₦0.91 for the battery cage system as against RRI (71%), RL ( ₦30.28), RF ( ₦117.95) and RNI ( ₦0.71) for the deep litter system. This shows that both systems were profitable and viable in the study area. It was therefore concluded that farmers should be enlightened on the relative profitability/viability of the battery cage system of broiler production over the deep litter system in the study area, as a guide to future investment in the enterprise.

Keywords: Battery cage, Cost, Deep litter, Net Farm Income, Viability