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Elasticity of Production and Profitability of Feed Milling Systems of Poultry Egg Farmers in Ogun State, Nigeria

Adetutu O Habib; Carolyn A Afolami; Olubunmi L Balogun; Stephen T Habib.

The study examined the elasticity of production and profitability of feed milling systems of poultry egg farmers in Ogun State, Nigeria. Primary data were collected from 99 poultry egg producers using simple random sampling technique. Data was analyzed using descriptive statistics, multiple regression, costs and returns analysis, and break-even analysis. The profit per bird for commercial feed users, toll mill users and self-millers were N1257.41, N1684.65 and N1879.45 respectively signifying that poultry egg production is highly profitable in the study area. The break-even points for commercial feed users, toll-milled feed users and self-milled feed users were 1,743; 586 and 4,228 crates of eggs per year respectively. The result further revealed that poultry egg farmers had negative, decreasing returns to scale (-0.921) in egg production. The study recommends policies directed towards reducing the cost of feed inputs and efficient use of resources

Key words: Egg Producers;Break-Even Point;Commercial Feed Users;Toll Mill Users and Self-Millers

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