ABSTRACT

Diversification has become a popular strategy among Nigeria firms. It is a tool used by companies to divide their risk and. expand on a multiple range ofproducts and services using the concept of asset specificity. This study attempted to examine (he effect of product - market diversification on the market performance of poultry farms, we compared it’s effects on the profitability, sales volume and market share ofpoultryfarms that diversify and those that operates a single product or service. Simple descriptive statistical tables, performance analyses and logit regression were employed in the data analyses. The result shows that most (60.8%) ofthe respondents into poultry business in Abia State were male. This implies that men engage in poultry business more than their female counterparts. The mean age of31-40 implies that poultryfarmers are between the ages of 31 - 40 years meaning they are strong and active and are expected to be experienced. The result showed that (60.8%) of the respondent were married, while 13.1%>, 15.2% and 10.9%> are single, divorced and separated respectively. The result showed that (50%) ofthe respondents had between 6 and 10 years’ experience in poultry business in Abia state. From the findings, the result shows that poultry farms that are diversified into eggs, live chicken and processing performs better than those that operates a single business like egg only or live chicken only. For the factors affecting diversification in poultryfarms in Abia State, the logit regression result gave a value of R2 as 0.908. this implies that the independent variables included in the model, capital, size of the firm, education and access to credit were positively significant with, the product diversification at 5%>, 1%>, 10% and 5% respectively. While coefficient ofcapital has a positive influence on product diversification and was significant at 5% level. This result implies that increase in capital will result to increase in product market diversification. It was recommended that adequate provision should be put in place by the government to encourage women to participate in poultry business. Also, enabling environment should be created as well as conscious effort by poultry entrepreneurs to acquire more experience and technical knowledge on various practices of poultry business.