Profitability and Financial Efficiency of Small-Scale Indigenous Chicken Egg Producers in Kenya

Abstract

This study examined the profitability and financial efficiency of small-scale indigenous chicken egg farmers. Farm-level data were analyzed using descriptive statistics and farm budget models. Results revealed that small-scale indigenous chicken egg enterprises were profitable, as indicated by the average net farm income and percentage profit measures. However, farmers were far from efficient in using financial resources, with the majority operating within the marginal efficiency levels. The cost structure indicated that feeds, day-old chicks, transportation, and water usage were the critical cost items accounting for more than 80% of the production cost.