Factors affecting profitability of poultry layer production in Wakiso district

Abstract

The study looked at factors affecting profitability of poultry layer production. The profit margins of a poultry layer farm were regressed on different variables that determine the production. Since cost of feeds contribute 80% of total cost and eggs and culled bird sales contribute 97% of total revenue, these were used to calculate the profit margins. The study reveals that 58% of farmers are female,63% of the farmers are above 45 years of age, 55% of farmers use feed concentrates,65% closely supervise their farms and 64% of farmers have at least 100 number of flocks. To assess profitability, two tools were used these included benefit cost analysis and income statement per chicken for period of 18months. The results showed 1.3 and 15, 508/= respectively. Both tools showed the business was viable meaning each shilling invested earns 1.3 shillings. A farmer will earn at least profits of 15,508/= from each bird in period of 18 months depending on cost of production or prices. When profit margins were regressed on both farm and farmer characteristics the study found out that for each chicken in the period of 18 months., it showed A male farmer will to earn 2335.251/= profit margins less than the female farmer on each chicken for period of 18 months. A farmer who uses deep litter system will earn 7392.727/= profits less than the battery cage from each chicken for period of 18 months. Farmers using feed Concentrates are likely to earn 14,494.72/= profits less than those using local feeds from each chicken for period of 18months. The farmer who closely supervises the farm is likely to earn 6,506.27/= more than the farmer who is not closely supervising from each chicken for period of 18 months. Water is another farm characteristic which affects profits that is 2,254 /-profits for a farm using underground water earns more than the farm using tap water from each chicken for period of 18 months. The farmers ranked high cost of feeds and price fluctuations of eggs respectively as major constraints to the industry. The study concluded that there other factors that determine profitability of poultry layers other than the type of feeds used. The study concludes that the profitability of poultry layers do not depend on egg production rate but the cost of production determines profitability. The study recommends the farmer to find ways of minimizing costs by mixing local feeds with foreign concentrates ,this will help to both improve egg production and also control costs. The farmer should only use expensive concentrated feeds if the chicken can lay at least 300 eggs per year meaning the farmer must be in control of other factors that affect production like supervision , gender and management system or else the farmer should resort to cheap local feeds. A chicken that lays less than 240 a year is likely to fail to break even.