Comparative Analysis of Profitability of Layers Production in Esan North East and Ovia North East Local Government Areas of Edo State, Nigeria|
EMOKARO, CO & ERHABOR, PO
This study examined profitability in layers production from day old chicks to
point of lay in Esan North East and Ovia North East Areas of Edo State. A simple random
sampling of 135 poultry farmers was carried out in the study area in order to generate data for
the analysis. Data collected were analyzed using Net Profit (NP), Gross Margin (GM), Benefit
Cost Ratio (BCR), Rate of Return on Investment (RRI), Rate of Return on Fixed Cost
(RRFC), Rate of Return on Variable Cost (RRVC) and Return per Naira invested (R/N) and .
Results of the study showed that the business of layers production was profitable and viable in
the study area with the following mean indices; BCR =₦1.39, RRI=₦138.67,
RRFC=₦2,097.12 RRVC ₦139.43 and R/N= ₦0.41 in. the mean gross revenue for the
respondents was computed as ₦7,324,350, with a gross margin of ₦2,144,638.00 and net
profit was ₦2,042,371.96. Result of the regression analysis showed that three of the eight
explanatory variables contributed significantly to income earned from poultry business; these
are fixed cost (P < 0.10), layers mash (P < 0.01) and miscellaneous expenses (P < 0.05).
Day old Chicks; Gross Margin; old layers; Point of lay; Profitability; Rate of return; Viability