Authors : M. Bamiro Olasunkanmi
Abstract: This study examines the effects of vertical integration and enterprise combinations on profitability 0of poultry farm in Ogun and Oyo States of Nigeria using descriptive statistics budgetary analysis and profitability indicators. The study data were collected through a combination of stratified sampling approach and purposive sampling method from 211 poultry farmers which consist of 110 non-integrated poultry farms 71 partially integrated poultry farms and 30 fully integrated poultry farms. Empirical evidence from the analysis reveals that relatively young farmers (below 40 years) own non-integrated poultry farms while older farmer operates partially integrated poultry farms and fully integrated poultry farms. All the 5 enterprise combinations show high profitability with egg production enterprise having the highest net farm income and profitability indices while the broiler production enterprise has the lowest gross margin and profitability indicators. The study further reveals that profitability increases with the extent of vertical integration in egg production and broiler enterprise while profitability decreases with vertical integration in broiler production enterprise.
M. Bamiro Olasunkanmi , 2007. Effects of Vertical Integration and Enterprise Combinations on Profitability in the Poultry Industry in Ogun and Oyo States of Nigeria . Agricultural Journal, 2: 397-404.