AKSU Journal of Agricultural Economics, Extension and Rural Development
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
Abstract
The study analyzed the costs and returns of broiler and layer enterprises in the Uyo Agricultural Zone,
Akwa Ibom State, Nigeria. Both primary and secondary data were used for the study. A structured
questionnaire was employed to obtain information from sixty (60) broiler farmers and forty (40) layer
farmers. Specifically, the study assessed the socio-economic characteristics of broiler and layer farmers
in the study area, determined the gross margin of the enterprises, estimated the benefit-cost ratio and
returns on investment for broiler and layer enterprises, and offered recommendations. Descriptive
statistics, budget analysis, and business performance indicators such as Benefit-Cost Ratio (BCR) and
Returns on Investment (ROI) were used to analyze the data. The results of the study showed that in broiler
production, the average stock per batch was 860, while the average stock for layers per batch was 799
birds feed cost (₦3,580,00.00) was found to be the major variable cost indicating about 65.82% of the
total cost of production in the broiler enterprise. For the layer enterprise in one production cycle the
average feed cost was found to be ₦23,842,007.00, indicating 64.50% of the total cost of production. The
gross margin for broiler production per batch was ₦2,800,815.20 with a benefit-cost ratio of 1.51 and a
return on investment of 51%, while the gross margin for layer production was ₦17,233,940.50, with a
benefit-cost ratio of 1.47 and a return on investment of 47%. The study therefore concludes that both
enterprises had a positive gross margin but the returns on investment were higher in broiler production
than in layer production and recommends that farmers should be advised to focus more on the production
of broilers, as it has a higher return on investment than layers. Additionally, farmers should explore
alternative sources and cheaper methods of producing feed to reduce feed costs.