Economics of Broiler
AN ECONOMIC ANALYSIS OF BROILER PRODUCTION PROJECT IN G.G.S.S GIWA, KADUNA STATE. Poultry is an integral part of livestock production in that it offers the highest turnover rate and the quickest returns to investment outlay in the livestock enterprises. Funds invested in poultry production are recovered faster than in any other livestock enterprise. In Nigeria, Broiler production has been found to be a major source of revenue to farmers considering the fact that four to five turnovers are possible in a year depending on the objective and management expertise of the poultry farmer.
The rationale for looking into the economics of the broiler production project is to ensure that scarce resources are used to derive optimum benefit. It must however be noted that the main objective of the project is to educate the students and to stir up their interest in practical agriculture. Hence, this analysis may not reflect a true economic analysis since the management was done by the students with little supervision by corps members in the programme. Prior to the commencement of the project, the students were taken through the rudiments of broiler production with series of lectures.
PRODUCTION COSTS ANALYSIS
The model used in calculating and estimating the Net Farm Income can be represented using the equation below:
NFI = ΣPyi Yi ˗ ΣPxi Xj + ΣFk i=1 j=1 k=1
Where:
NFI = Net Farm Income
Yi = Enterprise’s product(s) (where i=1,2,3,……n products)
Pyi = Unit price of the product(s)
Xj = Quantity of the variable input (where j=1,2,3,…… m variable inputs)
Pxj = Price/ unit of variable input
Fk = Cost of fixed inputs (where k= 1,2,3,…….k fixed inputs)
Σ = Summation/addition sign Using the above model, the project was analysed for economic viability (0-8 weeks). The expenses incurred in the project were of two category and they are variable costs and the fixed costs. The fixed costs is the costs incurred on fixed
The rationale for looking into the economics of the broiler production project is to ensure that scarce resources are used to derive optimum benefit. It must however be noted that the main objective of the project is to educate the students and to stir up their interest in practical agriculture. Hence, this analysis may not reflect a true economic analysis since the management was done by the students with little supervision by corps members in the programme. Prior to the commencement of the project, the students were taken through the rudiments of broiler production with series of lectures.
PRODUCTION COSTS ANALYSIS
The model used in calculating and estimating the Net Farm Income can be represented using the equation below:
NFI = ΣPyi Yi ˗ ΣPxi Xj + ΣFk i=1 j=1 k=1
Where:
NFI = Net Farm Income
Yi = Enterprise’s product(s) (where i=1,2,3,……n products)
Pyi = Unit price of the product(s)
Xj = Quantity of the variable input (where j=1,2,3,…… m variable inputs)
Pxj = Price/ unit of variable input
Fk = Cost of fixed inputs (where k= 1,2,3,…….k fixed inputs)
Σ = Summation/addition sign Using the above model, the project was analysed for economic viability (0-8 weeks). The expenses incurred in the project were of two category and they are variable costs and the fixed costs. The fixed costs is the costs incurred on fixed