Economic Analysis Of Turkey Production

ABSTRACT

Turkey farming is the process of raising turkeys for the purpose of producing meat or eggs for food or money. Turkey, chicken, guinea fowl, duck and quail are all domestic birds that nutritionally and economically contribute to any country. The study examined the economics of turkey production in Enugu State, Nigeria. Proportionate random sampling technique was used to select one hundred and eighty seven (187) turkey producers from four Local Government Areas of Enugu. Primary data were collected using interview schedule. Data analysis was carried out using descriptive statistics, farm budgeting technique, financial analysis and Pearson product moment correlation. Results  revealed that majority (57.8%) of turkey producers  had their ages between 31-40 years, were males (78.1%) and most of them were (68.9%) were are civil servants. Similarly, majority of them (70.6%) were married and most of them (67.9%) had a household size of between 1 – 5 persons. The costs and returns structure indicated that, variable cost accounted for 73.2% of the total cost of turkey production per bird in the study area, while fixed cost accounted for the remaining 26.8%. However, the average total cost per bird was N4, 350.43, average total revenue was N6, 866.81 and net income was N2, 516.38 indicating that turkey production in the study area was profitable. Result of the correlation analysis showed that only educational level, household size and years of experience had significant positive relationships with profit in turkey production (P<0.05). In order to increase revenue generation from turkey production by those engaged in the business therefore, there is the need for them to acquire more education, more farming experience and at the same time utilize more family labour in turkey production.

TABLE OF CONTENTS

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

CHAPTER ONE

• INTRODUCTION
• BACKGROUND OF THE STUDY
• AIM AND OBJECTIVE OF THE STUDY
• SCOPE OF THE STUDY
• SIGNIFICANCE OF THE STUDY
• LIMITATION OF THE STUDY
• METHODOLOGY
• PROJECT ORGANISATION

CHAPTER TWO

LITERATURE REVIEW

• OVERVIEW OF TURKEY PRODUCTION IN NIGERIA
• ECONOMIC POTENTIALS OF TURKEY PRODUCTION
• ECONOMIC IMPORTANCE OF TURKEY PRODUCTION
• MAIN CHALLENGES FACING THE TURKEY PRODUCTION

CHAPTER THREE

METHODOLOGY

• DESCRIPTION OF THE STUDY AREA
• SAMPLING PROCEDURE AND INSTRUMENT FOR DATA COLLECTION
• ANALYTICAL TOOLS

CHAPTER FOUR

4.0      TEST AND RESULT ANALYSIS

• RESULTS AND DISCUSSION
• COSTS AND RETURNS OF TURKEY PRODUCTION

CHAPTER FIVE

• CONCLUSION
• REFERENCES

CHAPTER ONE

1.0                                                        INTRODUCTION

1.1                                           BACKGROUND OF THE STUDY

Turkey (Meleagris gallopavo) production is an aspect of the poultry industry which is not popular in Nigeria until recently (Hogan, 2008). Turkeys have been found to be of considerable economic and social significance in traditional life of Nigerians, in that they are used as presents during festivals like Christmas as sign of appreciation and expression of goodwill. So far, there is no known discriminatory attitude towards the production and consumption of turkeys (Nwagu, 2002).

Adult males have a naked, heavily carunculated (bumpy) head that is normally bright-red but that turns to white over-laid with bright blue when the bird is excited. Other distinguishing features of the common turkey are: a long red fleshy ornament (called a snood) that grows from  the forehead over the bill; a fleshy wattle growing  from the throat; a tuft of coarse, black, hairy feathers (known as a beard) projecting from the breast; and more or less prominent leg spurs. The male wild turkey (variously called gobbler, Tom or Jake – immature male), may be 50 inches long and weigh up to 22pounds, although the average weight is less. Female turkeys (Hens) generally weigh half as  much and have less warty heads. Domesticated strains of the common turkey, developed for their fine-tasting flesh, may be much heavier (Mercia et al., 2010). Bland (2009) reported that in many European as well as African countries roasted turkey has long been a customary Christmas dish. In the United States, the bird is especially associated with thanksgiving. Turkey production is seasonal, although in United States and some other countries, ready-to-cook, lean, boned turkey is available in rolls any time of the year.

1.2                                     AIM AND OBJECTIVE OF THE STUDY

This study was aimed at examining the economic analysis of turkey production in Ezeagu LGA Enugu State of Nigeria with the specific objectives of:

1. Describing the socio-economic characteristics of the turkey farmers,
2. Determining the profitability,

• Estimating production function,

1. Examining resource use efficiency and identifying the constraints to turkey production.

1.3                                                   SCOPE OF THE STUDY

Turkey occupies an important position next to chicken, duck. Guinea fowl and quail in contributing the most evolving sector, which is playing a significant role in augmenting the economic and nutritional status of varied population. They form almost two percent of the total poultry population. They are reared for meat only and its meat is the leanest among other domestic avian species. Turkeys are mostly concentrated in and around cosmopolitan cities of Nigeria in small numbers. This study is on the economic analysis of turkey production.

1.4                                           SIGNIFICANCE OF THE STUDY

This study will help to determine the extent farmers produce turkey in Nigeria. This research work will throw more light on how low income small family farms raise turkey for festival and this agricultural activity is very important for these kind of farms in rural areas.  The study will also serve as a guide to whoever that wants to go into turkey production.

1.5                                                        LIMITATION OF THE STUDY

As we all know that no human effort to achieve a set of goals goes without difficulties, certain constraints were encountered in the course of carrying out this project and they are as follows:-

Difficulty in information collection: I found it too difficult in laying hands of useful information regarding this work and this course me to visit different libraries and internet for solution.

Financial Constraint:        Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

 Time Constraint:  The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.6                                             RESEARCH METHODOLOGY

In the course of carrying this study, numerous sources were used which most of them are by visiting libraries, consulting journal and news papers and online research which Google was the major source that was used.

1.7                                     PROJECT ORGANISATION

The work is organized as follows: chapter one discuses the introductory part of the work,   chapter two presents the literature review of the study,  chapter three describes the methods applied, chapter four discusses the results of the work, chapter five summarizes the research outcomes and the recommendations.

CHAPTER TWO

2.0                                                    LITERATURE REVIEW

2.1                        OVERVIEW OF TURKEY PRODUCTION IN NIGERIA

Turkey, scientifically known as Meleagris gallopavo belongs to the family of birds called Meleagrididae. The young birds are called poults; the male birds are referred to as turkey cocks or toms while the female is called turkey hens (Ogundipe and Dafwang, 1980). Turkey is reared primarily for meat or as breeders to produce hatching eggs. They are rarely kept for the production of table eggs though the eggs are edible.

The growth of turkey industry in Nigeria has risen to 1.5- 2 million tons per year. This fast growth in the industry was made possible by intensification of production and development of large breeds with standard weights ranging from 15-17 kg for male and 8-10kg for female; some of these come from homestead, (Ogundipe and Dafwang, 1986; Ojewola, 1993)

2.2                        ECONOMIC POTENTIALS OF TURKEY PRODUCTION

According to the Federal government of Nigeria and UNICEF (1990), Turkey has no consumption problems as 116 million Nigerians are active consumers.

The growth of the Turkey industry in Nigeria has risen to 1.5- 2 million tons per year. This fast growth in the industry was made possible by the intensification of production and development of large breeds with standard weights ranging from 15-17 kg for male and 8-10kg for female; some of these come from the homestead, (Ogundipe and Dafwang, 1986; Ojewola, 1993) Turkey production in Nigeria has largely remained at the smallholder level due to various reasons ranging from management problems to lack of incentives by Government. This is the case with the soldier-farmers (Udokainyang, 2001). There is an obvious lack of information on specific requirements for turkey production in Nigeria, which may be attributed to a low level of research in Nigeria. More so, the lack of interest on turkey production was mainly due to the government policy that liberalized turkey importation since 1977. According to Thear and Fraser [1986] imported turkey formed about 60% of the total turkey in the Nigeria market, while the rest is supplied by other sources including soldiers.  Nigerians consume about 8.6g animal protein per day with turkey accounting for about 1.5g despite its great potentials in the supply of good quality animal protein and high rate of turnover of investment (Oluyemi, 1985).

Constraints

Lack of interest in turkey production was mainly due to the government policy that liberalized turkey importation since 1977. In addition to importation, a lot of the imports are from soldiers returning from peacekeeping missions in war-torn countries.

2.3                     ECONOMIC IMPORTANCE OF TURKEY PRODUCTION

A producer values the goods at the amount it costs to produce it – total cost of all the productive resources employed. If the consumer places a higher value on the goods, an exchange will take place and the producer will earn some return. Lance (2003) state that the firm making the largest profit is the one whose costs are lowest. It will have an incentive to expand production, and, if necessary, can afford to pay more of factors of production. Returns not only indicate that consumers want more of the goods; they are also the inducement to firms to produce these goods.

Ironkwe et al. (2007) advocates that turkeys are easier to manage, have relatively high turnover and quick returns to capital invested. Turkey production is a means of livelihood and a way of achieving certain level of economic independence in Nigeria. Its production is carried out in all parts of the country with no known religious,  social or cultural inhibitions associated with its consumption. The total expenditure in turkey production is generally of two categories – variable and fixed expenditures. The fixed expenditures are the costs that remained relatively constant regardless of the level of production. These costs are not used up in one production cycle. The most common fixed costs in turkey production are the costs of buildings and equipment or their depreciation, interest on loans and loan repayment, depreciation on vehicles and taxes. The variable or operating expenses are those that will be incurred only if production is carried out and the amount of this cost will depend on the kinds and quantities of inputs used. These costs components are used up in production cycle and thus must be re-incurred for each batch. Operating expenses  include cost  of birds, feed, drugs, vaccination, litter materials, heating (cost of fuel, electricity and gas), water, salaries or wages for labour, marketing cost, advertisement, etc (Ogundipe and Sanni, 2002). Ogundipe and Sanni (2002), added that the  initial costs of acquiring a poultry house will depend on the scale of operation and the type of materials used. The type and number of equipment used for poultry production also depend on the scale of production. The major equipment used in poultry production include: tray-feeders, trough feeder, hanging feeder, chick drinkers, plastic drinkers, adult size drinkers, drinker stands, kerosene stoves, buckets, shovels, bowls, brooms, nests, egg and  tray. Specifically, investment in turkey enterprise is attractive because the production cost per unit is low compared to other type of livestock. Owing to these obvious advantages of turkey production, large number of farmers both men and women venture into turkey production mostly for income generation purpose, besides meeting the protein needs of the households. Turkey production for meat and eggs is practiced by urban and peri-urban dwellers. Turkey population in Nigeria is estimated at 0.2 million (Eduvie, 2002). This is said to constitute a major animal protein source in the country.

In Nigeria, the supply of meat falls short of demand, most Nigerians are poorly fed and suffer from malnutrition due to lack of adequate protein of animal source (Ajala  and Balogun, 2004). In a nutritional profile of Nigeria, Okoruwa et al. (2006) reported that the protein supply per capita was 44g, out of which animal products constituted less than 2%. With the continued rise in the cost of production of cattle, sheep and goat, which are the primary sources of animal protein in Nigeria, it has become very necessary to explore efficient and less common but potential sources of animal protein for economic viability (Okoruwa et al., 2006).

Turkey production in Enugu State is relatively low compared to other poultry species (Broilers, Layers, Duck, Guinea fowl and Pigeon). While the sales and marketing of turkeys in the study area is carried out by residents with tHE highest sales recorded during festive periods such as Sallah, Christmas and New Year, the potentials of turkey production in the study area if properly harnessed, will increase farmer’s income, improve household food security and nutrition thereby improving their livelihood. It is in view of the importance of turkey production in the study area that this study intends to examine the economics of smallholder local turkey production in Enugu State.

2.4                  MAIN CHALLENGES FACING THE TURKEY PRODUCTION.

The modern turkey industry aims at high production and better quality at a low cost. This, in addition to an increase in the demand for poultry meat, necessitates constant, efficient and goal-oriented healthcare to prevent the development of diseases. In the future several challenges and problems, in addition to the ones already existing, will face everybody involved in the turkey production chain. These will include: strong global competition; changes in social, political and consumer perceptions in regard to food safety and animal welfare; increase of environmental protection issues; a steady increase in the cost of feed; the emergence of new and unforeseen diseases, and new legislation that will serve to regulate the related issues. The challenges facing the turkey production are discussed as below:

Strong global competition

Strong global competition and varying production costs in various regions will lead to an increase in the global movement of turkeys and poultry products. This, however, increases the risk of introducing diseases to areas that are now considered to be free from such diseases.

Turkey diseases will remain a major challenge to the industry. Once an outbreak of a given disease occurs, it can explode into an epidemic and may have a significant negative effect on trade in a specific country, a continent or even globally.

The steady increase in the cost of feed will accelerate the global trade. In addition, the increase of biofuel and biogas production will reduce the available land for food grains and feed production, leading to a considerable increase of feed costs for animal production. In the future, the feed industry, however, will also be forced to take more responsibility not only for the quality of the feed ingredients, but also to ensure that no avian pathogens and unwanted contaminants or residues are present in the feed. In addition, climatic changes and limited water resources also need to be seriously considered, as they will have an influence on the cost of production (Hafez, 2009).

Changes in social, political, and consumer perceptions – Food safety

The loss of the consumers trust and confidence in the quality and safety of poultry meat is a further challenge. Turkey meat can harbour different food borne pathogens. Many reports from recent years have shown that different Salmonella serovars and Campylobacter spp. are the most common causes of human food borne bacterial diseases linked to poultry.

In countries with intensive poultry production it has been determined that under current conditions it would be very difficult to eliminate Salmonella contamination in poultry production. However, the possibility to eliminate host specific serovars and to reduce non-host specific invasive serovars (paratyphoid) is realistic (Hafez, 1999, 2005).

In November 2003, the European Parliament Council Regulation 2160/2003/EC (EC, 2003a) on the control of salmonella and other specified food-borne zoonotic agents was passed. This regulation covers the adoption of targets for the reduction of the prevalence of specified zoonoses in animal populations at the level of primary production, including meat turkey. After the relevant control programme was approved, food business operators must have samples taken and analysed for e zoonoses and zoonotic agents. The flocks should be sampled also by the competent authority.

In June 2008 commission regulation (EC) No 584/2008 of implementing Regulation (EC) No 2160/2003 of the European Parliament and of the Council as regards a Community target for the reduction of the prevalence of S. Enteritidis and S. Typhimurium in turkeys was put into force (EC, 2008). The Community target is the reduction of both salmonella serovars to the maximum percentage of fattening and breeder flocks remaining positive to 1 % or less by 31 December 2012. The testing scheme necessary to verify progress in the achievement of the Community target is set out in the Annex of this regulation and should apply from 1st January 2010. All flocks of fattening and breeding turkeys should be investigated on the initiative of the food business operator within three weeks before the birds are moved to the slaughterhouse. In fattening turkeys at least two pairs of boot/sock swabs shall be taken. For free range flocks of turkeys, samples shall only be collected in the area inside the house. All boot/sock swabs must be pooled into one sample.

In addition, flocks of breeding turkeys should be investigated during the rearing at day-old, at four weeks of age and two weeks before moving to the laying phase: During the laying period they are to be investigated at least every third week at the holding or at the hatchery.

Sampling by the competent authority in breeding turkey flocks with at least 250 birds should be carried as follows: – once a year, all flocks on 10 % of holdings with at least 250 adult breeding turkeys between 30 and 45 weeks of age but including in any case all holdings where S. Enteritidis or S. Typhimurium was detected during the previous 12 months and all holdings with elite, great grandparents and grandparent breeding turkeys; this sampling may also take place at the hatchery,- all flocks on holdings in case of detection of S. Enteritidis or S. Typhimurium from samples taken at the hatchery by food business operators or within the frame of official controls, to investigate the origin of infection.

Sampling by the competent authority in holdings with at least 500 fattening turkeys should be carried as mentioned by breeding flocks.

Campylobacter is the leading cause of zoonotic enteric infections worldwide (EFSA, 2011). Campylobacter infections in humans are mainly transmitted by contaminated food. No evidence has been found either for vertical transmission or for horizontal transmission from one flock to the next via persistent house-contamination. However, since the organism has been detected in the intestines of most slaughtered poultry, the major route for campylobacter contamination of poultry appears to be the horizontal transmission from the environment. Investigations indicated that the external campylobacter load per chicken is increasing during transport, de-feathering and evisceration, and decreasing at the other processing steps studied, with an overall reduction of the mean load from production-to-consumption of about 4 to 5 logs. Good hygienic practice protocols should be prepared and strictly followed in all stages of production. Biosecurity should be improved throughout the production chain. Since campylobacter is found in the environment, hygienic barriers should be constructed to keep them outside the house (Anderson et al., 2003).

Controlling these food borne organisms requires beside legislations a broader understanding of how microbial pathogens enter and move through the food chain, as well as the conditions that promote or inhibit growth for each type of organism.

Changes in social, political and consumer perceptions — Antibiotic resistant and associated problems 

The development of antibiotic resistance in bacteria, which is common in both, animals and humans, is and will also be a continue to be a continuous public health hazard.

It is generally known, that supplementation of poultry feed with antibiotic growth promoters (AGPs) improves performance of livestock. The effect of AGP on gut flora results in improvement of digestion, better absorption of nutrients, and a more stable balance in the microbial population. As consequence the prevalence and severity of intestinal disorders are reduced. However, AGPs also can increase the prevalence of drug-resistant bacteria. Based on „Precautionary Principle” and experiences made in some European countries, the EU completely banned the use growth-promoting antibiotics in feed of food producing animals by January 2006. Field observations in Europe showed that the poultry industry faced several problems after the ban of AGPs. The impact of the ban has been seen on the performances (body weight and feed conversion rate) as well as on the rearing husbandry (wet litter and ammonia level), animal welfare problem (foot pad dermatitis) and general health issues on the birds (enteric disorders due to dysbacteriosis and clostridial infections). Investigations indicate that competitive exclusion, prebiotics, probiotics, enzymes, and acids can impact the incidence and severity of clostridial infections in poultry. According to Langhout (2007) these approaches will need adaptations in the feeding program and/or feed production. The practical relevance of these approaches may vary between the different areas in the world. At this moment it is difficult to evaluate novel strategies developed to antibiotic-free feeding concepts. Combination of different approaches is necessary to enhance the performance and health status of the birds such as: selection of highly digestible feed ingredients to reduce nutrients for microbial degradation; introduction of a special pre-starter diet in the feeding program; improvement of climate control in the poultry house to avoid stress in the animal and keeping litter quality in optimal condition.

Multi-resistant bacteria are increasingly posing a hazard to human and animal health worldwide, impeding successful antibacterial treatment (Arias et al., 2010). In addition, the development of novel antibiotics does not keep step with the emergence of antimicrobial resistance in bacteria (García-Rey, 2010). Increasing application of antibiotics for the treatment of humans and animals and the use of the glycopeptide avoparcin in subtherapeutic levels as a growth promoter in the past have been generally held responsible for a progressive deterioration of the resistance situation in bacteria (Aarestrup, 2005; Alanis, 2005). Among multi-resistant bacteria, vancomycin-resistant enterococci (VRE) have been estimated as one of the most common bacteria causing a rise in cases of nosocomial infections in humans in the last few years (Arias et al., 2010). The prevalence of vancomycin-resistant enterococci (VRE) in 20 turkey flocks reared in the southwest of Germany was recently investigated (Sting et al., 2013). The VRE could be isolated by means of a procedure combining bacterial cultivation in an enrichment broth and on a selective solid media. Enterococci were identified biochemically and subsequently tested on the presence of the vancomycin resistance genes vanA, vanB (B1/B2/B3), and vanC (C1/C2/C3) using real-time PCR assays. Vancomycin-resistant enterococci were detected in 15 (75%) of the 20 turkey flocks investigated. In 5 flocks, all animal samples and environmental dust samples taken were VRE-negative. In a total of cultivated 68 isolates from birds and dust samples, enterococci bearing van-genes were detected. Of these, 12 isolates carried the vanA gene (17.6%) and 56 isolates carried the vanC1 gene (82.6%). Neither vanB (B1, B2, B3) genes nor the vanC2 or vanC3 genes could be detected.

In addition, Livestock-associated methicillin-resistant Staphylococcus aureus (LA-MRSA) have been isolated from a number of livestock species and persons involved in animal production. Infections with MRSA often prove difficult and expensive to treat. During the last few years LA-MRSA have been isolated from a number of farm animal species including pigs, veal calves, dairy cattle and broilers (de Neeling, et al. 2007; Hasman et al., 2010, Persoons et al., 2009). Also turkey meat was shown to be contaminated with MRSA (de Boer et al., 2009), however, only limited information is available concerning the situation in turkey flocks with respect to prevalence, site of colonization or infection and involved strains. Recently, Richter et al. (2012) investigated the prevalence of LA-MRSA in fattening turkeys and people living on farms that house fattening turkeys. Eighteen (90%) of 20 investigated flocks were positive for MRSA. All female flocks were positive, while 8 male flocks were positive. On 12 of the farms 22 (37.3%) of 59 persons sampled were positive for MRSA. None of them showed clinical symptoms indicative of an MRSA infection. People with frequent access to the stables were more likely to be positive for MRSA. In most flocks MRSA that could be assigned to clonal complex (CC) 398 were detected. In five flocks MRSA of spa-type t002 that is not related to CC398 were identified. Moreover, other methicillin-resistant Staphylococcus spp were detected on 11 farms and in eight people working on the farms.