Economic Analysis Of Layer Productions

1.0 Introduction

One of the major challenges facing most developing countries is the satisfaction of the ever-increasing demand for calories and protein. Most African diets [Nigeria inclusive] are deficient in animal protein which result in poor and stunted growth as well as increase in spread of diseases and consequently death (Yusuf and Malomo 2007)
Animal protein sources include fish, egg, Layer meat, beef, milk, beacon, pork and mutton. They are delicious but not readily affordable. The common sources accessible to Nigeria populace are frozen fish, beef and Layer products [egg and meet]. Most farmers produce Layer especially in Kwara state Nigeria, however, the level of the productivity still remain local and small- scale.

Layer is a sub-sector in the livestock industry constituting a major component of the agricultural economy. The sector provides animal protein to the populace as well as employment for a considerable percentage of the population. According to FAO Report (2010) Layer comes fourth among sources of animal proteins for human consumption in Nigeria and contributes about 10% of the national meat production. Layer business is attractive because birds are able to adapt easily, have – high economic value – rapid generation time and – a high rate of productivity that can result in the production of meat within eight weeks and first egg within eighteen weeks of the first chick being hatched.

Okoli et al., (2004) revealed that 85% of rural families keep small ruminants and local fowls primarily as an investment and sources of manure or meat at home or for use during festivals. In spite of this, livestock production is still not keeping pace with the protein requirements of the rapidly increasing Nigeria population. Demand is more than supply. Since the responsibility of any civilized government is to provide adequate food and assure an atmosphere free from hunger and malnutrition, the Federal Government of Nigeria placed a ban on importation of frozen chicken and turkey parts to encourage massive Layer production locally [Agricultural Transformation Agenda 2012]. This policy has encouraged many investments in Layer production in Nigeria. It has therefore, becomes a full time job for many and is considered to be a commercially viable enterprise.

Considering Layer production as a commercially viable business, the knowledge of farm management demands economic measurement of profitability of such venture with the utmost aim of guiding the farmers in the appropriate use of resources/combination to maximize profit and encourage potential entrants to increase output and bridge the gap between national demand and supply of animal protein. This study is therefore analysing the economics of Layer production in Kwara state

1.2 Statement of Research Problem

In Nigeria, livestock production has not been able to keep pace with the animal protein demand. The FAO recommends that the minimum intake of protein by an average person should be 65gm per day; of this, 36gm (i.e 40%) should come from animal sources. Nigeria is presently unable to meet this requirement. The animal protein consumption in Nigeria is15gm per person per day (Tijjani et al.,2012) which is a far cry from the FAO recommendation. As a result of the above, wide spread hunger and malnutrition are evident in the country. Layer meat and egg offer considerable potential for bridging the nutritional gap in view of the fact that high yielding exotic Layer are easily adaptable to our environment and the technology of production is relatively simple with returns on investment appreciably high. Animal scientists, economists and policy makers are of the opinion that the development of the livestock industry is the only option for bridging the protein deficiency gap in Nigeria’s diets. The need to meet animal protein requirements from domestic sources demands intensification of production of meat and eggs derived from prolific animals like Layer birds

Apart from been a major source of protein in the country, Layer production has also been recognized as one of the quickest ways for a rapid generation of income. Ojo (2003) analysed cost and returns of commercial table egg production in Osun state, he reported that egg products has a mean value of N2, 158,162.53 with a net return of N1498.88 per bird. Similarly, Ibrahim et al.,(2009) in his findings revealed average net farm income of N85,558.30 with a return on capital invested of about 40%. In another report, Tijjani et al., (2012) showed that gross revenue and net farm income realised from Layer egg production in Maiduguri are N10, 5000.00 and N5, 540.00 respectively, thus, Layer egg production business was said to be highly profitable.

This study is also investigating the economics of Layer production in Kwara state with the view of encouraging prospective investors in Layer production which will not only reduce the gap between demand and supply of Layer products but will equally improves the livelihood of the people in the state.

This Study therefore provides answers to the following research questions:

What are the socio-economic characteristic of Layer producers in the study area

How profitable is the Layer production in the study area?

What are the factors contributing to the output of Layer production in the study area

1.3 Objectives of the Study

The major objective of this study is to analyze the economics of Layer production in Kwara State, Nigeria. The specific objectives are to:

Describe the socio-economic characteristics of Layer farmers in the study area.

Estimate profitability of Layer production in the study area.

Identify the factor contributing to Layer production in the study area

1.4 Justification of the Study

Layer production is commonly practiced on most farms but the profitability of such venture is questionable. This study is out to investigate the cost and returns to Layer production to enable farmer to see the advantages that Layer offers as a means of making money.

This research also aims to encourage anyone who is interested in Layer production. It result will not only show the lines likely to be most profitable, It will also point out those branches of the business not likely to be remunerative, except under special conditions.

Poverty reduction is one of the Nigeria’s policy challenges inhibiting the overall development of the country’s economy. Intensification of Layer production which has been recognized as one of the quickest ways for a rapid generation of income will go a long way to solve the problem.

1.5 Limitations of the Study

During the course of the research, many challenges are faced the major problem encountered was in the collection of data from target population due to the rumour of bird fluid disease the respondents were reluctant and do not want to be visited in their farm. The farmers do not allow farm visit which would have made the collection of data to be easy, methods like distribution of questionnaire to respondents and waiting for many days for reply was employ and also distribution through corporative society etc.