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.
Table of Contents
1. Introduction
2. Poultry feeds Production
3. Components of Poultry Diets
4. Formulation Poultry feed
5. Poultry Rations composition
5.1 Chick mash
5.2 Grower mash
5.3 Layer mash
6. Methodology
7. Results and Discussions
8. Conclusion and Recommendation
Objectives & Core Topics
This study aims to evaluate the economic viability and profitability of small-scale poultry feed milling enterprises in Akwa Ibom State, Nigeria, by analyzing production costs, revenue generation, and input-output efficiency.
- Profitability analysis of local poultry feed production
- Evaluation of cost, revenue, and benefit-cost ratios
- Investigation of feed formulation techniques and nutritional requirements
- Identification of production constraints in the poultry feed sub-sector
Excerpt from the Book
Poultry feeds Production
The poultry feed industry (broiler and layer industry) dominates the animal feed industry, and in 2000, accounted for approximately two-thirds (68.2 percent) of the national feed production. The industry comprises two sectors: the small-scale and the commercial sectors. The commercial sector manufactured nearly 1.7 million tonnes or 65.4 percent of the country's poultry feed - this included feeds offered to chickens, guinea fowls, ducks, geese and turkeys (Shaib, et al, 1997).
Some of the common techniques employed in feed formulation include: 1) The Pearson Square method, 2) Linear Programming, 3) Non Linear Programming, and 4) Trial and Error method. The Person Square Method is a simple, well established and popular method of determining the correct proportions of two feed ingredients necessary to obtain a desired level of a particular nutrient. The method is most often used for protein level determination. The method permits substitution of feed ingredients without disturbing the desired protein content of the diet. It is also used for some other nutrients level determination like amino acids in the formulated.
Summary of Chapters
Introduction: Provides an overview of the livestock and poultry industry in Nigeria and highlights the importance of locally produced feed to improve profitability for smallholder farmers.
Poultry feeds Production: Discusses the dominance of the poultry sector in the animal feed industry and introduces standard techniques for feed formulation.
Components of Poultry Diets: Details the essential nutritional requirements for poultry, including protein, energy, minerals, and the role of various feed ingredients.
Formulation Poultry feed: Explains the process of choosing key feedstuffs and computing their proportions on a percentage basis to meet specific animal requirements.
Poultry Rations composition: Describes specific feed types like Chick mash, Grower mash, and Layer mash and their respective roles in different stages of bird development.
Methodology: Outlines the research design, location, data collection methods from poultry feed processors, and the data analysis approach used in Akwa Ibom State.
Results and Discussions: Presents the findings regarding the profitability of the poultry feed enterprise, comparing production costs with market prices for commercial brands.
Conclusion and Recommendation: Summarizes the study's findings and offers policy recommendations to enhance the productivity and sustainability of the poultry feed sub-sector.
Keywords
Poultry feed, Feed milling, Profitability analysis, Akwa Ibom State, Gross Margin, Livestock industry, Feed formulation, Smallholder farmers, Production costs, Net returns, Benefit-cost ratio, Animal nutrition, Local feed resources, Poultry production, Agricultural economics
Frequently Asked Questions
What is the core focus of this research?
The research focuses on analyzing the economic profitability of poultry feed milling enterprises in Akwa Ibom State, Nigeria.
What are the central themes discussed in the work?
The study revolves around feed formulation techniques, the cost-benefit analysis of production, and the challenges faced by small-scale feed processors.
What is the primary objective of this study?
The primary goal is to determine the production cost, the return per Naira, and the overall profitability of the poultry feed mill enterprise.
Which scientific method was utilized for the analysis?
The study employed a structured questionnaire with the cost route approach and analyzed the collected data using Gross Margin Analysis.
What topics are covered in the main section?
The main sections cover the status of the poultry industry, nutrient specifications, feed formulation models, cost comparisons between local and commercial products, and recommendations for the sector.
Which keywords define this work?
Key terms include poultry feed, profitability, feed milling, gross margin, feed formulation, and smallholder farmers.
How is the profitability of the enterprise measured?
It is measured by calculating the Gross Margin and Net Returns, resulting in a Benefit-Cost Ratio (BCR) of 1.14:1.
What are the main constraints identified for poultry feed production?
The study highlights high input costs, labor costs, high asset costs for processing equipment, and lack of access to credit facilities as the major constraints.
- Arbeit zitieren
- Udeme Usanga (Autor:in), 2023, Economics of Poultry Feed Milling Enterprise in Akwa Ibom State, München, GRIN Verlag, https://www.grin.com/document/1387597
