Assessment of the Economic Performance of Commercial Layer Poultry Enterprises in South East Nigeria

This study assesses the economic performance and financial management practices of commercial layer poultry enterprises in South East Nigeria, identifying key profitability drivers and areas requiring professional improvement. The commercial layer sector in South East Nigeria is a significant agricultural enterprise, but economic performance varies substantially across farms due to differences in management quality, input cost management, and market access. Understanding the economic determinants of layer farm profitability is essential for providing professional advisory guidance. This study uses a financial performance analysis methodology, collecting enterprise cost and revenue data from 45 commercial layer farms in Anambra, Imo, and Abia States through structured financial record reviews and interviews with farm owners. Key performance indicators including cost of production per dozen eggs, feed cost as percentage of total cost, hen-day production percentage, mortality rate, and return on investment are computed. Multiple regression analysis identifies predictors of profitability variation. Findings reveal that feed cost accounts for an average of 68 percent of total production cost, making feed efficiency the most important profitability driver. Farms achieving hen-day production above 88 percent generate return on investment exceeding 22 percent, while farms below 80 percent hen-day production show marginal or negative returns at current market prices. Market price volatility, seasonal feed cost fluctuation, and erratic electricity supply are identified as the major external risk factors. The study recommends standardised financial management training for layer farm operators and cooperative feed purchasing as the priority cost reduction strategy.

Keywords: layer poultry economics, financial performance, South East Nigeria, feed cost, profitability.