Economics of Poultry Feed Milling Enterprise in Akwa Ibom State

Abstract or Introduction

Formulated feeds account for the major operating costs in the semi-intensive and intensive pig and poultry (monogastrics) industry. These costs may account for as much as 60 - 80 % of total production cost. Although the production of conventional livestock has risen steadily over recent years, a major constraint to its expansion is an inadequate feed supply. The poor quality of the feeds currently available to the market generate high mortalities, stimulates low productivity of livestock and as a consequence, produces a low rate of return on investment (ROI) to farmers. An efficient feedmill industry is therefore crucial to the sustainability of viable livestock and poultry production enterprises. Poultry feeds account for over two-thirds of all the manufactured animal feeds; therefore, any attempt at studying efficient allocation of resources and measuring profitability on the farm level represents an important source of achieving the supply of animal protein to the teeming population and growth in the economy. This study was conducted in Akwa Ibom State to analyze the profitability of poultry feed mill enterprise. Data were collected from 50 respondents in ten (10) Local Government Areas of the state, using simple random technique between January and June 2013 with a well-structured questionnaire. The data were analyzed using Gross Margin Analysis. It was found that the feed milling enterprise is profitable with a Gross Margin of N102, 186. 50 and a Net Returns of N60, 272.67. The Benefit Cost Ratio (BCR), was 1.14:1 The results also revealed that high cost of inputs, high cost of labour, high cost of assets (processing equipment) and lack of access to credit facilities, were the major constraints affecting poultry feed production in the area.