Profitability of Cattle Fattening Enterprise in Maiduguri, Borno State, Nigeria

Abstract

The study determined the profitability of cattle fattening in Maiduguri. Data were collected from a random sample of 300 fatteners using well-structured questionnaire. The data were analyzed using gross margin analysis and stochastic profit production function. Analysis of cost and returns revealed a mean gross margin per cattle of N46, 581.63 with cost of feed accounting for more than 83.9% of the average total variable cost per cattle. This suggests that cattle fattening is highly a profitable venture and that cost of feed is the most dominant variable cost of cattle fattening. All factors used in determining the impact of variable costs on profitability were found to be negative and significant except farm size which is positive. Thus, increase in farm size will lead to increase in profit all things being equal. The lack of incentives, ineffective extension services and poor credit facilities were major constraints identified for cattle fattening enterprise.

Sustainability of Rural Small-Scale Farmers Using a Thematic Content-Fed Analytic Hierarchy Process

“…Despite the countless profitability benefits of cattle fattening yields, Jibrin et al (2023) reports that the feed needed for cattle fattening takes over 83% of the total variable costs, making farmers unprofitable in a profitable market [82]. Feed boosts dairy production and accounts for approximately over 70% of total expenses [83].…”

Profitability Analysis of Beef Cattle Fattening Businesses

“…This provision is made in fresh form without considering the dry matter content and the body weight of beef cattle. This cost can be reduced by formulating high-nutrient feed based on cheap, abundantly available local ingredients, thereby assisting in improving the performance of beef cattle fattening [2] [30]. Labor cost is calculated based on the prevailing wage in the research location, which is IDR 12,993/hour.…”

“…Consequently, continual efforts should be directed toward its improvement, as higher profitability ensures the longevity of businesses [31]. Achieved profitability reflects the effective use of resources [15] due to the influence of various factors such as labor [32], cattle breeds [33], feed quality related to weight gain [2], and medicine cost [34]. According to [2], profitability increases with decreasing variable costs, particularly feed, labor, and medicine, with a high number of fattened cattle.…”

“…Achieved profitability reflects the effective use of resources [15] due to the influence of various factors such as labor [32], cattle breeds [33], feed quality related to weight gain [2], and medicine cost [34]. According to [2], profitability increases with decreasing variable costs, particularly feed, labor, and medicine, with a high number of fattened cattle. Furthermore, profitability is the primary objective of any business, including beef cattle fattening, and is determined by calculating gross and net profit margins with operational efficiency [15].…”

“…Beef cattle businesses are crucial livestock sectors providing meat in Indonesia, significantly contributing to local economic and social development over the past decade [1][2][3][4][5], the population of beef cattle in the country reached 18,610,148 heads [6] with an average growth rate of 3.52%/year [7] and 1,343 heads in East Kalimantan Province, particularly Balikpapan City [8]. The livestock sectors have experienced dynamic changes due to the rapid demand for meat and processed products [9][10][11].…”