Economics of Small-Scale Broiler Production under Fadama III Project in Dutse Local Government Area, Jigawa State, Nigeria

Abstract

The research was conducted to examine the economic viability of broiler production enterprise under Fadama III project scheme, with a view of economic diversification and investment opportunities in Dutse Local Government Area, Jigawa State. In pursuance of this objective, 50 registered broiler farmers were selected through stratified sampling technique in three council wards (Kudai, Modobi and Limawa) of Dutse LGA. Data collection was achieved through face to face questionnaire guided interview. Data were then analyzed using profitability and regression analyses. The profitability indices depict that variable cost accounted for about 54% of the total cost with the cost of feed representing 21% of variable cost. Nevertheless, a gross return of ₦198,170.00 and a net return of ₦23,545 were realized on the average, showing that every ₦1 invested returned ₦1.13, which proved that the enterprise is a profitable venture with promising returns on investment. The estimates of regression analysis show that day old chick, water supply, and labour were the most significant determinants of profitability margin of broiler enterprise in the area. Resource use efficiency reflected overutilization of labor, veterinary services and water while feed and day-old chicks were underutilized. It is recommended that increased stocking rate, reduced use of labour and reliance on the use of local materials for pen construction can greatly minimize cost of production.