Gross margin analysis of three production modules of broiler enterprise in Obubra local government area of Cross River state Nigeria

Abstract

A research was carried out to determine the cost and returns associated with each of three modules of a broiler enterprise. Conventionally, broiler production involves two phases in a cycle, namely: a starter phase from day-one to week four (0-4 weeks of age) and a finisher phase from week four to week eight (4- 8 weeks of age). Three production modules were used as treatments which include: Module one = (production of finisher broilers 0-4 weeks). Module two= (production of market weights broilers 4-8 weeks). Module three = (full cycle production of market weights broilers 0-8 weeks) which served as the control. One hundred and forty four (144) day- old broiler chicks were assigned to each treatment in a completely randomized design. The birds were brooded in deep litter pens using conventional method of brooding broilers. The research was conducted at the Poultry Unit of the Teaching and Research Farm of Cross University of Technology, Obubra Campus Nigeria. Gross margin analysis and returns on investment (ri) were used to determine the profitability of the production modules. The gross margin (profit) was highest for the birds sold at 8 weeks of age but the number of batches produced per year was higher for the four weeks production modules (0 – 4 weeks and 4 – 8 weeks) than the full-cycle production module (0 – 8 weeks). The four weeks production modules had seven (7) batches of production per year, while the full cycle production module (0 – 8 weeks had four (4) batches of production per year. The four week broiler production modules provided quick return to investment and vaccinated broilers to farmers, thereby increasing survivability of the chicks.

Keywords: Modules, cost, finisher, gross margin, broiler