ECONOMIC ANALYSIS OF BROILER CHICKEN VALUE CHAIN IN KADUNA STATE, NIGERIA

Abstract

This study focused on the economic analysis of broiler chicken value chain in Kaduna State Nigeria, with the objective of determining the value addition and profitability of respective actors along the chain. A combination of purposive and random sampling was used to select 314 broiler chicken value chain actors from a list of active commercial broiler producers, input suppliers, traders, and feed millers and marketers compiled during reconnaissance survey was used as a sample frame for this study. Primary data was obtained through the use of four (4) sets of questionnaires administered using the Open Data Kit collect. A value-share model and Net farm income were used to analyse the data. The results of value addition and profitability per 100 birds per production cycle among the actors revealed that producers add the highest value (₦ 24, 081.3) along the chain. A net income of ₦ 38, 495.79, ₦ 9, 802.03, ₦ 13, 687.16, and ₦ 8, 955.76 was realized by producers, input supplier, traders and processors respectively. Consequently, a return on investment of 1.16, 1.06, 1.14, and 1.11 was realized by the producers, input supplier, traders and processors respectively. It was concluded that broiler chicken producers have a high value gain ₦684/ton which is over 47% of profit share when compared to other actors in the study area. It is therefore recommended that actors at every node, especially broiler producers, focus on improving coordination and collaboration with other actors in the value chain to achieve efficiency, reduce costs, and increase value addition.