Asian Journal of Economics, Finance and Management

Broiler processing in Nigeria is faced with the problem of insufficient utilization of available resources which contributes to low returns to investment, low turnover, and poor profit (sometimes outright losses) with consequent high rate of business failures witnessed among broiler processors in the country. This study was conducted to determine the profitability and technical efficiency of broiler processing in Rivers State of Nigeria. A total of 160 broiler processors were randomly selected in the study area. Data were collected using well-structured questionnaire and personal interview. Descriptive statistics and Cobb-Douglas stochastic frontier models were used to analyse the data. The broiler processing activities were dominated by females. Majority of the processors had formal education with mean age of 40 years and an average of 12 years processing experience. The socioeconomic variables that influence the processing of broilers are level of education and experience. The result of the cost and returns analysis of the broiler processors showed that the business is profitable at the prevailing interest rate of 11.50% with a net profit of N116,799.87 and return on investment was 30%. The mean technical efficiency of broiler processing was 60.82%. The major constraints of the broiler processors were insecurity, high cost of inputs, lack of access to credit and general economic condition in Nigeria. The study recommended that relevant government authorities in Nigeria should ensure quality control of processed chicken to ensure that good quality broiler meats that meets international standard are produced which will make broiler processors produce not only for local consumption but for export in other to earn foreign exchange. Government should also provide security and good infrastructure to lower production cost that will improve technical efficiency of broiler processing and increase their profits vis a vis their income and welfare.