Production Performance and Profitability of Small-scale Commercial Poultry Farms in Arsi and East-Showa Zones, Central Ethiopia

Abstract

Poultry farming and the demand for chicken meat and eggs are growing due to their quality protein, essential nutrients, affordable price, and low investment cost. The current study was designed to investigate the productivity and profitability of small-scale commercial poultry enterprises. Data were collected from 221 poultry farms using a semi-structured questionnaire. The results were presented using descriptive statistics. Farm performances were measured by total-factor-productivity (TFP), benefit-cost-ratio (BCR), and net-profit-margin (NPM). The majority of the poultry farm owners were male (69.68%) and married (77.4%). Around 55.2% of poultry farmers aged 31-45 years. Group-owned farms had 4.59 ± 1.77 individual members. On average, a batch of layer chickens was kept for 17.0 ± 3.87 and 18.12 ± 4.25 months on individual and group-owned farms, respectively. Moreover, the mean selling ages of pullet and broiler chickens were 2.55 ± 0.71 and 2.18 ± 0.51 months, respectively. The flock size of layer chickens in sole-proprietor farms (562 ± 724) was significantly lower than in partnership farms (1165 ± 877). The average numbers of produced pullets by sole-proprietorship and partnership farms were 3177 ± 2360 and 3137 ± 1826, while the mean numbers of broilers produced were 2257 ± 1875 and 3269 ± 1669, respectively. The average egg and broiler weights in sole-proprietorship farms were significantly higher compared to group-owned farms. Annual egg production rates in individual and group-owned farms were 76.5% and 70.4%, respectively. The cost of feed, chicken, housing, labor, and medication were the top five production expenditures, while feed cost shares 60.4%. Egg producers had NPM, BCR, and TFP indices of 38.99%, 1.03, and 2.03, respectively, with notable differences by ownership types. The NPM, BCR, and TFP indices for broiler and pullet farms, respectively, were 42.78%, 0.93, and 1.93 for broilers and 35.21%, 0.92, and 1.67 for pullets. The results indicated that poultry firms performed optimally, regardless of ownership type. To further improve the efficiency and profitability of poultry enterprises, farmers need technical, finance, and management skills and input supply chains. Keywords: Broiler, Layer, Poultry, Production, Profitability, Pullet