JOSEPH AHMADU*, OKIEMUA T. OKOROR AND COURAGE O. EHIGIATOR
Department of Agricultural Economics and Extension Services, Faculty of Agriculture, University of Benin, P.M.B. 1154, Benin City, Nigeria
The study analysed investment in poultry egg production in Edo South Agro-Ecological Zone of Nigeria. Specifically, it estimated the quantities of inputs and output, costs and returns of poultry egg production and determined its profitability and viability in the study area. A combination of simple random and snowballing sampling techniques was used to obtain data from 100 poultry farmers in the study area over three-year period (2012 – 2014). Data collected were analyzed using descriptive statistics, budgetary and viability analyses. The results showed that the farmers’ average stock size (mature layers) for the three-year production period under consideration was 2745 birds per annum while the average eggs produced was 26,636 crates per annum. By-products produced along with the eggs were spent birds, droppings and feed sacks. The cost of feed constituted the highest proportion of the total cost of production (86% on the average). The poultry egg production business in the study area was found to be profitable in all the three years with the average gross margin, net profit and return on investment per annum of N5,224,819.99 (US$26,523.28), N4,919,670.99 (US$24,974.22) and 0.34 respectively. At 31% discount factor, the benefit-cost ratio (BCR) was greater than unity (1.26), the NPV was positive (N7,024,689.92 or US$35,660.13) and the internal rate of returns was about 122%, indicating that investment in the poultry egg production enterprise was profitable and viable. Since poultry egg production was profitable and viable, the unemployed youths are encouraged to go into its production.
Keywords: Profitability, Viability, Poultry Egg, Production, Edo State, Nigeria