Profitability of beef cattle fattening in the cosmopolitan city of Ibadan, Oyo State.

Abstract

The study was conducted in Ibadan metropolis to determine the profitability of beef cattle fattening. Data were collected from 50 randomly selected cattle fattening operators and were analyzed using descriptive and budgetary analyses. Results showed that 84 percent of the operators\' sourced capital from personal savings, relatives and friends. The structure of the herd kept typifies more of beef to dairy herds while the average herd size was 26 animals (LU). The cost figures indicate that feed and labour made up 46 and 37 percent of the variable cost respectively, while 84 percent of the total cost was the fixed cost. Cost-benefit analysis revealed a gross margin of N568, 689, and cost-benefit ratio of 1:1.3. Net income was estimated as N142, 735 and N 5, 554 per farm and head of animal respectively. However, the heavy dependence on credit from informal sources could limit the potential for expansion of the enterprise and this could be addressed by adequate funding from formal sources like cooperative societies and community banks. Keywords : Beef cattle fattening; Ibadan metropoli; Cost-benefit Moor Journal of Agricultural Research Vol. 6 (1&2) 2005 pp. 45-51