Publisher: Bachudo Science Co. Ltd

Factors Affecting The Gross Margins of Broiler Enterprises In Calabar Municipality, Cross River State, Nigeria

D. I. Agom, A. Essien, S. O. Akpet, G. Edame
KEYWORDS: Gross margin, Broiler enterprise. regression. input variables. coefficients

ABSTRACT:

A survey was conducted to determine the factors that affect the gross margins of some broiler farms in Calabar Municipality of Cross River State using regression analysis. Six independent variables (X,-X6) were fitted into the regressionequation to determine gross margin which is the dependent variable (Y). These independent variables were cost of feed (X,), day old chicks (X2). labour (X3), drugs and vaccines {X4), water (Xs) and other costs ~Xs). The linear functional form was selected as the lead equation on the basis of the strength of the coefficient of determination (R ), significance levels of variables and the signs of the coefficients. The linear function had an R2 value of 65. 7% implying that 65.7% of the variation in gross margin was explained by the included variables in the equation. The F value of 5.75 was significant at 1% implying that the overall equation had significance.The coefficients were all negative except other costs (X6). meaning that they were all negatively correlated to the gross margin. This implies that the more the amounts expended on these variables, the smaller the gross margin. However, only cost of feeds, labour and other costs were significant at 1%, 5% and 5% respectively. There is therefore the need to keep the amounts expended on all these variables low, particularly cost of feeds which was significant at 1%, implying a very strong influence on gross margin. This can be achieved by looking for cheaper alternatives such as cassava to supply carbohydrates instead of maize, in a way that would not compromise standards and quality.


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