ABSTRACT

This study has examined the economics and resources use of Small Scale Poultry feed enterprises in Abia State, with view to describing the Small Scale poultry feed enterprises; determining the profit structure of these enterprises and to determine the factors influencing the performance of the Small Scale poultry feed enterprises. Data were collected from 60 enterprises from two Agricultural Zones of Abia State, namely Aba and Umuahia zones. The study made us of multi-stage sampling techniques. using structured questionnaire and information schedules. These Data were collected from both Primary and Secondary sources. The primary data were generated on fortnight collection in any given month. Only enterprises of production capacity of one to ten tons per fortnight and sourced 80% of their raw materials locally were selected for this study. In analyzing these data, the following tools were employed:- descriptive statistics, gross margin, net profit, financial ratios and regression model. Results from the analysis showed that these enterprises made profits and were economical in the use of resources. Multiple regression analysis further showed that profit, which is measure of performance of these small scales feed enterprises, was greatly influenced by variables like capacity, raw materials, access to credit and the age of the enterprises. On the other hand, access to extension services negatively affected profit. The study revealed three major problems encountered by these enterprises. These problems are short supply of raw materials, inadequate access to capital and lack of improved technology. On the whole, these small scale enterprises are economical and efficietit in the use of resources as depicted by huge profits posted. Among other benefits, these enterprises have created job opportunities, market for local feed raw materials, cheap and affordable source of protein in addition to being source of qualitative and quantitative feeds to the birds.