ASSESSMENT OF THE POULTRY VALUE CHAIN OF COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT IN ENUGU STATE, NIGERIA

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ASSESSMENT OF THE POULTRY VALUE CHAIN OF COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT IN ENUGU STATE, NIGERIA

ABSTRACT

The survey was carried out to assess poultry value chain (PVC) of Commercial Agricultural Development Project in Enugu State, Nigeria. Specifically, the study described actors in PVC, ascertained the existence of linkages among actors in PVC, determined actors level of satisfaction with PVC, ascertained perceived benefits, constraints and perceived strategies for improving the PVC. The study was carried out in Enugu State, Nigeria. The population of the study consisted of all the actors (service providers, producers, processors and marketers) in poultry value chain that benefited as a group (CIGs) in ENCADP. Two service providers, 64 producers, two processors and three marketers were used for the study. Chairmen of the CIGs were interviewed. Questionnaire was used in data collection. Percentage, mean score and standard deviation were used for data analysis. Findings of the study revealed that all (100%) service providers provide information on how to use drugs and vaccines, training and advisory services; producers that reared broilers in 2010 was 51% which peaked (55.8%) in 2011 and declined, while 49% of them reared layers in 2010, which declined to 44.2% in 2011 before it peaked (50%) in 2014. The major marketing channels used by the actors include: individual consumers, wholesalers and hotels/restaurants. The study further shows that the service providers, producers, processors and marketers established linkage using face to face channel mobile phone and internet regularly. Strong horizontal linkages (M =6) exist between producers, while very strong horizontal linkages (M =8) exist between processors. Agricultural information shared by the PVC actors were availability of input services, government grant, procurement of credit from banks, meetings/existence of cooperative society and others. Furthermore, service provider, producers, processors and marketers were satisfied with linkage with other actors in the poultry value chain, commitment of project staff to actors, while the benefits of the PVC were enhancing the quality and quantity of products and services delivered, employment creation, increases return to investment and ensures actors access to improved breed of live birds and day old chicks. Actors perceived major constraints to PVC were inadequate power supply, poor understanding of the concept of value chain and poor transportation network, while the major strategies for improving the PVC were trainings on different ICT tools for making linkage, provision of required infrastructure, availability of source of credit and capacity building of actors in value chain. The study recommends the adoption of the value chain approach in private and government intervention projects due to its capacity to enhance agricultural and global competiveness. Achieving competitiveness requires cooperation by actors along the chain as well as within the links in the chain. Effective linkages in agricultural value chain require that actors should belong to social organizations that would enhance information flow and build trust among actors of the same or different link.

TABLE OF CONTENTS

Title page i

Certification ii

Dedication iii

Acknowledgement iv

Table of Contents v

List of Tables vii

List of Figures viii

Abstract ix

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 1

1.2. Problem statement 5

1.3 Purpose of study 7

1.4 Significance of the study 8

CHAPTER TWO:LITERATURE REVIEW

2.1 Commercial Agricultural Development Project (CADP) 9

2.2 Concept of value chain and VC analysis 16

2.3 Concept of agricultural value chain 23

2.4 Poultry value chain 33

2.5 Challenges and limitations of value chain approach 39

2.6 Strategies for value chain development 43

2.7 Concept of linkages in value chain 49

2.8 Concept of perception 54

2.9 Theoretical consideration 58

2.10 Conceptual framework 64

CHAPTER THREE: METHODOLOGY

3.1 Study area 67

3.2 Population and sampling procedure 68

3.3. Instrument for data collection 69

3.4 Measurement of variables 70

3.5 Data analysis 75

CHAPTER FOUR: RESULTS AND DISCUSSION

4.1 Socio-economic characteristics of respondents 76

4.2 Institutional characteristics of respondents 81

4.3 Features of actors in the poultry value chain 84

4.3.1 Employment profile of the actors 87

4.3.2 Marketing/distribution channels of actors in poultry value chain 95

4.3.3Wealth group of actors 97

4.4 Existence of communication linkages among actors 98

4.4.1 Frequency of use of communication channels for linkages 104

4.4.2 Existence and strength of horizontal and vertical linkages 109

4.4.3 Agricultural information shared and sources 115

4.5 Perception of the poultry value chain by actors 121

4.6 Benefits of the poultry value chain among actors 135

4.7 Constraints to poultry value chain 129

4.8 Strategies for improving poultry value chain 133

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary of findings 137

5.2. Conclusion 143

5.3. Recommendations 144

REFERENCES 146

APPENDIX: QUESTIONAIRE 162

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

According to Noko (2016) agriculture has been an important sector in the Nigerian economy in the past decades, and is still a major sector, despite the oil boom. The author reiterates that agriculture provides employment opportunities for the teeming population, eradicates poverty and contributes to the growth of the economy.

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