Comparative investment analysis of small-scale broiler and layer enterprises in Osun State, Nigeria

Baruwa, O. I.; Fabode, A Ololade

doi:10.2298/jas1903279b

Cited by 4 publications

(3 citation statements)

References 7 publications

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“…Vlaović Begović et al of purchasing 10 hectares of agricultural land for corn cultivation using several dynamic methods of capital budgeting with the following results and conclusion: the net present value of the investment is 43,415 euros, the internal rate of return is 9.91%, the profitability index is 1.22, which imply that this investment should be implemented. Baruwa and Fabode (2019) evaluated the investments in the layer and broiler production with results that showed that both investments are acceptable but the investment in layer production has a higher, positive net present value and the value of the internal rate of return compared to the investment in the production of broilers, as well as a shorter discounted payback period. Lopes Santos et al (2020) investigated two soybean cultivation systems using three different price scenarios and discounted cash flows of the investment (which includes the net present value method), as well as cost-volume-profit analysis.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Efficiency Assessment of Investments in Agricultural Production

Kuzman

Momčilović

Ercegovac

et al. 2023

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The purpose of this study is to assess the economic benefits of agricultural production and provide guidance to manufacturers and investors interested in agriculture. This paper applies dynamic efficiency evaluation methods i.e. net present value, profitability index, and internal rate of return, together with the sensitivity analysis that is useful in cases of market turbulences. The presented investment is purchasing 10 hectares of arable land and cultivating two alternative crops: corn and soybeans. Research results and projections imply that both scenarios are acceptable and economically profitable with the preference for the cultivation of corn giving better economic efficiency. This study can provoke further investment evaluations with dynamic capital budgeting methods in other crops or implementation of mechanization in agricultural production.

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Section: Literature Reviewmentioning

confidence: 99%

Economic Efficiency Assessment of Investments in Agricultural Production

Kuzman

Momčilović

Ercegovac

et al. 2023

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“…The research showed that the net present value of the investment is 43,415 euros, the internal rate of return is 9.91%, and the profitability index is 1.22, and they concluded that the investment should be implemented. Baruwa and Fabode (2019) investigated the investments, as well as a structure of costs and returns of the layer and broiler production investments in the state of Osun, Nigeria. The results of the research showed that the investment in layer production has a higher, positive net present value and the value of the internal rate of return in relation to the investment in the production of broilers, as well as a shorter discounted payback period.…”

Section: Literature Reviewmentioning

confidence: 99%

Efficiency evaluation of investment in expanding the capacity of the rubber industry company

Momčilović,

Vlaović-Begović,

Jovin

2023

Ekonomika

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The aim of this paper is to determine and evaluate the economic efficiency of investment of the company from the field of rubber industry in the injection molding press and tool, with which the company expands the capacities intended for the production of rubber seals. The effects of the investment were estimated using the payback period, as a static method of investment efficiency evaluation, as well as the net present value and profitability index, as dynamic methods. In addition, in paper was used sensitivity analysis, as a method for evaluation of investment in conditions of uncertainty. The obtained results showed that the payback period of the investment is 2.93 years, while the net present value of the investment is 149,914 euros, and the profitability index is 1.79. All the obtained results indicate that the investment should be implemented. In addition, the sensitivity analysis, whose focus was primarily to consider the impact of increased material costs, on the results of the investment evaluation methods used, showed that the project is acceptable in all considered cases, because it contributes to increasing value of the company.

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“…This country has the biggest layers and broilers industry and provides a promising business opportunity for technology providers, investors, and business experts [3]. Meanwhile, in other developing countries, such as Nigeria, poultry has a significant position due to its superiority in resulting a massive economic growth, mainly business opportunities for low-economic groups (4]. In addition, the Government of Pakistan is determined to improve its society's life quality, and prevents hunger and lack of nutrition by designing a productive, efficient, and economically-beneficial agriculture sector [5].…”

Section: Introductionmentioning

confidence: 99%

Investment feasibility and risk management of a small-scale layer business in the Province of North Sulawesi, Indonesia

Wantasen¹,

Umboh²,

Leke³

et al. 2022

GSC Adv. Res. Rev.

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The main expectation of investment in the layers production is to provide benefit for small-scale farmers, who have limited capital and deal with varied business risks. The purpose of this research is to know the feasibility of financial investment and determine an alternative scenario in dealing with risk for farmers in the small-scale egg-layer business with limited capital. The research, then, employed a survey method with a multi-stages sampling technique on 85 farmers of the small-scale layer business located in the District of Tomohon Utara. The City of Tomohon as the center of layers population in the Province of North Sulawesi. Data collection used a list of questions related to the research problem. Further, the use of financial analysis was by criteria of investment feasibility with the measurement of net present value, cost ratio of benefit, internal rate of return, and followed by sensitivity analysis related to business risk. The results of this research demonstrate that the total rate of layer chickens raised by farmers was 2,136 birds and the net present value (NPV) was IDR 36,213,611. Within the five-year investment, the cost ratio of benefit (B/C) was 1.05, and the internal rate of return (IRR) was 22.85 %. Under the current management of a small-scale layer business, performed by farmers, the layers business was feasible to deal with the risk of increasing feed price, increased mortality, and declining egg price, which those factors caused loss for farmers. Therefore, based on the sensitivity analysis, the small-scale farmers had to improve their daily rate of production of eggs by 76%, when the feed price increased by 5%, or the egg price declined by 5%, in minimizing and preventing loss.

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Comparative investment analysis of small-scale broiler and layer enterprises in Osun State, Nigeria

Cited by 4 publications

References 7 publications

Economic Efficiency Assessment of Investments in Agricultural Production

Economic Efficiency Assessment of Investments in Agricultural Production

Efficiency evaluation of investment in expanding the capacity of the rubber industry company

Investment feasibility and risk management of a small-scale layer business in the Province of North Sulawesi, Indonesia

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