Profitability of small scale piggery farming in Zirobwe Subcounty Luwero District

Abstract

This special project report was compiled after conducting research in Luwero district on the profitability of small-scale piggery farming. Its main objective was to understand the basics of small-scale piggery farming and economic principles used in decision making in order to maximize profits. It also exposes the student to the real economic problems and s/he is able to analyze and interpret the data collected and give necessary recommendations. The information attained in this report was collected mainly from direct interviews using questionnaires and mainly primary data was used. The main objective was to assess the profitability of small-scale piggery farming in Zirobwe subcounty Luwero district. A total of 40 small-scale piggery farmers were interviewed using questionnaires. The specific objectives were to determine the profitability, to determine the factors that influence the profitability of small-scale piggery farming and to identify the different constraints faced by small-scale piggery farmers. Results show that high transport costs, limited knowledge on value addition, poor roads, and low market prices are the major challenges affecting the marketing of the produce. Diseases, limited capital for investment, limited land and religious affair conflictions are the major production challenges that the small-scale piggery farmers are faced with. The gross margin analysis indicated that the enterprise is profitable with an average gross margin of 500,000 Ugandan shillings per enterprise though it’s still low but it’s a venture business that any farmer would love to invest in. The regression analysis show only three (3) factors that are significant in influencing the profit level of this enterprise. Age, marital status and access to extension services influence the gross margin though have some negative relationship. Finally the study recommends the relevant authorities to avail funds in form of credit at reasonable interests, extend extension services nearer to farmers, improve on the roads to ease transportation of inputs and output(produce) to the market, joining farmer groups and associations for higher price bargaining and resource acquisition such as funds(credit).