Determinants of profitability of dairy farming enterprises among smallholder dairy farmers in south-west Nigeria

Abstract

Dairy farming is essential to most developing economies, including Nigeria, due to its contribution to livelihoods in terms of food supply, income and employment generation. This study examines the determinants of profitability of dairy business among smallholder dairy farmers in Nigeria. Data were collected from 150 dairy farmers selected through a multistage sampling procedure and analyzed using descriptive statistics and the ordinary least square (OLS) regression method. The majority of the dairy farmers had primary education (45.45%). Most were married (92.91%), while many were economically active (60.67%). Most (50%) of the respondents had 7 household members and above and the majority (76.67%) had 20 years of experience in dairy farming. Age, vocational education, other forms of education, herd size and total production cost significantly influence the profitability of the dairy business. Major constraints include insufficient forage access, low-quality fodder and lack of credit. Feed technology training, health care management and dairy cooperatives are strongly advocated. Dairy cooperatives are also important for better bargaining in input delivery and better prices for output supply to the market. It will also enable the farmers to pull resources together and guarantee access to benefits like soft loans, literacy programmes, and social protection, among others.