Integrated Poultry And Fish Farming Enterprises : Comparative Economic Analysis In Ughelli North Local Government Area Of Delta State
Poultry And Fish Farming Enterprises : Comparative Economic Analysis
The Nigerian agricultural sector is responsible for the production of food and livestock with poultry production accounting for 80% of the production (Olusunkami, 2008). Livestock is important for increased productivity in Nigerian agriculture as it provides food and fertilizer (Kekocha, 1994). Get Poultry or Fish farming Feasibility Study Now, Click here. The growth of a country’s population is usually accompanied by increases in the demands for the basic necessities of life including water, food and shelter. This is the case for the unrestricted increases in the demand for protein rich food items of animal original (Ugwumba and Chukwuji, 2010). Food and Agriculture organization (FAO, 1991), recommended that an individual takes 35 grammes of animal protein per day for sustainable growth and development. However, the animal protein consumption in Nigeria is less than 8g per person per day, which is a far cry from the FAO minimum recommendation (Niang and Jubril, 2001).
The term fish is a diverse group of animal that live and breathe in water by means of gills. Fish is one of the most diverse groups of animal known to man with more than 20,500 species. There are more species of fish than any other vertebrates (Eyo, 1992). The major animal protein sources in one country include; cattle, goats, sheep, poultry and fish .Out of these sources, fish and fish products provide more than 60% of the total protein intake in adults especially in the rural areas (Adekoya, 2004). Therefore, the importance of the fishing industry to the sustainability of animal protein supply in the country cannot be over emphasized. The awareness of the need for adequate protein in the human diet has greatly increased in many developing regions of the world and fish has been widely acknowledged as a rich source of dietary protein (Ajayi, 2001).
In as much as fish especially the catfish species is widely consumed in Nigeria, it is not the only important source of animal protein. Poultry and its products are also good sources of animal protein in nutrition. Poultry meat and eggs offer considerable potential for meeting human needs for dietary animal supply (Folorusho and Onibi, 2005). The poultry industry in Nigeria has undergone a significant transformation since the early fifties, from a backyard, peasant and primitive house hold oriented husbandry to modern and large scale poultry which can be found in the country side and urban centers today. Though the value of livestockresources have grown in absolute terms in recent years its overall contribution to agricultural output remains dismally low (CBN, 2006).
The growth of the poultry industry in Nigeria was very impressive from the 1960’s to the 1980’s. In 1986, Nigeria had the largest poultry population in black Africa. Poultry keeping provides a method by which rapid transformation in animal protein consumption can be achieved and this accounts for the expansion of small-scale poultry enterprises in Nigeria in general (Ike and ugwumba, 2011).
In Delta state, there seem to be a continuous rise in the number o0f fish and poultry farming enterprises. Akinyemi (1998) projected that fish demand would increase from 1.392 million tones in 2001 to about 1.688 million tones in 2010. Fish farming in Nigeria is carried out by small scale operators in small fresh water ponds which is widely spread in the Niger Delta region in which Ughelli North Local Government Area is a part of. The catfish species seems to be the most widely cultured fish in the Delta region.
This study is therefore aimed at carrying out a comparative economic analysis of poultry and fish farming enterprises in Ughelli North Local Government Area of Delta State as a case study with emphasis on the level of productivity and profitability of both agricultural enterprises.
Protein intake in developing countries are below the required 35g per person per day (FAO, 1995) and the Nigerian population is growing at about just 21%per annum (Owolabi, 2002). Recent accounts show that domestic demand (because of progressive increase in the Nigerian population with over 140 million people) for fish in Nigeria could not be met only by dependence on artisanal fisheries which experts say is fast depleting (Ojo and Fagbenro, 2004).Regrettably, the supply of food fish has been on the decline which is due to consistent declines from the country’s major source of food fish, the artisanal fisheries from 90% in 1990 (Tobor, 1990) down to 40% in 2006 resulting to about 300,000 metric tones (Global Agricultural information Network GAIN, 2007). Currently, domestic fish productions put at 551, 700 metric tonnes as against the present national demand of about 1.5million metric tones estimated for 2007 (Osawe, 2007). The annual state of economic report by sector published by the central Bank of Nigeria shows that Nigeria imports over 200 million US dollars’ worth of frozen fish per annum. This however, accounts for over 50% of fish consumed annually to offset the gap in the domestic demand in the country (CBN, 2006).
In Nigeria, animal protein especially meat is expensive, in short supply and is out of reach to the majority of the population. The effect of inadequate animal protein intake is felt more by a large proportion of the population especially in rural areas whose inhabitants constitute over 70% of the Nigerian population and who constitute over 85% of extreme poor in the country (Chukwuji ,Inoni,Ogisi,andOyaide,2006).Due to this reason and because there will be increase in population and demand for animal protein, different sources, one of which is poultry production are exploited towards meeting these needs (Ugwu, 1990). Experts have identified lots constrains to poultry production. These constrains include; high mortality rate, predation, high incidence of diseases, inadequate supply of day old chicks, high cost of feeds and veritinary services, inadequate finance and lack of market information (McAinsh,Kusina,Madsenand Nyoni,2004).
According to Ike (2011), feed and mediationcost has risen above the reach of most farmers. This has drastically reduced the profit margin of poultry farmers. Given the above, poultry farmers would be faced with the problem of deciding whether to continue or embark on other agricultural enterprises like fish farming. There seem to be a gap in knowledge about the most productive and profitable enterprises amongst the two. That is what this research is designed to fill.
The question for which this research is meant to answer include:
i. Who are those involved in fish and poultry production in Ughelli North Local Government Area?
ii. What are the production types and levels?
iii. What are the levels of productivity and profitability of both enterprises?
iv. Which enterprise is more profitability poultry or the fishery enterprise?
v. What are the constraints militating against production in poultry and fish enterprises in the area and how can they be ameliorated?
The broad objective of this study is to carry out a comparative economic analysis of poultry and fish farming enterprises in Ughelli North Local Government Area of Delta State.
The specific objectives are to:
i. Describe the socio-economic characteristics of farmers involved in poultry and fish farming
ii. Determine the levels and types of production;
iii. Determine the levels of profitability of both enterprises,
iv. Ascertain the more profitable enterprise amongst the two enterprises,
v. Identify the constraints militating against production in poultry and fish farming enterprises in the area and how they can be ameliorated.
Two null hypotheses will be tested in this study;
H01: there is no significant relationship between the socio-economic characteristics of poultry and fish farmers on the amount of profit obtained.
H02: there is no significant difference between the profitability of poultry and fishery enterprises.
This research work is expected to guide emerging entrepreneurs in making decisions on the venture (fishery or poultry) to embark on. Farmers in the study area will gain more knowledge on the relative economics of poultry and fish production which will enable them make decisions whether to venture into one of the enterprises relative to the other or to embark on an integrated production system.
This research is also aimed at providing materials for future students to aid them in their research work and also help government and non-government organizations (NGOs) to postulate polices that will improve production to meet animal protein needs in the study area and beyond.
The identified constrains associated with the two enterprises may guide intending entrepreneurs especially young school leavers on how to invest wisely and avoid some investment pit falls as start-ups.
The review of literatures in this poultry work encompasses the history of poultry and fish farming, systems of poultry management; poultry farm planning, types of fish ponds, level of management input, fish culture practices, scale of production, socio-economic benefits of fish and poultry farming. Input-output relationship for poultry and fish production.
Overview of Poultry Farming
Poultry farming is the practice of raising domesticated birds such as chicken, turkey, ducks, quails and geese, as a sub-category of animal husbandry for the purpose of farming meat or eggs for food (Anon, 2011). The term poultry refers to a wide range of birds of various species and it applies to them generally-alive or dressed (killed and prepared for sales). It has a coating of feathers, no teeth, soc-like appearance and legs with spurs (Nwakpu, 2011). The domestic fowl known as Gallus domesticus originated from south East Asia and has been subjected to extensive breading for size, colour, conformation and egg laying ability. The presence of the comb distinguishes it from other birds. Their breathing and pulse rates are high and body temperature ranges from 105OF to 109OF, which is higher than that of other domestic animals (Nwakpu, 2010).
Poultry enterprises for the production of both broiler and eggs have been established throughout the federation and have made a substantial contribution to urban protein supply. Although many poultry farms have gone into liquidation in recent years, those with efficient management should survive as there is a substantial demand for eggs which cannot be met from present levels of backyard production (Marire, 2010).
History of Poultry Farming
Pigeons, ducks, quails and geese were bred in china more than 3,000 years ago. Chickens, developed from the Asian jungle fowl which were domesticated probably about the same time. In ancient and medieval times in the old world, chickens were raised primarily for cock fighting (Anon, 2011). In the 16th century, chickens were introduced into America from Europe from America. After cockfighting was outlawed in the United States, Canada and Great Britain in the 19th century, poultry fanciers raised chickens for exhibition purposes (Singh, 1976).
The modern poultry industry began in the late 19thcentury in Europe and America as breeders began to stress meat and egg production (Leslie and Nesheim, 1967). Although eggs were artificially incubated in ancient china and Egypt, this method of batching poultry was not used on a commercial scale until the 1870’s. The first college department of poultry husbandry was established in 1901 at the University of Connecticut. Discoveries and inventions relating to the scientific housing, feeding and breeding of poultry led to the rapid expansion of the industry after the 1930’s production and consumption of poultry products increased immensely during world was scare (Anon, 2011).
Systems of Poultry Management
Poultry management is an aspect of poultry production which requires great attention. It determines greatly the level of viability of the industry. Poultry production system entails the level of management of poultry birds.
According to Nwakpu (2008), birds are kept under three major management systems which are;
• Intensive system
• Semi-intensive system
• Extensive system
Intensive System Management
This is the system which allows for the confinement of birds into a particular housing unit. Birds are given limited space to move about but all nutrient requirements in terms of feed and water are provided the system is divided into two forms
• Battery cage
• Deep cage
This is the system in which birds are kept in a particular cage. The cage made of expanded metals built in a slanting form to allow eggs to roll down. There are opening through which the birds can pass out faces, feed and drink water.
1. The birds conserve their energy because they are confined.
2. Unproductive birds can be identified.
3. Culling is very easy to carry out.
4. It allows for adequate and accurate record keeping.
5. Labour can be conserved.
6. Eggs are not lost to thieves and snakes.
7. Good hygiene can be assured and as such the spread of disease and pest may be reduced.
8. Mass vaccination against diseases is made possible.
1. The spread of diseases can be very fast since animals are kept very close to each other and share the same feeding and watering troughs.
2. There is a high cost in setting up the farm.
3. Fertile eggs cannot be produced and as such there may be reduction in chick production.
4. Since birds have no movement, then balanced diet must be provided or malnutrition may arise.
5. Lack of freedom.
Deep litter system
This system involves the keeping of both male and female poultry birds together. Cages may not be required, but the floor of the house must be concrete and covered with straws, dried grasses or wood shaving which absorbs the water associated with feaces. The roof is made of iron sheets or asbestos. Birds are provided all their needs in terms of water and feeds
1. There is a reduction in loss of eggs to thieves,vermins and snakes.
2. Culling of stick birds can easily be carried out.
3. It maximizes the use of cancel.
4. Labour can also be maximized.
5. Very large stock of birds can be managed.
6. It requires less capital than the battery cage system.
1. The cost of construction of the deep litter house is usually high.
2. Birds tend to waste feed.
3. Vices like cannibalism, peeking, fighting, egg eating, feather fluffing may be very rampant.
4. The spread of disease and pest is very rapid.
5. Eggs may be dirty due to the stains from the litter.
6. It is very difficult to cull unproductive birds since all of them lay their eggs irregularly.
The intensive system of poultry prevents access to pasture unless it is brought to the birds. It also prevents access to sunshine although the pattern of poultry houses in the tropics may allow some entry of sunshine through the sides (Avens, 1985).
2.2.2 Semi-Intensive System of Management
This system is mostly practiced in government, university and demonstration farms. The semi-intensive system of poultry production involves the restriction in the movement of birds, but not confining them to such a small area as in the intensive system of management (Dereck and John, 1981). The system involves the keeping of birds in a solid building which serves as the noon day protection for harsh weather like rain and sunshine and sometimes for egg laying. The house is fenced round and birds can be shifted from one unit to another. It combines some traits of the intensive and extensive systems.
1. Fertile eggs can be produced if male and female birds are kept together
2. Birds are provided with adequate feed and water
3. Birds have the opportunity to exercise themselves
4. The cost of management is low compared to the intensive system.
1. Makes record-keeping difficult, while the identification of unproductive birds is impossible.
2. Vices like fighting, egg eating, feather fluffing, cannibalism and pecking may be very rampant.
3. Renders eggs dirty and creates room for their loss.
4. Vermins like thieves, snakes etc are common
The Extensive System of Management
In extensive system of production, the poultry birds are not restricted in any way. They can wander in the field, as they like. Occasionally, they have a separate chicken compartment but this is rare due to thieves and predators (Chiligati,Foster and Chitukoro,1995). According to Kwarteng and Towler (1994), poultry under extensive system of production are provided with simple shelter and are occasionally fed by the farmer. However, the birds find most of their food in the form of insects, herbage and seeds on the range.
The extensive system is one of the oldest forms of poultry management where birds are allowed to fend for themselves with little or no assistance from the owners. This system is sub-divided into two forms;
This system is ideal for chick rearing and also for transporting birds from pen to the market. Traders also rely on the fold system before disposing of their birds.
A fold may be made with a basket or other movable housing units. About 50 top 100 birds are kept inside the basket and feeding, watering troughs with feed stuff are supplied to the birds. This fold is mobile and can be moved from one point to another.
1. Ideal for chick rearing.
2. It is mobile and so helps in the transportation of birds to the market.
3. Cheap to practice.
4. It can be practiced on a small land area.
5. The farmers will have adequate control of the birds because of their small size
1. It is not good for the commercial production of birds.
2. Fertile eggs may not be produced.
3. Vices may develop, e.g. fighting, pecking.
4. Eggs will be dirty.
5. The spread of disease is high because of the closeness of the birds.
6. The houses or folds may be damaged due to constant transfer of the units.
Free Range System
This system of management is as old as man’s existence on earth. It is mostly practiced by the subsistence farmers. Birds are allowed to roam about with only noon day meals. No housing or other care is provided. In some cases, housing unit for resting are provided otherwise birds sleep on top of trees or anywhere at night.
1. The cost of keeping birds is very low
2. The taste of the meat is better than birds kept in other systems
3. Fertile eggs are produced.
4. Since the birds pass out feaces indiscriminately, it helps in distribution of manure.
1. Egg production is low.
2. Birds have small size.
3. They cannot attain market weight in time.
4. Birds are exposed to danger of harsh weather, thieves, vermins, snakes and accidents from vehicles.
5. Eggs are dirty and some may be lost.
6. Female birds may be mated by more than one male and so the offspring father is indeterminable.
7. Can only be practiced on a large area of land.
Poultry Farm Planning
Regardless of the size of the poultry farm to be embarked upon, it is important that it should be properly planned prior to its establishment. Many poultry farms folded up because of poor planning. According to Marire(2010), proper planning includes:
1. Project Identification:Some people went into poultry farming because they assumed it was an easy way to make millions of naira within a short time. Before embarking on a poultry project, its viability must be identified. Factors to be considered in the identification process must include; a market survey of the demand for poultry products in that locality, suitability of the proposed site, and accessibility to essential services and production inputs. A careful analysis of these factors will point out which enterprise(s) will be most suitable in a particular environment.
The best tool for project identification is a properly prepared feasibility study. For small scale projects, a feasibility report can be obtained free from government livestock and vertinary officers who have had training and experience in poultry management. For large scale project, an agricultural economist should be consulted to prepare the feasibility study. Some government agencies may be able to prepare such a report free or at a minimum cost.
2. Land: (Site and Availability): While it is true that the requirement for land is comparatively small, it is important to realize that there is a minimum land size requirement for each poultry enterprise. Feed milling, broiler and egg production have the least land requirement while breeder farms and hatchery operations requires sizable land. The site of the poultry farm is also important. Access to production inputs and market outlets for prompt disposal of poultry products are absolute necessities for successful poultry production. Good drainage and a suitable topography most be also considered.
3. Housing: Select housing designs that are cheap, durable and comfortable for poultry. Spending money on expensive poultry houses and offices is an unnecessary overhead cost which can wipe out or narrow the profit margin significantly. If those poultry houses do not provide good ventilation, the birds will not grow or lay eggs to their potential thus resulting in poor productivity and financial losses.
4. Water Supply: A steady supply of clean water should be made available for the birds in order to facilitate feed digestion and also efficient egg formation. Poultry farming is a highly risky business. It is very gratifying that the federal Government has introduced an agricultural insurance scheme. Poultry farmers should seriouslyconsider insuring their flocks. Other essential security measures include; fencing to prevent encroachment by neighbours and predators and to minimize public access to the farm.
A system of checks and balances must be worked out with all the farm workers in order to minimize pilfering of eggs, live birds and other property that can easily be stolen
5. Financing: How will the project be funded? If the money is to be raised as loan from a financial institution, the conditions for obtaining such a loan must be thoroughly understood before submitting an application. Regardless of how the project is to be funded, the farmers must operate within the limits of available financial resources.
6. Marketing: Poultry eggs and meat are highly perishable products. Timely disposal is therefore a necessary condition for profitable poultry production. Keeping a set of broiler that eats 10 bags of feed a day longer than necessary will result in great loss. For large scale farms, serious consideration should be given to the provision of cold storage facilities for preserving products that cannot be marketed immediately and transportation facilities for evacuation of products to distant market outlets when the need arises.
These elements of poultry farm planning are important not only to the beginner farmer but also the established farmer who needs to re-evaluate his success and values. The need for proper planning before and after investing in poultry farm project cannot be over-emphasized.
Obetta,Ugwu and Omeje(1988), in their own submission compared the stream of investment and production costs of an agricultural undertaking with the flow of benefits it would generate. They pointed out that for any profit, interest could be centered on the productivity or profitability of the whole society or economy of all the resources committed on the project regardless of who in the society receives the benefit or the return to individual participants. Akinwumi (1979) stated in his study that profitability is not a function of investment alone, since management and husbandry play very important roles.
The success of the poultry industry in encouraging and sustaining increased poultry production to a large extent therefore depends on the development of cheap, nutritious, cost effective feed that can easily be compounded on the farm using locally available farm material resources and technology (Ugama 1997). According to Kekocha (1994), profit in poultry enterprises is a function of favourable relationship between costs of production and the revenue returns accuring form the sales of the products. Some of the factors influencing profitability of poultry business includes;feeds conversion, market prices, size on the enterprises, feed and raw materials.
Fish Farming in Nigeria
In Nigeria, Agriculture provides between 80 to 90 percent of the country’s food needs (Odife, 2002). It however has diverse aspects and this includes fish farming which involves the rearing of fish for the purpose of consumption or sale. Fish is acclaimed to be principal source of animal protein for over one billion people globally and provides many important nutritional and health benefits (Raufu,et al., 2009). Fish has the highest level of easily metabolisable proteins; it is reputed for its high quality proteins, fats, vitamins, calcium, iron and essential amino acids. Fish farming is a profitable venture and it is rapidly expanding and it will continue to be profitable if the planning and management are well taken care of (Afolami and Oladimeji, 2003).
Fish farming started in Nigeria over 40 years ago (Ekwegh, 2005). The Nigerian government has recognized the importance of the fishery sub-sector and has made several attempts over the years to increase their productivity through institutional measures. Some of these measures include providing subsidy for inputs and exemption from tax for fishermen. Dada (2004) states that despite the efforts of the government, there is still a deficit in the supply of fish to the population.
Fish farming was introduced to Africa after the word War II. However in comparism to the rest of the world, aquaculture production is still insignificant at the global level and accounts for about 0.9 percent (404,571 tones) of the total global aquaculture production in 2000 (FAO, 2003). Fish farming in Nigeria as stated in reports of the food and Agricultural organization (FAO, 2002) could be said to be comparatively recent when compared with agriculture and has remained mostly a government affair with the sudden realization that the minimum sustainable yield (MSY) of most of the world seas and fish species have been reached. Coupled with the fast growing global human population, it became imperative to give aquaculture the prominence it deserves for enhanced quality food production.
Types of Fish Ponds
Bolorunduro (2000), identified and classified fish ponds using construction design, level of management input, fish culture practice, scale of production of the criteria.
1. Earthen Ponds: These are ponds constructed by digging the soil in a carefully selected site that is good enough to retain water for fish culture. Where the soil structure is weak to retain adequate water, dug out earthen ponds can be rein-forced with concrete to make it suitable for fish culture.
2. Concrete Ponds: These are ponds constructed with concrete. They are usually above the ground surface with concrete walls. Concrete ponds are used to raise fish in places the soil is porous or very sandy, at house backyards or where land scarcity exists. In general, concrete ponds are more expensive to construct and maintain than earthen ponds. Earthen ponds are known to be more productive in terms of fish yield and are therefore more profitable.
3. Barrage Ponds: These are constructed by building a wall across slow running stream in low valleys. The wall ensures enough water retention for fish growth.
4. Diversion ponds: These are ponds created by water diverted from a river/stream through a channel. Such a pond is also known as a relief pond.
5. Rosary Pond: When ponds are built on a string and each drains into the other and are all managed as a single unit due to their inter-connection, they are called rosary system ponds.
6. Parallel ponds: These are ponds located in the same area with each having its own inlet and outlet. Various pond designs listed above have peculiar cost implications.
Level of Management Input
Depending on the level of management inputs (especially in feeding, fertilization and liming), pond culture systems can be classified as extensive, semi-intensive or intensive. Returns on investment for each other differ depending on the level of input.
1. Extensive culture system: When the food base of a pond isexclusively dependent on nature without supplementation (either by feeds or fertilizer) the culture system is an extensive one. Extensive culture attracts less cost, but is often less productive and less profitable.
2. Semi-Intensive Culture Systems: In this system, there is occasional supplementary feed addition and natural feed addition and natural food supply is augmented with manure. This attracts more cost, but better productivity and profit are assured compared with the extensive culture system.
3. Intensive Culture System: This System demands the highest level of management input. Protein rich feeds are intensively applied following appropriate recommendation rates. The ponds are occasionally disinfected against parasite and diseases. Fish grow very fast when intensively managed and grow least in extensive management. Intensive culture system requires high expertise. It also demands high level of supervision. Investment cost is comparatively higher but commensurate higher productivity and profit is certain.
Fish Culture Practices
Culture practices can be classified as monoculture, polyculture or integrated.
1. Monoculture –This is the practice of culturing only one species of fish in one or more pond units. Under monoculture; the farmer may grow fro example only Tilapia or clariasin the pond. One disadvantages of this practice is that the farmer will only know more about the management of that fish than other species that can be cultured. However, the purpose of culture determines the investment cost. Growing one type of fish could limit the maximum exploitation of natural and supplementary food in the pond, thereby affecting pond optimal utilization
2. Polyculture: This is the practice of culturing more than one species of fish in the same pond e.gclarias and Tilapia. Fish yield under polyculture can be high because feed items in the pond are properly utilized since the different fish species exploit food at different levels. Well managed ponds under polyculture can be highly profitable since food utilization is maximized and less risk of project failure is assured.
3. Integrated Culture: This involves rearing fish with other animals or vegetable gardening. Integration of fish culture with livestock/gardens can maximize production space and productivity. Understanding the know-how of managing such integration is important to a farmer in order to maximize profitability of this culture integration.
Scale of Production
1. Homestead/Backyard Ponds: This is a fish pond that is managed to augument family protein intake. The size of such a pond could vary according to land space available e.g. from 25cm2 to 100m2. Such ponds can be homestead/backyard or located in a farm.
2. Commercial Fish Ponds/Farms: This usually has an area of land not less than half a hectare under culture (for earthen ponds). Such a farm will demand more attention form the fish farmer, since income generation is the major purpose behind its establishment. A large capital base is also required for commercial farms. However concrete ponds of 100-200m2 can also be utilized for commercial purpose especially under intensive management.
Significance of Fishery Industries
Ude (2000), stated that the fishery industry is very significant to the economy of developing countries especially Nigeria. He went further to identify 8 areas where the fishery industry in Nigeria could be immense significance.
1. Fish as Food: Proteins are very important part of food. This is because it supplies the body with body building substances essential to good health. Fish is very rich in protein and the encouragement of its production is a very good way to eradicate protein deficiency and malnutrition. Fishery industries make available this important protein source in Nigeria thereby enhancing quality food production.
2. Employment: fisheries like every other industry, utilizes labour as one of the factors of production. This implies that many hands both skilled and unskilled are gainfully employed in several fishery operations and allied disciplines. Thus in any nation where fisheries is given the right of place, the unemployed could secure jobs easily. This will reduce to a great extent the rate of unemployment and crime, since it is mostly the unemployed in the society that are involved in criminal activities
3. Integrated Rural Development: Fish farming takes place in the rural areas just like most agricultural activities. This discourages the drift of many people form such areas to the urban areas in search of jobs since they could be employed within their own localities. Given time, fish farming business area will attract the presence of government to construct good roads, provide pipe borne water, rural electrification and other amenities to serve the inhabitants of such rural communities. Thus a balance in population spread is maintained.
4. Enhancement of utility of Resources Ordinarily Termed Useless: Generally, swampy mangrove zones, unproductive tidal flats, flood plain, burrowed pits and salt affected rice fields are regarded as useless in terrestrial agriculture. However, this so-called “useless resources” could be utilized for fish farming, thus increasing food production for the populace.
5. Foreign Exchange Earners: Some aquaculture animals are specifically cultured for export to meet the high demand for them in foreign countries. Most tropical ornamental fishes and African freshwater giant prawn (Macrobrachiumvollenhovenii)are good foreign exchange earners when exported to most western countries where they are highly priced. This improves the economy of the exporting country.
6. Aesthetics: Some fish species are kept in aquariums in many homes and public places because of their beauty and appeal to the human eye. Many are conserved in fish gardens for recreational purposes. During seasons of celebration and most evenings, people pay to be allowed into the gardens for sight-seeing and relaxation. This is called “ornamental fishery”.
7. Industrialization: There are several individuals and firms involved in producing the gears, crafts and other materials used for fishing, fish processing and fish keeping. They include the manufactures of fishing nets, traps, hooks, fish trawling equipment, aquariums and smoking kilns among others. There are also many industries involved in the processing and utilization of fish and fishery by-products; most of these firms employ graduates of other disciplines such as accountants, microbiologist, administrators and marketers to mention a few.
8. Fish Transplantation/Ranching: Through aquaculture, fish could be reared and transported into natural water bodies such as rivers, streams, lakes, lagoons and even oceans to replenish the stock and improve the sustainable yield of the natural water bodies. All these tend to increases food production and perpetuation of these natural resources.
Input –Output Relationship of poultry And Catfish Production.
Inputs are factors of production or resources utilized in a production process. Output on the other hand is the total amount of produce(table size fish, eggs and poultry meat) which could be expressed in monetary terms to give the total revenue or income obtained from production. Inputs utilized in catfish and poultry production include: labour, feed, vaccines, drugs, power chicks, fingerlings etc.
The input –output relationship is a production function which shows how inputs react in a production process to give the output. In poultry and catfish production, quality and quantity of inputs especially feed and vaccines are important determinants of the output therefore it is of utmost importance in production.
The study will be carried out in Ughelli North Local Government area of Delta State. Ughelli North is one of the largest Local Government areas in the State with an area of 818km2 and a population of 321,028 people according to the 2006 population census. 15 villages will be chosen from the local Government area for this research work and they include: Oteri, Otovwodo, Ododegho, Ekiugbo, Afiesere, Evwreni, Ovwo, Oto-Iwhreko,Ogor,Igwrekpokpo,Ufuoma,Okpare,Erhuemukohwoanie, Ekrejebo and Agbara-otor.
The study area is located in the tropical rainforest zone of Delta State in the south-south geopolitical zone of Nigeria. Its head quarters is the city of Ughelli.The area is bounded to the east by Isoko North Local Government Area, to the West, it shares boundary with the Uvwie Local Government Area. It also shares boundary with Ughelli-South Local Government Area and Ethiope-East Local Government Area. It lies between latitude 9o45’N and longitude 8o43’E.
The climate is tropic, hot and humid with heavy rainfall ranging from about 2,500mm-2800mm per annum and can last for about 10 months beginning in late February to early December. The soil is a sandy loam soil rich in organic matter which makes it convenient for growing crops such as cassava, Okra, Maize, oil palm, plantain, and yam among others. The major occupation of the inhabitants of Ughelli North Local Government area is trading, farming and civil servant.
Summary, Conclusion and Recommendation.
Summary of result.
The study was carried out to examine the comparative economic analysis of poultry and fishery enterprises in Ughelli North Local Government Area of Delta State.
The result shows that the active age of poultry farmers ranges from 20-60years with a frequency of about 93.3% and for fishery enterprises the active age is between 20-50years with a frequency of 73.3%.Male farmers were found to be involved in poultry and fishery farming with a frequency of 70% and 80% respectively. Production in both enterprises was found to be engaged by married farmers at 46.7%.The household size of farmers in poultry production was within the range of 1-6members at 73.3% and for catfish farmers 66.7%.Educationally,all the farmers had one form of education or the other with about 43.35% attaining bachelors degree for poultry farmers and 40% for catfish farmers.
The farmers who engaged in poultry farming had farming experience within the range 0f 1-15 years amounting to 76.7%,catfish farming on the other hand,had experience within the range of 1-10 years amounting to 76.6%.The poultry farms in the study areas had capacity within 100-2000birds at 80%,catfish farms on the other hand had tablesize fish capacity of 1000-7000kg at 93.3%.The annual income shows that 30% of the poultry farms earn below N1,000,000 while only 10% earn above N10,000,000.The remaining 60% earn between N1,000,000 and N10,000,000 on the average. The catfish farms earn between N500,000 and N3,000,000 on the average at 56.7%.
The study revealed from the gross margin analysis and the cost-benefit analysis that invested resources on catfish production generates higher return than when invested in poultry production. From the cost-benefit analysis, it was revealed that every N1 invested in catfish production yields a return of N2.160 while the poultry enterprise yields N1.392 on every N1 invested into production. This implies that the catfish enterprise is economically more viable than the poultry enterprises in Ughelli North Local Government area of Delta State.
More so, certain constraints affecting the production of poultry and fish products in the study area were identified and they are; lack of adequate capital, lack of government assistance, unavailability of energy(light),poor market outlets for production inputs and outputs, disease outbreak, lack of quality feed material, high mortality rate, problem of flooding during rainy season, problem of draught during dry season.
The result of the regression analysis showed that the socio-economic characteristics of poultry farmers had a positive relationship with annual income except for age,sex and household size which were found to be negatively related. Catfish socio-economic characteristics were also positive except for age, sex, marital status and farming experience. There were significant differences in the socio-economic characteristics of poultry and catfish farmers in the sense that in the poultry enterprises, marital status and farming experience were positively related to annual income while they were negatively related in the catfish enterprise. The tested hypothesis shows that the F-calculated of the poultry enterprise is greater than that of the catfish enterprise, therefore the second null hypothesis (Ho2) is rejected and the alternative hypothesis is accepted implying that there is a significant difference between the profitability of poultry and fishery enterprises.
Based on the findings of this research, it can be concluded that majority of farmers engaging in poultry and fishery production are educated males with an average number of household members. It can be concluded that the catfish enterprise is more economically viable and profitable than the poultry enterprise in Ughelli North local government area of Delta State.
On the basis of the findings of this study the following recommendations were made;
1. Infrastructural facilities such as stable electricity, adequate outlets for production inputs and outputs should be provided.
2. Government should increase the development schemes of poultry and fishery production in the study area and make it more accessible to the farmers.
3. There should be a reduction in the interest rates of loans given to poultry and fish farmers to encourage them to obtain loans to enhance production.
4. Production inputs such as feed, vaccines, drugs etc. should be subsidized to the variable cost of production in the poultry enterprise.
5. Farmers who engage in integrated poultry and catfish farming should invest more in catfish production since it yields more return on resources invested.
Poultry And Fish Farming Enterprises : Comparative Economic Analysis