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

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A.B. AROMOLARAN

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 hare 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 the possibility of improving the profitability of egg
production through the agency of increased scale of operation. The study concluded that
even though economies of size exist in the egg production industry in the study area, the
degree of response of unit cost to enterprise size increase is tooosmall to have any
substantial effect on profitability of enterprise. Thus poultry-egg farm sizes will have to
be increased far more 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, tern-porary, and mere
income supplementing business which is presently the case. Access to production credit
will also need to be eased up.

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How to Cite
AROMOLARAN, A. (2023). ECONOMIES OF SIZE IN POULTRY EGG PRODUCTION IN ABEOKUTA, OGUN STATE, NIGERIA. Nigerian Journal of Animal Science, 1(2), 197–205. Retrieved from https://njas.org.ng/index.php/php/article/view/54
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