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UDC 332; DOI 10.18551/rjoas.2022-08.18
THE EFFECT OF COVID-19 LOCKDOWN ON PRODUCTION AND MARKETING OF DAY OLD CHICKS IN IBADAN SOUTH WEST LOCAL GOVERNMENT AREA OF OYO STATE,
NIGERIA
Babatunde Taiye Oluwasola*
Department of Forestry Technology, Federal College of Forestry Jericho, Nigeria
Babatunde Oluyemisi Omowunmi
Department of Wood and Paper Technology, Federal College of Forestry Jericho, Nigeria
Kehinde Abiodun Solomon
Department of Wildlife and Ecotourism, Forestry Research Institute of Nigeria, Nigeria
Babatunde Kehinde Oluwafemi
Department of Basic Science and General Studies, Federal College of Wildlife and
Management, Nigeria
Adamo Ibrahim O.
Department of Agricultural Extension and Management, Federal College of Forestry
of Jericho, Nigeria
*E-mail: sollybee2012@gmail.com
ABSTRACT
The study was undertaken to examine the effect of COVID 19 Lockdown among day Old Chick Producers and Marketers in Ibadan South West Local Government Area (Poultry hub) of Oyo State, through the administration of questionnaire and interpersonal interview to retrieve relevant research information. The socio-economic appraiser of the stakeholders revealed that participants are predominantly male(65%), married(61.0%), most are educated (88.0%) and were Christians (40.0%) and Muslims (60.0%) based on their religious faith. Effect of Lockdown on production (100%), reduction in price, cost of ingredients with consequential reduction in level of employment. The result also reveals that the cost of ingredients, was seriously affected before (80.0%), during (65.0%) and after (98.0%) COVID-19 pandemic respectively. The result shows that the mean of the total variable cost is N28325.98, the mean of the gross margin is also positive (N322307.44), the net income is (N 272380.21) while the mean of the total fixed cost is (N400428.00). This implies that the level of profitability of poultry production in the study area is profitable. Based on the findings, it has been identified that some factors are hindering the development of poultry farms as regards large production, which will cater for the entire population of the people in the study area and the nation entirely. It therefore recommends that government should improve on the loan credit guarantee schemes available for the public and ensure the availability of well-tested, highly productive machines and reduce cost of feed.
KEY WORDS
Impact, lockdown, marketing, day old chick, COVID 19.
In Nigeria Poultry industry has contributed significantly to enhanced protein intake, job creation, positively affected the livestock drugs production and marketing (Guéye 2000) Poultry contributes significantly to the human economy by providing food while also creating wealth by providing jobs for our growing population (Alders et al, 2019). The industry also serves as a take-up industry for other industries such as animal health industries (Omiti, 2015) It is focused for trial, due to the short generation interval of all classes of poultry, such as broilers, cockerels, breeders, and layers. This has created huge, wealth for the
stakeholders in the industry. It is a common practice in the study area, to produce day old chicks, twice a week (Monday and Thursday). It is worth being studied, due to the status of the local government as the supply hub for day old chicks in Nigeria. A preliminary survey, through interview of the practitioners revealed that the supply coverage of the market in Southern and Northern Nigeria.
The research team taught it fit to evaluate the impact of lockdown on the industry on production, marketing, multiplier effect, incurred, benefits derived and lessons learnt during the period. The experience recorded was negative and positive. Manufacturers reported during the period the period an upsurge in the production of nose cover, disinfectant producers also had improved revenue generation (Clements 2020). In most production sectors, depressed sales were recorded, vehicles movement was restricted, except those on essential duties (Dan-Nwafor et al 2020). Essential duties during this period were classified and periodically announced by the tax force headed by the secretary to the government of Nigeria. At the initial stage, those allowed to move without restriction were medical practitioners and vehicles attached to such duties, Poultry producers at this period were not on the list. Due to the importance of the poultry sector, the Federal Government included the sectors; this was relieved to the practitioners and the industry. There is therefore a need to prevent any shock created by the disease in order to sustain the production and marketing of day old chicks. The experience reported varies from one country to another. However, failure of day old chicks supply in Nigeria, will affect the farmers, hatcheries, marketing of chicks to the farmers (Kehinde et al, 2009, 2019) reported a significant reduction in income for hatcheries, marketers and feed sellers and consequential effect on transporters, veterinary drug marketers and other related operators. This was corroborated by (Evans, 2020; Middendorf et al, 2021) that significant reduction in sales resulted in glut and increased overheads. It is important to consider the effect of the global threats in Nigeria, in order to ascertain the specific effect on the sector and learn from outcomes on the right steps to be taken to ensure a more effective and pragmatic approach to managing such occurrences. Nonetheless, poultry is not affected by COVID-19 (Berkhout, 2020) and does not transmit it to humans, and the animal feed industry has been influenced by the worldwide closure of slaughterhouses, restaurants, and fast-food chains to avoid contamination among workers and consumers. The closure of processing plants could eventually result in the extinction of millions of animals (chickens, pigs, and cattle) (McDougal 2020). The effect of the COVID-19 pandemic and possibly hunger in most developing countries around the world. The COVID-19 pandemic has caused problems for both citizens and the rest of the world. As a result of the COVID-19 pandemic, it became necessary to investigate the impact of the COVID-19 pandemic on day old chick production and marketing. Because of the unexpectedly high cost of feed and field materials, the poultry farmer will make little or no profit during the pandemic.
Ibadan South West is a local government area in Oyo state, Nigeria. Its headquarters is at Oluyole estate in Ibadan. Notable areas include Ring Road, Oke Ado, Oke Bola, Gege, Born photo, and Isale Osi. It has an Area of 40km and a population of 282,585 at the 2006 census. Ibadan South West local government shares border with Ibadan north and Ibadan south east local government. The estimated population of Ibadan south local government area is hosting member of diver's tribe Chief of which is the Yoruba ethnic group. The Yoruba language in the area with the religious of Christianity and Muslim are commonly practice in the L.GA include banded farm, vital foods Nigeria limited, and the bucket cultural center.
METHODS OF RESEARCH
The population of the study is day old chicks' farmer in Ibadan south west local Government area of Oyo state. A preliminary head count was carried out in the area which comprised of three major hatchering which are ZARTECH, AGRITED and FORSIGHT The population was randomly represented by One hundred (100) registered day old chick marketers adopted for this trial for an objective evaluation of situation report. The data was
analyzed by descriptive statistic such as frequency, distribution, and Budgetary Analysis was used to analyze the cost and return of day-old chick in the study Area (Okute, 2014). Gross margin:
GM=GFI-TVC
Where: GM = Gross margin, GFI= Gross farm income, TVC= Total variable cost. This was analyzed by using linear regression:
Y= X1 + X2 +X3+X4+X5+Xn
Where: X1= Type of birds, X2 =Educational level, X3= Sex, X4= Labour size, X5= Labour, X6= Fixed cost, X7= Cost fed, X2 = Cost mean.
RESULTS AND DISCUSSION
Age profiling of the respondents revealed in table 1 that day old chick marketing is undertaken by adults, with ages between 20 to 50 years and above, however most of the practitioners (55.0%), were within 31-50 years. It is also dominated by male (65.0%) and most respondents were married (61.0%). Most of the respondents (88.0%) had formal education, which ranged between primary and tertiary educational attainment. Their profiling based on religion shows that they were Muslim (60.0%) and Christian (40%). The outcome also shows that household size ranged from 1 to 9, while most had (4-6) members.
Table 1 - Socio-Economic Characteristic of the respondents, n=100
Variable Frequency Percent
Age grouped
20- 30 years 19 19.0
31-40 years 28 28.0
41-50 years 27 27.0
Above50years 26 2.0
Sex
Male 65 65.0
Female 35 35.0
Marital status
Single 34 34.0
Married 61 61.0
Divorced/separated 5 5.0
Educational level
No formal education 12 12.0
Primary education 42 42.0
Secondary education 18 18.0
Tertiary education 28 28.0
Religion
Islam 60 60.0
Christian 40 40.0
Household size
1-3 24 24.0
4-6 73 73.0
7-9 3 3.0
Total 100 100
Source: field survey, 2021
The personal data analysis of the respondents aligned with the findings (Adelore et al, 2006) that poultry production is undertaken by adults and that most participants are educated, due to the requirements for precision of operations, such as vaccination, feeding regime and the need for careful observation (Sofoluwe et al, 2011), also corroborated that there is need for education to improve operations and skill of doing business especially in poultry. The operation family size and marital status assessment revealed that most are married , this view was supported by (Babatunde et al, 2019) that family members are explored for labour in agricultural ventures; since most operations are subsistence.
Table 2 shows the results of the analysis of the impact of COVID-19 on the day-old chick market showed that the price of day-old chick was seriously affected before (75.0%), during (60.0%) and after (96.0%) respectively. On the cost of ingredients, results showed
that cost of ingredients was seriously affected before (80.0%), during (65.0%) and after (98.0%) COVID-19 pandemic respectively.
The results of the analysis of the impact of COVID-19 on the day-old chick showed that majority (95.0%) of the respondent's production were affected by COVID-19 pandemic. None of the respondent (100.0%) employed during the pandemic, about 97.0% did not have other means of survival aside the poultry during the pandemic period. About 99.0% of the respondents experienced cost of materials before/during/after COVID-19 pandemic in the study area.
Table 2 - Impact of COVID 19 Lockdown on Day old chick Market
Impact of COVID-19 pandemic on day old chick Frequency Percentage
Price of day-old Chick Before COVID-19
High 75 75.0
Low 25 25.0
Price of day-old Chick During COVID-19
High 60 60.0
Low 40 40.0
Cost of ingredients before COVID-19
High 80 80.0
Low 20 20.0
Cost of Ingredients during COVID-19
High 65 65.0
Low 35 35.0
Does Pandemic Affect Production
High 95 95.0
Low 5 5.0
Did you Employed During COVID-19
High 0 0.0
Low 100 40.0
Total 100 100.0
Source: field survey, 2021.
Table 3 - Budgetary Analysis of Poultry Farming Enterprise
Inputs Minimum Maximum Mean
Cost of birds 160.00 220.00 196.6286
Cost of feed 1,210.00 1,500.00 1,413.9286
Transportation 2,000.00 4,500.00 2,926.0000
Cost of labour 4,500.00 7,200.00 5,937.1429
Water cost 2,080.00 2,500.00 2,494.0000
Medicine 2,000.00 42,000.00 4,752.1429
Vaccination 3,400.00 35,100.00 7,155.0000
Veterinary service 1,500.00 3,500.00 3,451.1429
Total variable cost 1,9973.00 70,280.00 28,325.9857
Cost of cages 1,5000.00 37,3500.00 184,321.4286
Feeder 3,850.00 34,150.00 9,268.7143
Drinker 3,850.00 39,000.00 9,307.0000
Water tank 1,100.00 24,000.00 2,096.1429
Lantern 130.00 500.00 494.7143
Cost of poultry pen(s) 1,9500.00 280,000.00 194,940.0000
Total fixed cost 98,600.00 663,650.00 400,428.0000
Total cost 13,0690.00 693,085.00 428,753.9857
Total revenue 51,200.00 1,050,000.00 350,633.4286
Gross margin 19,555.00 1,017,910.00 322,307.4429
Net income 50,640.00 919,310.00 272,380.2143
Total fixed cost 98,600.00 663,650.00 400,428.0000
Total cost 130,690.00 693,085.00 428,753.9857
Total revenue 51,200.00 1,050,000.00 350,633.4286
Gross margin 19,555.00 1,017,910.00 322,307.4429
Net income 50,640.00 919,310.00 272,380.2143
Source: Field Survey, 2021.
The mean of the total variable cost is (N28325.98), the mean of the gross margin is also positive (N322307.44), total cost is (N428753.98), total revenue is (N350633.4286), the net income is also positively signed (N272380.21) while the mean of the total fixed cost is (N400428.00). This implies that the level of profitability of poultry production in the study area is profitable. The coefficient of educational level of the poultry farmers was statically significant and positive in determining the profit of the farmers in the study area. This implies that there is a positive relationship between educational levels of the farmers and their profit in the survey area. This implies that increase in education of the farmers will lead to increase in the profit of poultry farmers in the survey area.
Table 4 - Linear Regression Analysis of Determinants Factor Affecting the Profitability Levels
of the Poultry Enterprise Farmers
Variables Co-efficient t-value
(Constant) 0.229
Type of birds 0.010 0.800
Level of education 0.000** 2.029
Sex 0.006 0.453
Day old size -0.014 -0.919
Labour 0.008*** 2.535
Fixed cost 0.001 0.106
Cost of feed -0.019 -1.238
Cost of vaccination 0.007 0.543
F-value 834.609
R Square 0.994
Adjusted R Square 0.992
Source: Field survey 2021; 1% Significance level= ***, 5% Significance level= ** and 10% Significance level= *.
Table 5 - Constraints Faced by Day-Old Chick Farmers
Constraints Major Freq. % Minor Freq. %
Infrastructural facilities 67 67.0 33 33.0
Insufficient money/stipend 93 93.0 3 3.0
Labour 45 45.0 55 55.0
Government policy 60 60.0 40 40.0
Taxation 25 25.0 75 75.0
Price instability 80 80.0 20 20.0
Cost of tools and equipment 95 95.0 5 5.0
Environmental factor 76 76.0 24 24.0
Source: Field Survey, 2021.
The coefficient of number of labour used by the poultry farmers was statically significant and positive in determining the profit level of the poultry farmers in the study area. This implies that there is a positive relationship between number of labour used by the poultry farmers and their profit. This implies that increase in number of labour used by the farmers will lead to increase the profit of poultry farmers in the survey area.
Table 5 showed that majority of the day-old chick marketers in the study area (67.0%) were being confronted with the problems of Infrastructural facilities, about 93% were being faced with the problem of Insufficient money/stipend, 60.0% with Government policy, 80.0% with price instability, 95.0% with cost of tools and equipment while environmental factor represented 76.0% respectively.
CONCLUSION
This study was carried to assess the impact of COVID 19 Lockdown on day old chicks marketing. The study reveals that majority of the respondents were youth and married and the enterprise was profitable. COVID 19 had a negative impact on all operation of day-old chicks market ranging from high cost of feed, problem of infrastructure facilities are insufficient capital and government policy.
Based on the above findings, it has been identified that some factors are hindering the development of poultry farms as regards large production, which will cater for the entire population of the people in the study area and the nation entirely. The following are recommended for high production and improved profitability level in the study area:
• Government should improve on the credit guarantee schemes which they have made available to the public. It is in recognition of the strategic role of the poultry farmers and entrepreneurs in national development, that the federal, states, local governments, and even some corporate institutions are continuously creating the enabling environment to enhance entrepreneurship;
• Government should also ensure the availability of well-tested and highly productive machines and reduced cost of feeds;
• Availability and adequate supply of Animal Drugs to the study area will also enhance the production of poultry eggs.
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