Impact of Fecal Waste Management on the Profitability of Poultry Farmers in Nigeria
Keywords:
Delta State, Gross Margin, Profit Efficiency, Profitability Index, Stochastic Frontier AnalysisAbstract
The observation that there is far more quantity of poultry waste than can be managed by land disposal being produced yearly suggests the obvious problem of poultry waste management. This scenario offers great opportunities for organic farming and bio-energy generation in Nigeria. Hence, this study examined the economic contribution of fecal waste to the profitability of poultry farmers in Delta State, Nigeria. A multi-stage sampling process was used to select the 123 poultry farmers for this study. The data collected were analyzed using descriptive statistics, profitability ratios and the Stochastic Frontier Profit Function model. The Gross Margin analysis gave a value of ₦5,771,437.10 and a Net Farm Income of ₦1,960.18 per bird. The profitability ratios showed a Profitability Index of 0.86, a Rate of Return on Investment of about 19.25%, and a Return per Naira Invested (RNI) of ₦0.23. From the Stochastic Frontier Profit Function analysis, veterinary cost and cost of labor for fecal waste management had a significant positive effect on profit efficiency. The cost of birds and depreciation on fixed input had a significant negative effect on profit efficiency. Age and cooperative membership of layer farmers were significant socioeconomic factors positively influencing profit inefficiency. While education and household size were shown to negatively influence profit inefficiency. It was therefore concluded that farmers should focus on improved quality feed either self-compounded or purchased and better emolument for their workers as these positively influenced their profit. They should also be enlightened on the huge benefit of fecal wastes-to-biogas-electricity technology.