ECONOMIES OF SIZE IN POULTRY EGG PRODUCTION IN ABEOKUTA, OGUN STATE, NIGERIA

Abstract

Small scale commercial egg production has remained a common feature of the livestock industry in South-Western Nigeria since its introduction to the country about 4 decades ago. One of the major problems which have plagued the sector is the high cost of inputs. Based on the theoretical postulate that scale increases can result in unit cost reduction, this study attempts to establish +he possibility of improving the profitability of egg production through the agency of increased scale of operation. The study concluded that even though economies f size exist in the egg production industry in the study area, the degree of response of unit cost to enterprise size increase is too small to have any substantial effect -ria profitability of enterprise. Thus poultry-egg farm sizes will have to be increased far beyond the current prevalent range of flock-size (200-1800 layers), if the benefits of cost economies are to be substantially reaped by the industry. It is suggested that policy be directed towards encouraging farmers to take egg production as a full-time and permanent occupation rather than as a part-time, temporary, and mere income supplementing business which is presently the case. Access to production credit will also need to be eased up.