Production performance and profitability analysis of small scale layer projects supported through CASP in Germiston region, Gauteng province

Abstract

The purpose of this study was to conduct a descriptive survey to study production performance, profitability and constraints of small scale layer projects funded through CASP in Germiston Region, Gauteng Province. Data was collected using a well-structured questionnaire from 26 small scale layer producers using purposive sampling technique. To assess the reliability of the questionnaire, Cronbach's alpha was used. The data were analyzed using descriptive and inferential statistics such as extent of mean, standard deviation, coefficient of variation and correlation analysis. Gross margin analysis was used to determine the profitability. The constraints were analysed using the Likert scale technique. The result of the study reveals that the average flock size kept by farmers was 587 layers and mortality rate was 4%. Hen-day egg production on average was 80%. High cost of feed, access to funding and cost of pullets were amongst constraints associated with egg production in the study area. The total revenue, total variable cost and gross margin were R265.37, R342.98 and R77.61, respectively per bird. In conclusion it was found that egg production was profitable in the study area. The study recommended that farmers should be assisted with economic unit structures and supporting structure should be in place for technical advices through agricultural extension.

Key words: egg production, profitability, CASP, Extension support