Optimal farm size for achieving enterprise objective and sustainability in poultry meat production in Osun State, Nigeria

Abstract

This study attempts to identify the poultry meat farmers' objectives of production, analyse their socio-economic characteristics, determine the optimal farm size and prioritize the constraints to achieving the enterprise objectives. Taking Osun State of Nigeria poultry meat farmers as a case study, data on poultry meat business enterprise objective(s), socio-economic characteristics of farmers and farms, quantity and prices of inputs and output, and constraints to production were collected. Data were analysed using descriptive and inferential statistics, regression technique and importance indices.

From the profit function analysis, the profit maximizing output level was 1034 birds which was higher and more profitable than the mean output level (765 birds) that farmers operated. As many as 88 percent of the farmers sampled produced below the profit maximising level of output. Producing at the average profit maximizing level of output (223 birds) resulted in lower level of output and lower total profit than the mean and profit maximizing output levels. About 90 percent of the farmers produced higher than average profit maximizing output level. The constraints that limit farm size and which could affect sustainability of the enterprise were irregular demand of poultry meat, poor feed quality, high mortality rate and feed price instability in that order. These constraints, if addressed, would lead to increase in poultry meat supply to meet local demand and export.

Keywords::

• farm size
• enterprise objective
• maximization
• production constraints