International Journal of Small and Medium Enterprises and Business Sustainability
Vol. 9 No. 3 (2024): November

Profitability and Efficiency of Poultry Business in Ogun State, Nigeria

Adewunmi Idowu (Unknown)
Deborah Olude (Department of Agricultural Economics and Farm Management, Obafemi Awolowo University, Ile-Ife, Nigeria)
Mojisola Kehinde (Department of Agricultural Economics and Extension, Landmark University Omu-Aran, Kwara State, Nigeria)
Maria Ogunnaike (Olabisi Onabanjo University Ago Iwoye)
Christopher Ologbon (Department of Cooperatives and Rural Development, Faculty of Administration and Management Sciences, Olabisi Onabanjo University Ago-Iwoye, Ogun State, Nigeria)
Olumayowa Oyebanjo (Department of Agricultural Economics and Farm Management, College of Agricultural Sciences, Olabisi Onabanjo University, Ayetoro Campus, Ogun State, Nigeria)



Article Info

Publish Date
30 Apr 2025

Abstract

This study investigates the effect of poultry farm efficiency on its profitability level in ogun state, Nigeria. The study drew a sample of 300 poultry farms through a multistage sampling technique from four agricultural zones in Ogun State and data were analysed using parametric frontier approach, budgetary analysis, profitability indices and Tobit model.Results indicates that mean age, years of formal education and poultry farm experience were 47.3 years, 17 years, and 7.9 years respectively. The mean efficiency estimates for technical, allocative, and economic efficiency were 0.95, 0.12 and 0.11 respectively while age and poultry farms experience significantly reduced cost inefficiency. The average gross margin and net income were found to be 76,470.92 (USD 250.07) and 76,176.65 (USD 249.11) while average farm profitability index (0.29), rate of return on investment (43.22), rate of return on variable cost (143.78) and operating (0.71) indicated that poultry business is profitable in Ogun State.Increase in technical efficiency significantly increase the tendency of poultry farms making more profit.Implications were drawn for increased production scale and cooperate establishment of feed mill by poultry farmers

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Journal Info

Abbrev

ijsmebs

Publisher

Subject

Economics, Econometrics & Finance

Description

Welcome to the International Journal of Small and Medium Enterprises and Business Sustainability published by the Publishing Lembaga Penerbit Fakultas Ekonomi dan Bisnis (LPFEB) Universitas Trisakti. As its primary objective, this double-blind review and online scientific journal is dedicated to ...