ABSTRACT
Considering poultry production as a commercially viable business, the knowledge of farm management demands a comparative analysis to measure the profitability of such venture, with the utmost aim of guiding investment decisions in choosing the appropriate enterprise to venture into (between broiler and layer production), to effectively utilise available resources with the sole purpose of maximizing profit. Thus, this study investigated the cost and returns of broiler and layer enterprises in Egor and Oredo Local Government Areas of Edo State, Nigeria. It also compared their benefit cost ratio and return per Naira invested to determine their profitability and returns.
A multistage sampling procedure was employed in selecting respondents for the study. Primary data were collected from 120 poultry farms, comprising 55 broiler farms and 65 layer farms from Egor and Oredo Local Government Areas in Edo State using a structured questionnaire. The data were analysed using descriptive statistics, budgetary techniques and investment tools.
Result showed that personal saving was the major source of funding among the broiler farmers compared to the layer enterprises. The budgetary analysis showed that the gross margin of the farmers was ₦2372.30 and ₦968.13 for broiler and layer enterprises, respectively. Investment analysis indicated that the broiler enterprise had a higher benefit cost ratio (BCR) and the return per Naira invested (R/₦) of 1.39 and ₦0.40, respectively. In contrast, the layer enterprise had lower BCR and R/₦ values of 1.21 and 0.22, respectively. The study concluded that the small-scale broiler enterprise was found to be more economically profitable compared to the small-scale layer enterprise with higher benefit cost ratio (BCR) and return per naira invested (R/₦) values in Egor and Oredo Local Government Areas of Edo State, Nigeria. In conclusion, broiler production enterprises were found to be more profitable than layer production. The reason for this is that, a broiler farmer who is consistent in producing broilers would recoup his production five times in a complete layer production cycle.
