DETERMINATION OF RESILIENCE OF BROILERS FARMERS

Code No: 535287

₦5,000.00

ABSTRACT

The contributions of the poultry farms to Nigerian economic development will depend on its resilience to distortions in the ever changing economic scenario.This study evaluates the resilience status of poultry (broiler) farms in Delta state, Nigeria. Well structured questionnaire was used to collect primary data from randomly selected 200 broiler farms in Delta central and Delta north agricultural zones. Descriptive statistics, multiple regression and broiler enterprise budget techniques were used to analyze the data collected. The results from the descriptive statistics shows that the broiler farms in this study are dominated by literate (82%) male farmers (64%) within the age bracket of 40-45 years (35.5%). Majority of the farm operators are married (48%). The broiler enterprise budget analysis shows that the resilience threshold value for small scale farms is N 70,000 while the resilience threshold value for large scale poultry farms is N2,000,000. The percentage gap between observed revenue and breakeven revenue was used as a measure of broiler farms resilience status. The study reveals that the resilience status of the small scale broiler farms is 28% and the resilience status of the large scale farms is 31%. But the average resilience status for the broiler industry is 30%. The result from the study shows that the proportion of small scale resilient broiler farms is 106(58%) and the non resilient farms is 76(42%). The proportion of large scale resilient broiler farms is 13(72%) and the non resilient farms is 5(28%). The results of multiple regression show that finanial variables: retained earnings (2.98**), contingency fund (3.68**), liquidity ratio (5.67**) have a positive and a significant (P<0.05) relationship with the resilience status of broiler farms but and debt equity ratio(-2.89**) has a negative (P<0.05)relationship with the resilience status of the broiler farms. Non financial variables: stability of income(4.96**), social network membership(3.54**), access to basic amenities(3.88**), self motivation(4.18**), adaptive properties(2.590**), inherent properties (2.139**) have a positive and a significant (P<0.05) relationship with the resilience status of broiler farms.The result of the resilience threshold model shows that resilience threshold gap has a positive and a significant (P<0.05)relationship with the resilience status of the broiler farms. We recommended that Seminars, workshop and conferences should be organised periodically by the government and non governmental agencies to educate farmers on how to cope with the ever changing environment. The study recommends that Poultry farm operators should acquire skills and financial analysis in order to develop the ability to detect early signals of bankruptcy.

CHAPTER 1

CHAPTER ONE
1.0 INTRODUCTION
1.1 Background Information
Agriculture remains a key sector in the global economy even as industrial and service sector continues to grow. African agriculture is affected by globalization and climate change but is still fundamental to economic and social development in Africa. Agriculture is regarded as the most important sector in the economies of most non oil exporting African countries.
Agribusiness refers to a business that is linked with agricultural production, the provision of finance, machinery, fertilizers, seeds, etc. Small scale agribusiness is a modern form of agricultural business ventures operated strictly for the purpose of achieving profit (Olayide and Heady, 1982; Downey and Erickson, 1987). Chukwuma, (1999) noted that the agribusiness sector is divided into small, medium and large scale enterprises. Agribusiness is the privately owned and operated. It may be characterized by the following features:
Ownership and management are often rested on the same individual,
They tend to have small share and have no control over the market,
Capital is usually small and made available by the owner(s),
They employ usually less than 100 persons
Agribusiness enterprises are vital for the growth and development of Nigeria economy. Omeresan (2004) stated that for the agribusiness sector to survive and grow in this present volatile business environment, appropriate strategies must be developed and adopted by entrepreneurs. Such strategies should be properly investigated. The survival and growth of the agribusiness enterprises could be highly constrained by the physical, institutional and economic shocks in Nigeria. (Adebayo et al, 2004). During the second half of the 19th century a growing number of African agribusiness firms became involved in the international trade with agricultural products. This occurs as a result of an increase in trade, improved incomes in Europe and increased demand for tropical products. Many local systems of production in sub-Saharan Africa (SSA) benefited from this trend (Mkpado, 2012). Global firm level of agribusiness may likely face multiple challenges over the coming decades. The centrality of agribusiness is the interface between agriculture, and the rural sector cannot be ignored. This is because agribusiness has the capacity to provide greater employment, higher incomes, poverty alleviation and provision of Corporate Social Responsibility (CSR) through their requisite infrastructure (Dike, 1991, Anyanwu, 1997, Dunmoye, 1997).
Agribusiness firm responsibility is to produce more food to feed an increasingly affluent and growing world population that will demand a more diverse diet, contribute to overall development and poverty alleviation in many developing countries, confront increased competition for alternative uses of finite land and water resources, adapt to climate change, and contribute to preserving biodiversity and restoring fragile ecosystems. Agriculture continues to contributed heavily to the incomes of the rural poor. Improving agribusiness productivity, while conserving and enhancing natural resources, is an essential requirement for increased global food supplies on a sustainable basis. The role of smallholder agribusiness in increasing agribusiness productivity growth sustainably is very crucial. The productivity of most agribusiness firms is generally lagging.