WWI—.i—fl ECONOMICS OF COMMERCIAL EGG PRODUCTION IN EASTERN NIGERIA Thesis for the Degree of Ph. D. MICHIGAN STATE UNIVERSITY MARTIN H. BILLINGS 1971 LIE R A R Y Mzcl’zigan State a University This is to certify that the thesis entitled The Economics of the Commercial Egg Industry of Eastern Nigeria presented by Martin H. Billings has been accepted towards fulfillment of the requirements for Ph. D. degree in Agric. Econ. Major professor Dam February 26, 1971 0-169 ABSTRACT ECONOMICS OF COMMER CIAL EGG PRODUCTION IN EASTER N NIGER IA By Mar tin H. Billings The Regional Government of Eastern Nigeria initiated a commercial egg scheme in 1960— 61 to provide a cheap animal—protein food for urban dwellers and to introduce a modern industry into the rural sector as a part of its deveIOpment strategy. The project represents an attempt to implant a sophisticated biological technology from the United States into a quite alien economy and environment. The results have been mixed, although real accomplishments have been scored. By mid-1967 a sizable, largely Nigerian- owned and operated industry had grown up. However, even with subsidized inputs, commercial eggs failed to become the cheap food originally anticipated, and many private poultr ymen have either failed or seem likely to fail. In part this failure derives from limitations in the market for eggs: in shortages of supplies of quality chicks and feed, and the widespread use of dual-purpose birds, but mainly they seem to stem from deficiencies in management by the poultryme-n. This study is an attempt to examine, identify and quantify the problems existing on commercial egg Operations of various types in the region. To “mama“: this, an enumeration of 100 poultry operations was conducted , . f information on which to prepare an extensive “-dqvclop a foundauon o farm management inquiry. Some 21 farms with 33 flocks were Subsequently studied os/er a. period of six months. Daily farm records were kept of each flock which represented the two most typical lines in the region: RIR and Thornber 404 hybrid. Finally, a survey was conducted in four cities into egg eating habits. The study showed that farms of all sizes, if preperly located, can produce positive net mar gins given priCes for inputs and product prevailing in the region. However, management seems typically quite poor on units less than the largest studied size group. Most of the best—one-third producers are large (more than 600 layers); use hybrid stock and follow superior flock management practices. However, farms of all scales were found to be over invested in housing, over-staffed, and poorly sited. Under present conditions a decline in egg prices below 3/9 (. 52¢) per dozen would threaten the economic lives of most of the regions of poultry operations. The consumer survey showed that although eggs were a widely accepted "superior" food, less than twenty percent of the urban respondents were consuming one egg a. week, the region's minimum consumption objective. The analysis suggests a policy of phased withdrawal on the part of the MOA from the commercial egg scheme, but one designed in such a way to protect insofar as possible the public investment in the industry (eithnated to be in excess of L 5, 000, 000) and public confidence in future agricultural development schemes. The following steps are recommended. First, hybrid stock be made available on a large scale. Second, the . 7 ': 7‘ ion service in c:00peration with the land-grant university develop . ‘ ‘2; :1 3 . and make available suitable farm management materials, assist in the training of poultr ymen in their use and interpretation. Third, end the subsidized feed supplies at some date sufficiently in the future (say two years) that serious poultrymen have a chance to digest the first three changes. Thereafter the MOA should let the chips fall where they may as regards individual producer survivability. This scheme would give reason to expect about a third of the present producers to survive, these being the larger typically, the better managed and the best located. A s the economies of commercial egg production argue for increased scale it would be reasonable to expect a slowly growing egg supply (in excess of that presently produced by 350 Operations) and falling egg prices. With good management a very large number of the remaining producers should be able to approach a 3/- (. 42¢) per dozen price. This will not satisfy the regional objective but will provide a solid foundation from which to expand as urban incomes rise. ECONOMICS OF COMMER CIAL EGG PRODUCTION IN EASTERN NIGERIA By it 9/ Martin waBillings A THESIS ._ Mir” Submitted to i ‘ Michigan State University flal fulfillment of the requirements . for the degree of .211)“ VI: ' ' ‘2 Ln DOCTQR OF PHILOSOPHY L ' .. W ’efl c“ ACKNOWLEDGEMENTS This thesis was prepared as an economic analysis of the commercial egg scheme of Eastern Nigeria. It has, however, become by force of events, a historical piece as well. Eastern Nigeria is extinct as a political unit both by its own choice, through secession, and by act of the federal government dividing the region into three parts. The government and the principals involved in the scheme are unlikely to Survive the event. It is very unlikely that a poultry industry now exists. It is hard to conceive that many producing units, or the Supporting infrastructure are still intact. Bitter combat has occurred in the very locales where the poultry scheme was most dynamic and the outlook consequently most hopeful. Nonetheless the experience of the industry and the reasons outlined for studying it remain valid. The thesis was made possible by support provided by the Economic Development Institute of the University of Nigeria, Enugu. Many persons in Eastern Nigeria made the collection of data possible, often at considerable inconvenience to themselves and in the later Stages‘at some risk. To all of them I offer my thanks. Both with regard to my choice of academic Specialization and to the not inconsiderable amount of effort that was expended in -ii- . . "’ - s " - , - .-. '- .y.. .- " - _ _ Ova-v, ‘H' .0 -:"—‘ '5 ...’. w - "l |-. ’.v ‘ " , _ 'K'.oo ., . .- - ' 13'”..g'.' ’ --- " ... -‘ ‘o -0 ,,.¢... '. ‘ "I. v' :-:..:.-, .... -.; \ l. -T " t.” f.“ on“ .5..;-. -"‘ ‘. ;.... \{-\Il";.. .-.. .‘.s-'.oonu-.' u. . . I r -. g ‘ -go 'I ' ill no-9-v-.. . I" o i . I a g ~‘z’l " "0“. .4. .-..," q o l , . o. :" \‘v- up. —. -. O... ‘— un.u~.. do ‘3 .. - y- = ‘ l 4 " O a..‘.»- ‘2‘. - A, ‘ v . ‘;‘ W; o.--’ ‘¢.. 7‘ - _ ..- “Ha. .. :. .., '_ . ‘ .‘, fi.‘:“.‘_- 9 ~ u... .e we ‘ L ' § .‘ _ “;—..n_u ‘Ao- - .""‘\V:. 4";- fi .,‘ - iii- reviewing the manuscript I would like to thank Dr. Marion Forrester who gave me the idea, Dr. Carl Eicher who got me started and Dr. Lawrence Witt who saw me through. In addition, Dr. Charles Sheppard, Dr. Slyvester Ugoh, Dr. Samuel Attah, Mr. Frank Moore, Mr. G.I. Jones, Mr. Russell Gillham, Mr. Leslie Elmslie, Dr. Anita McMillan, Mr. Uno Udosen, Dr. Frank Siccardi, Mr. Herbert Kriesel, Mr. D. N. Ajaegbu, Mr. P. C. Odeluga, Mr. A.A. Amantu, Mr. M. Okagbue, Mr. Arjan Sadhwani and Dr. Arjan Singh provided invaluable assistance. Special comment must be singled out for Mr. Y.R. Chhabra who single-handedly typed the final manuscript. I have also learned to appreciate the final traditional gesture to one's wife who provided irreplaceable typographical and moral assistance. ,. Os- H; :.-: wet." O ‘- -c' I -‘ .r"..: .‘--- A“, .- a- . "a. 4‘; an. A ' o. P' H . V- . ... 0...: A ‘ ’0 w: p . V-c‘ .- 1. ”‘t A .- - . "o . J‘ L AW: .‘a, \I. ,3--- b «'7. ‘VI-I F . 'o . .IC . -. g \ an.-. '\ r——_'\' -iv- This thesis is dedicated to my students at the University of Nigeria, Nsukka, and: I, Mbalonye Okagbue Sunday Nwachukwu Cyprian Muojindu Felix Nweke A.S. Oruche Danial IkWegbu Christopher Mbacci Benedict Onah and Oddjob Who did much of the work. "What passing bells toll for those who die as cattle? --Only the monstrous anger of the guns, --Only the stuttering rifles rapid rattle, Can patter out their hasty prayers". Anthem for Doomed Youth Wilfred Owen ) 1915 A. ~—- .. - h \ .4-oa-.~ ‘a :- ‘ u- a "ufitov. Q All values appearing in this thesis are expressed in Nigerian currency (Pounds, Shillings and Pence) fOIIOWed by a conversion in dollars and cents. 12 pence (d) = one shilling (l/-) 20 shillings = one pound (L) The conversion rate as of April 4, 1967, the date of ‘my departure from Nigeria was as follows: (Nigeria is a member of the sterling area). 1 shilling = . 14¢ 1 pound $2. 80 v. ' ‘. ,gt. .4 '< "‘-*"""""‘-‘.I'_‘\' ‘ o a ‘fi'. .A_.‘.Ju~.'..1.‘.- . --'- Au- ~A‘.-.‘“-Q ' 0 I u ‘ ‘ -~.-- in Vv-‘au. .u.. "I. "fl—-.o~. s _- no. .. ..._~ \ I. . -' J. ‘5d.. 0‘ “" 0000.. ‘N no»«.. an -\ "VIOOOQq \ Til-g ‘ .'..‘.' «a». .UO.......‘ -‘... fi'--"~l.‘)fl"' _ ‘ .- t| o... '“vv..r- ‘ A; .. ‘0 v’. '_\_‘_ 5" ‘ " ~1ka f . 2 (a -.‘ . Vu'.\_..' ll 1. S: . Q . ~‘.‘ 'I a' '\-P"._ . en‘sa g.‘.'~'/ . v\~.\..‘_.- “ML-3 "v 1 9 1" . ....: 7 -. '0 .“V t .1, D A u. b C . ' 3‘ ‘ 3 ~. .. I .-": A .. 0.. . K N \ u A CKNOWLEDGEMENTS TA BLE OF CONTENTS TABLE OF CONTENTSOIOOOOOOQIIOOIOOOOCOIOIOOIOCCOIOI LIST OF TABLES IOIOIOOOIOIIOO0.00.00.00.00.0.0.0.... LIST OF FIGURESO...IOOOIIOCOIOOIODOOODOOOOOIOIOOIO. LIST OF MAPS I00....O0.0.0..I.QIIOOIOOOOOIOOIOIOIOOC Chapter 1. INTRODUCTION0.00.0...Ono-OIOOOIICIOIIOOO 1. 2. 3. 4. Objective ofthis Thesis............... Background.......................... Specific Objectives of the Thesis ....... Summary of Previous R esearch . . . . . . . . 2. THE INCEPTION OF THE COMMER CIAL EGG INDUSTRY OF EASTER N NIGERIA . . . . . . . . . l. 2. 3. Introduction.......................... The Beginnings ....................... A. Introduction and Selection of Stock . . . B. Selection of Husbandry Technique . . . . C. Pre-conditions Satisfied . . . . . . . . . . . . The Apparent Need for the Industry . . . . . A. The Political Setting ............... B. Nutritional Needs of the Region . . . . . Page 21 21 24 I u o o I .- I on o .0 u a. o. u . u o I O a on t u ‘ - o . - ¢ 0 n - o u o o no on. c o. .00 no on a . on O. I - o c v . o c c s o- ne 0 II. o- 0.. . 0 . '9 a l o o o o o o n o .o o o n . . o a u o u o n o o . I a o u . a o o s I. I o o o a . n n o u . 0.. o c u o a g n o o no u u... a on a o o u o. o o. o on... s . I O i.. '.I I .0 I '9‘ I Q I C C I I Q. o D O. ‘ . . . . . - . n . u o o I I a ' I ~ r a . 0‘. . t o . o n g .. o c. o \ - I i . - . . . A . u u - . . . . . ' .. - c K . . ~ .. 0.... CI - O | ~ A a I t . O o n \ . u ‘ c Q .\ o \ e D , . . . u . \ . . I. O.\ . . . . n . . . . ‘ u u‘ v . . . .. . > V O a ‘ I I , — m,» .J-~- ‘ W .- 'q' d. .H- ,— C . ' . . .... A q ‘ n. - ‘i ‘. go so: ' c-u- —A.\-o-v.~ ‘ -. _‘ ‘U sn- v11.'ahoc . supp ""\""‘"' ' . uvv .o‘U so, no 0 h'.’ .- 0. §~--a . I '- . -. MK‘ 4 i C, O..- 4. ...,., A l l o .I,.'. a v ‘- ‘JO r- C - ,. . Act 3 w- l, . .0. F w I A... . r ~ a. . 0, ~ t.. . 1 C .. I 9.. ‘2‘ ¢,' Sim... ‘\-‘ n h. ‘n. n.- ' 9. .H‘ ‘ H I- I c .. 5“ .I It“ I ~ a... I ~. I". ' a. ,A‘Il Chapter - vii- 4. The PoultryProject................ A. Decisionand P1an............... B. The Scheme Begun - 1959-61 ..... C. Foundation and Growth . . . . . . . . . . . 5- summary00-0...Ito-oaooooooooooono 3. THE ORGANIZATION OF THE COMMERCIAL EGG INDUSTRY........................... 1. Introduction........................ 2. Economic Geography................ 3. Outline of the Productive Process . .. . A. Maize Production and Marketing . . B. Provision of Poultry Rationing . . . . C. The ChickInput................. D. The Veterinary Factor ........... E. The Credit Factor ............... F. The Producer of Commercial Eggs. . .0 Marketing Commercial Eggs . . . . . . H. Theconsumerconcise-outcoooooo 4. SummaryI.0.CIO'OOOIICOOOOOIOOOOOI 4. THE PA TTERN OF EGG CONSUMPTION IN URBAN EASTERN NIGERIA soon-oneness...- l 2. . IntrOdUCtionnooooooocOOIooooooo-oooo Family Income Patterns in Four Cities of Eastern Nigeria cocoon-ooooooooo Page 29 29 35 37 44 46 46 46 53 54 55 57 62 65 66 69 77 78 80 80 81 . n a 2' Q 40:."“ . F of . ‘90.- I -00.- .A"“?: . - II Act. VJ""““. A- —‘.-.‘ us-.. . . ‘ .. o >- Us .0- .. ”O . . . v-O. " ‘. .i... ‘ 7 'V H -v— .. . .G-r . A. 2 g. 0 C Q ~ us do I ‘0 . hf‘a ’0 Lvll‘ A a. \J fit. .- A x... at A. p» y. Chapter 3. 4. 5- Summary0....Colo-oaoocooouoooooloo - viii- Food and Egg CUnsumption Patterns in Four Cities of Eastern Nigeria . . . Characteristics of Egg Consumers . . . . 5. THE COMMERCIAL POULTRYMAN - A STUDY OF ENTREPRENEURSHIP .................. 1. 2. LA) 4. 5. 6o 6. COST OF OF A REPRESENTATIVE PR ODUCING FLOCK. . 1. Inuoductionoooooocoloouocootoooooca Z. 3. Introduction ........................ Planned Role of Entrepreneurship . . . . A Portrait of Two Poultr ymen . . . . . . . Characteristics of Poultr ymen . . . . . . . The Poultryman of Eastern Nigeria - AnAppraisal IOCCOIOOUICCOCOIOIOOO Summaryoonoooooosooo'ooococoon... PR ODUCTION AND PR OFITA BILITY A. Intent of the Chapter ............. B. Methodology Used in the Chapter . . Budgeting - Its Purpose and Method . . Variable Costs in Egg Production . . . . A. Characteristics of the Synthetic (Representative) Egg Producer . . B. The RepreSentative Synthetic Farm C. Variable Costs of Production . . . . . Page 83 99 105 108 108 109 111 117 150 155 157 157 157 159 160 164 165 169 171 . O ' 7 . . , . . . C t . o . o u , ' . . . . . - , . o - 0 ~ . . ~ - | u . . - - . a . . - . . . . . . . a - a n u . . . . g o . o . a a - a . . . o e a ‘ . - v - - A o 5 a ’ n I o O I I O . . . a o . o - O n . O - O ' e < u - a o o a n , . . I I . . o ‘ I . o u o - . . o . I ~ . » . v Q A - . I . c - o x i Q . ‘ 9 a o . ~ . . . - - o a u u s q I A I o I . s - a . Q - ‘ o . . - . . . a s - ~ s . . . -ix- Chapter U . Costs of Production Calculated for a Representative Flock . . . . . . . . E. Total Cost of Production of a dozen Eggs 0......OOIOOOOOOIOOOIOOOIIOO F. The Gross Margin for a Representative Farm I O I O C O O I O I O O O O O O I O . O O C O O O O O G. Calculation of the Net Margin . . . . . . . 4. summary 0 O O I C O O I I I I O C I O O I I O I I O I I I O O I 7. PROFITABILITY OF COMMERCIAL EGG PR ODUCTION IN EASTERN NIGERIA . . . . . . . . . . 1. InuOduCtionsosou-noncooo-co-oooooeooc 2. Calculation of the Gross Margins for the Studied Synthetic Enterprises . . . . . . . . 3. Calculation of Net Margins for the Studied Synthetic Enterprises . . . . . . . . . . . . . . . 4. Factors Affecting Farm Efficiency ...... 5. SummaryOOOOOOOOOIOIOUOOU00.0.5.0... 8. ECONOMIC CONSIDERATIONS AND ALTERNATIVES OPENTOPUBLICPOLICYOOOOOOIOIOOOOCOOOO l. IntrOdUCtlon......................... 2, Public Policy and the Commercial Egg Industry OIIOIUIOOOOIIOOOOOOOOI 3. Public Objectives R econsidered . . . . . . . A, If No Change Occurred in Public 1 Palicy00....OCCOCOIOOIOOOOOOOUI B. Withdrawal from the Industry . . . . . Page 172 175 176 184 185 205 213 222 222 222 228 232 233 r I -’.> .- ... 00“- O " : q n .. _ d. yd ' -" . ..- .Hev ‘nfi \ \I\l_‘ ‘ x ‘J .u ~.-’--'—..‘x . no . i : n... . A. ~‘ -n «.4 “.‘.-~"I"'-‘- I '4..— .h-‘U‘..I.. ... .-S— u H u -1 . .., o ..--""'\. q " -. ~< ..~-‘v~5 .J v- ‘ ' ‘\ -.__ "“v‘. ‘ | ._'~A¢‘ () v 1 ‘- J--"—‘.‘. s....flue.\ 3 \" l ‘1 Chapter APPENDIX A APPENDIX B APPENDIX C APPENDIX D 1 APPENDIX E 4. The Policy Proposed by this Study . . . . . 5. summaryIIIIIIIIIIIIIIIIIIIIIIIIIII 9I SUMMARY AND CONCLUSIONS IIIIIIIIIIIIIIII 1. Summarya...Cocoooloounooolooloucol 2. Conclusions........................ BIBLIOGRAPHY IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Outlays Incurred by the Government of Eastern Nigeria on Behalf of the Poultry scheme canon-000000.... The Maize Problem outooooo-o-ooooo Entrepreneur ship in the Hatchery Segment of the Egg Industry . . . . . MethodOIOgy I I I I I I I I I I I I I I I I I I I I I I I Phase I I I I I I I I I I I I I I I I I I I I I I I I phase II I I I I I I I I I I I I I I I I I I I I I I Selection and Training of Enumerators for Phase land 11 canoe-ocean- Phase III - Consumer Survey . . . . Questionnaires Used in Gathering Data for the Poultry Study ........... PhaseIIIIIIIIIIIIIIIIIIIIIIII PhaseIIIIIIIIIIIIIIIIIIIIIIIII PhaseHIIIIIIIIIIIIIIIIIIIIIII Page 234 236 239 239 245 248 254 260 275 279 279 281 290 292 295 295 308 313 .n‘ t' ‘ _ v...‘ .G‘V"... " ‘_,. l . _‘.'.‘.~b I ---‘-¢-.’V‘ I" .11. ‘ I ‘ . .. -.-. out U .. WU! F Estimation of Feed Consurnption by Layer and Grower Flocks in EaStern Nigeria IIIIIIIIIIIIIII APPENDDC (3 Supplemental Tables ............... 5.: 85 A,, a: )u.. Page 320 325 -4.‘A“-. . . . . “"-.'Y:"$$T‘ . ‘gm. ' I ”4 n 0" ‘0' ‘ I ' I v ‘a....“- “gs, I e- ". a I . .J’“ o. -vv~ H, r- .Nu..l..,_,. . o. . V"l'~‘-r.-. .. ‘dLo.,,~‘- T I w. ' .. FF. - .N‘ba a... od- .- 32' p302 _ I~‘ u I A 1"" u 1" u ., 'I V . ‘C be’. .-~.. etc. \ "v- , o ““8725 9' ." ' \— L‘. . ~v"”I°- ' “'2‘“ «"1 :, t... v. ‘- I‘F - _ _ air-U..CG“UUS a -xii- LIST OF TABLES Annual Egg, Feed and Chick Production in Eastern Nigeria 1961-66 IIIIIIIIIIIIIIIIIII Number of Hens and Levels of Egg ProductiOn (est. in dozens) in Eastern Nigeria ' since the Beginning of the Commercial Egg Scheme 1961-66 ........................... Poultr-ymen Possessing 100 or more Birds - by Prov’ince in Eastern Nigeria- .oocoooooooooooo Total Annual Feed Production in Eastern Nigeria byPrOducer IIIIIIIIIIIIIIIIIIIIIIIIIIIIII Total Annual Output of Chicks up to December 1966 in Eastern Nigeria by Commercial and Public Hatcheries...IIIIIIIIIIIIIIIIIIIIII Problems of Obtaining Veterinary Services - Reported by Respondent Poultryman . . . . . . . . '- Applications for, and Awards of, Credit for Poultrymen in Eastern Nigeria . o o o I u o o o o o o 0 Eggs Graded into Stock by the Eastern Nigeria 'Marketing Scheme, April 1966 to June 1966 . . Intake and-Sales of Eggs by the Eastern Nigeria Marketing Scheme, April 1966 to 's’e‘P’tember1966II....'II.I...’...III.I.II. E‘fices ’Paid and Asked by Marketing Scheme .,’\ “gm November 1966 oooooooooooooooooooooo Page 40 41 52 58 60 64 67 74 75 76 w-r. .o.. g! ' . ». F.....\A.e F 93¢.-~s4 v. 5;. V -‘ ' “-. r...‘ " .- gbc:~ V. Croatzex: J. ‘u..,.o' . C How‘uool‘- u “J";gr bu UT-gttec v. f. - ”_. V\.n:o.i.L p» " - ; WTAL‘ \'.' ' than K... o- . IF l... . ~no¥°..'-. ‘ H h. “ficv-V pm ..\ ‘-~~,,~‘ .. I ‘ I ’ 0-. “(3.6 P. O Ra f‘ M u U. ~~‘ V 0' . he' ‘. -_ ‘ “"3“ .u. .. K . ‘ U' c.‘ s‘:.c..~::> ’ Mg”) » .32! 'A’ Lg, .. I‘- ~- . 'v ~> A. Co.‘ J1...“ ,. ‘-‘~.‘ ". ¢ .\ .. .x“‘ ‘. ‘_.“_ 3': ‘ o. “‘5 .;. v ““ K .4 .— ' v- ‘Q. ‘ Hi, i g ,u.‘ or did A C -. a. 1v- a ‘e. \h V-.... Table 4-4 4-10 4-11 4-12 4.13 5-1 fif - xiii - Average Annual Family Income Among the Three Studied Income Groups . . .. . . . . . . . . . .. . . Comparison of Consumption of Food Staples in Four Cities .............................. Comparision of Consumption Habits between Income Groupings and Net Change Across the Income Range indicating changes in Proportions between Groups Reporting that they usually ConSumea good oncea Week................. Comparison of Consumption Habits between Educational Groups ......................... Why ReSpondents Said They do not Eat More Eggs . . Why Respondents Said They do not Eat Eggs . . . . . . Why Reapondents Feel Eggs are Good for Them . . . Rate of Egg Consumption in ReSpondent HouseholdsloOOOIOCOOOOOOOIOIIIIOOOOIIOUIOOI Relationship Between Income and Egg Consumption Per week.I...0......ICCIQOQCCICIIOOOOOIOOI Relationship Between Education and Egg Consumption per Week . How Often do ReSpondents Buy Eggs? . . . . . . . . . . . Where do Respondents Usually Buy Eggs? . . . . . . . consumption 0f Guinea FOW]. Eggs 0 o o o o o o o o o o o o 0 Distribution of. Ages of Studied Poultryman on 100 Farms in Eastern Nigeria ,.............. Proportion of Poultrymen Entering the Industry inseleCted Year COCO-OOIUOOOIOICCOOOIOOI.0. Page 82 85 87 90 93 94 95 97 98 98 100 101 104 118 119 q-- o .-. .‘N p ’ ';' ~ 0‘: Mr .4 .\~6"04' O . . P.... 7-.- . u . . U.t\.. u . o .. :v-n‘oh‘fi “ ..~,vsee‘--4 So . . n I “Q. .‘.."~.—.F .¥'d.‘. ....-oo 2'“ rnr'c..i uu- sue a--. . “It? ‘* ‘ -‘r .‘I‘ ~ A“: o\:oaookl -v.‘. I :‘a W“ -c = a o.» I L ‘v ad . ~ 0 ""t.‘ 0‘ Alt 0 “.'”' ‘ to’nL . cu- -..,. ‘ chhi‘... .; .- ""“J¢..La ‘ \ p0“ ‘v-nr. _ “u 1.. ' . n-.;A_- I ‘Csasou‘.a‘ £1.- 01123;”, b I' ’ - . 501mg Of 1: : LEE; 3:." "o. -fiv- Page Reasons for Entering Commercial Egg Production Givenby looFarmersICIOOOIOOOOOIOIIOIDOII 121 Proportion of Total Income Accruing to 100 Poultrymen from their Commercial Egg Enterprises O‘COCOIIOCCOOIOIIOO0.00.0000... 123 The Relationship Between Persons who feel that Poultry is (or is not) their Most Important Work and the Proportion of their Total Income derivingfromit........................... 124 Types of Off-farm Work held by Studied Poultrymen; showing distribution Between Farmers who did or did not consider Poultry as their Most i ImportantOccupation....................... 126 x Distribution of Vocational Background of Poultryman Reported by Province ............ 128 Vocational Experiences Over the Working Lives oflooPouluymen0.0...IOOOUOCOOCCOOOCCOOOO 129 ‘ Vocational Background of Poultrymen Keeping Records ona Per Flock Basis ............... Educational Backgrounds of 100 Poultry Enterprises. . Source of Information Used by Poultr ymen in Learning of the Poultry Business . . . . . . . . . . . . Entry Lag Reported by 100 Poultry Enterprises After Fir st Learning of the Opportunities inthe Indusuy 0....IOIOOOOOOICCOOOCIIIOOIIO Problems of Entry into the Poultry Business . . . . . Sources of Finance for 100 Enterprises Used rto Enter the POUIIIY Industry .ooooooooooooooo 'xéggo‘rzces of Loans Reported by Poultryrnen - - - - - ° - 7" ."'- . ‘ n C ." . ‘1 . C I O . . s .— o , - , . I I C . .. Q n . . .. .n, _ I O t.- v . C ‘s o 0 v . . .‘ .O I s . . .1 - n ‘ t 3 I l v c C . ' -- I_ . r . 0 a p .. . ' _ _. . .- .,. ~€ . . . , -. .o '- a . n . 'u s o A .- V e‘ :“"..‘5: ."__oo . O :o .‘"""" a-..~. ‘ 7-? ”’ . néu-c-" ' :.---v" " abovy' ..~.. - . I . 0- '.° ”a .6." ‘I on '9 l ... "O; \".’" ..~‘- b-V “‘ I .r‘..‘."-.a— ~oo-‘su0 -' D " a .. .I-.- -- .... .sbvv’o .ok-o v o. - ‘ v- ‘v- _ no .0..-- Q“ “.1 _:J '- o 00‘.- - 0-0 . - . -.-.‘ "c i ~-~ ~.._._, -ll. . .vo.-._'-.. P. Hool¥oc-ob‘ N'- ‘l-' '- W . s- .- "J ¢-~~ 'F' :8 "v Us»... .I.£1.‘. Cs u/““ ‘ “In .09....L‘. '- ben \IP.0 ‘ "Ives \' *O r u-~ I‘ r- .'.'c. one: - o .I_ ~ .- F... _f f ‘~~“"‘CG t O I. . Proportion of 28 Owners Who Participated in Different Training Programs in Eastern Nigeria and Elsewhere . . . . . . . . . . . . . Proportion of 68 Managers who Participated in Various Training Programs . . . . . . . . . . . . . . aUS$48 Hours Spent Daily on their Farms by 1“”? Enuepreneursoooooooooosoooooooooooooooooo Pr0p0rtion of Reapondents who have Attended the Annual Poultry Conference - 1963-66 . . . . . I. "' Saw-20 Changes in Public Policy regarding the Commercial - Egg Industry that Poultrymen Would Like . . . . . ‘ ~.‘-§1'-l Efliciency Characteristics of the Representative ."' MOA/RIR FedMOA Feeduoooooooooooooooolo Gross Margins per dozen Eggs for Representative Producer Type in Six Provinces Using RIR Fed MO-A Feed OICIOIOOIOCOOOOOOOOOOOOIO... 'Net Margins per dozen Eggs for a Representative Producer type in Six Provinces using RIR FedMO-A Feed .oooooooooossooooosoooosooso - ‘ Basic Characteristics of the Synthetic Layer ’ I~ Enterprises in the Five Studied Classifications . . .9 5,-Technical Characteristics of the Studied Classi- >1. ‘ f" fications using RIR StOCk ooooooooooooooooooo frsijechnical Characteristics of the Studied Classl - fist of Feed per dozen Eggs on the Studied Flocks Page 142 144 146 148 149 170 177 fiiw l—‘r'azx I .s‘ f'_.. -: 1,“ '- .:‘ V~:o \u. .-~" ‘ Q .. ' " ‘I d ’ Uc‘ .‘0'0. .:0 F“. 3: L... ' '_. LV:- 0 ..s‘- -. “7 - _ ‘ I ‘-u'§ .Ab - o v 2" \flsro I, . z '. 1‘ Vb-o '- HU 4 s ." ng:¢ 4—,: . - , " \vbcu v; “4 a -i .. t F n .. ‘ i-A. ‘9 -.. ‘ yv:. v. rrv u-n F. K c- b o ~\ g g- g. o .-s F--. a .K . e ° . . d “4" o. .‘J. k' . U “u-.." v- 5 D a. q..‘ . o. s" r7 .6 ."' \l. VAL-:5 ' ‘- ..\.. ‘ u-_ . «Gurus L .'~ I- fl ,. .M- ..’-g \l . Heat: ' :4. .. . .. ~- \-~~ 11-. do.‘ .p.“.. ." .- "Z c . b i...“ . . “h.“‘t:-:C . . ~.. ,— Cr.;:c \r. "' an; In. e-fi 4 S..'-."I. h "wot u - - .c C-‘A ,‘~.. C‘V:. ‘I .l._ I O ‘4 . .~ u . I h 't u A .1- ‘ I 9e I .h I . h 7-10 7-11a 7-llb 7.’- 123 -xvi- Cost of Synthetic Point-of-lay Hybrid Flock on MOA and Commercial Feed .............. Cost of Hen Depreciation for Synthetic RIR Flocks on MOA and Commercial Feed .............. Cost of Hen Depreciation for Synthetic Hybrid Flocks on MOA and Commercial Feed . . . . . . . Cost of Labor for a Synthetic Flock of RIR . . . . . . Cost of Labor for a Synthetic Flock of Hybrid . . . Cost of Production per dozen Eggs for Synthetic Rm FlocksIOOOCCCOOIOOIICICCOI.OOOOIOI... Cost of Production per dozen eggs for Synthetic Hybrid FIOCks I00....OOOOOOOOIOOOOIOOOIOOO Gross Margins for Synthetic RIR Flocks in Six Markets of Eastern Nigeria . . . . . . . . . . . . . . . Gross Margins for Synthetic Hybrid Flocks in Six Markets of Eastern Nigeria . . . . . . . . . . . Synthetic Enterprise Types Which have Positive Gross Margins oooooooooooolsoooooooosooo Synthetic Enterprise Types Which have Negative Gross Margins ooooooooonouoooooosooooooo Proportion of Farms Falling into Each Scale Classifications in Studied Pr oyinces . . . . . . . House Depreciation Cost for RIR Flocks . . . . . . House Depreciation Cost for Hybrid Flocks . . . Interest on Capital Invested in a Rm Flock . . . . Interest on Capital Invested in a Hybrid Flock . . Page 192 193 194 196 196 197 198 200 201 203 203 206 206 207 207 ',.¢ _ . ' _. . 7 ‘7 o I I A, 9 I o , . . . ' ‘ s s s 5 | ‘ . ~ ( l L r s . - - ‘ . o. .- . . ..-I . . 0 - . A I \ I I s s I . l . . l a O .i v - ..o ' a l ,‘ e 4 b” n x Q t - V - . . . . . I I . ... i . . ... \ A ' n - . _ . . I O .. "4 . , , o 9 I. I I ‘. ' '41 u 0 u I I n I s A s s c a q. l I Q \ l I t c t t ( a \ I ‘ ‘0 O I "‘ ‘ . . ' . . . O '. 39. ‘.' 0 .. , (It rm- ! “..‘~‘ F-.- '-I‘ O 4 ‘ b n ‘- .0- . “C’- v';._,- o- -...‘. . .- . .- _ F-.." .. .3" Vb..b‘. O ‘- o- ' ' 90"» “V‘ . l .0 '.oo.- o o -..o v‘ “ Us“ A :- rt- .\-\ V~~. - .C. N 4‘ ’- ‘b-éu “teak 2.3-.4’. p\. ‘ u. t . - A .- 0 IV‘: : . ‘ c.... 9.1.- . "AQIDAC‘Ik “4 \° ‘ - s I. .‘C. ”.5: A ' o ‘3.th _ .~ 0‘. U C O ' ‘ “"‘Coo I . I. ..' ‘ "arL¢T-: T.,__ . Smurfs 0' . -xvii- Cost of Family Labor to Poultry Enterprises Usinng Stock IOOOIUOIIOCOOIIOOIOOOOOI. Cost of Family Labor to Poultry Enterprises Using Hybrid Stock COIOOCOIOOOOOCOOOCCOOO Total Deduction from Gross Margins for Studied Rm Operations.0...OOCIOOIOIOCOCOICOIICO Total Deduction from Gross Margins for Studied Hybrid Operations COOOOOIOIIOOOOIIOIOOCIO Net Margins for Studied Synthetic RIR Flocks . . Net Margins for Studied Synthetic Hybrid FIOCks IOCCOOUCOIOOOOIOII.IIOOOIOOCOICOCC Synthetic Enterprises which have Positive Net Margins COO-OCOOOCCIOCOOI...0.0.0.... Synthetic Enterprises which have Negative Net Margins ICUOOOCCIOIOIIOOOICOIOOOOOOIOOOIO Imports of Eggs (in Shell or Otherwise) into Nigeria 1954-1965OOQIOUOIOIOIOIOOCOCOOCCO Total Cost of Production Per Egg and Per Dozen Eggs on Farms Capable of Producing at less than 3/6 per day...........-..-.-.-.. Projects Related to Poultry in the Eastern Nigerian Development Plan . . . . . . . . . . . . . . . . Corn Seed Distribution, Production and Price Paidper Ton0......OOCOOOCCOICCOOCOUOOCO Price Paid to Farmers for Maize by the MOA . . Distribution of Producers Appearing on the Survey - Phase I. H ooooooooo-oooooooooooo Page 208 208 209 209 210 211 212 212 224 230 255 263 271 287 G-l ’ G-Z G-3 6-4 6-5 - xviii - Distribution by Province of Commercial Poulumen00.....COOOOOOOOIICIOOOOOCOOO Total Annual Output of Chicks up to December 19660.00.0...-COOCOOCOOOCCOICO Array 0f BaSiC Data Used ooooooooooooosooooo Basic Sample of Producers for Phase I and II . . Labor Inputs and Actual Monthly Wage 01121 Studied Farms ooooooooooooo-oooooolo Page 325 326 327 328 329 ;.‘.-o~p'- - who o¥§uc ~>‘ '— . ‘ o'- ‘.F J:o'-." ‘ u. ' - .--fi 0 ' .:CJ .5 ”—5. LIST OF FIGURES Figure Page 3-1 Structure of the Commercial Egg Industry in EasternNi-geriaDIOOCOOIOOOOOCOIOIOOOOOD 49 6-1 Feed Egg Conversion and Percentage Production for 28 Laying Flocks in Eastern Nigeria . . . 168 #‘ K ‘ I '5'. . ~~"'I':.‘ ' r- L...\.- V. L" '“" —' 1" 9‘..- ...C u\"‘ 3-1 3-2 h: N». Page Organization of Commercial Egg Industry - TheEconomiC Geography........o........ 4’7 Nigeria (As constituted Before 1967) o o o o e o a o o 50 -',. A v 3..» 4.- . ~ - . ‘9‘... -. L--.. fit .‘A .- ...‘ . .- 4 .O- ’0 1 '- H . s..- -.o-. .. k . ...‘ ' U' o. . L ‘ cl _ u A‘.. .., ' ‘ u‘ . u .. "*..T'F ‘F .. . .. Swine '1 ' .- "‘ n, “-L J.i ‘- ‘l‘:\ ~.'- , s ““ Np ‘ :'4 o CHAP TER 1 INTR OD UCTION "The experiences of colonial development are still pertinent and the lessons to be learnt from them ‘ should not be ignored. A British writer has ,' observed that, ”If the groundnut scheme had been conceived and executed by natives, everyone would point to it as incontrovertible evidence that they A were unfit to manage their own affairs” . _"l "" African administrators should beware the double edged nature of this thrust and should try to avoid U the mistakes made in previous attempts at economic and social development”. 1_/ fibjecfive of this Thesis \ This thesis will survey, describe and analyze the economic aspects .' ' 2/ " ‘ ption will be examined. The structure of the industry will be -Yr~.x‘ grad inflame detail. The costs of production will be analyzed. -vlm~«. - “of the public sector will be reviewed. Some tests of the \ 3;;th of egg producers will be made. Improvements in the bill be suggested and the methods for their implementation if Conrad, The Zande Scheme (Northwestern University Press, >,‘,.\:‘| 1“ VQi‘tself as the Republic of Biafra. Civil war has subsequently ':*Since this study‘was performed under the former political apd as the poultry industry existed entirely in that so of, the former name of the territory will be followed ‘ ~o .-~ ~- :w .- -“ —‘ -" .. -..-»« '_,.,..~v' ..-- . . . 3r- .l-.. ”v - " .- > :‘..I .00 -~-s Ado-F'— ' .0. F r .‘U' Q ‘ ..: fi-n wav- - ‘ ‘ -Cv - . ..- - .- “. “'J C ” a .1 ~..5bu‘vl. A an... . ' v . . ... . .,_ A , u w ,. ....._4. n...- .-4_ s. 9"“; 'C a" .- -I‘.- """“' - ds'a.\. .. g . . I v ‘ .., A - -. . ._ . -. ’ .A § (v r‘ "" oJe .. _ _._ _ ‘ ' . . - I ' Fall 0" -o. .a..,.. ,1“- 'u -‘ fl ."".c-ni '. cu. VL-c. “ p” . gun... . ~ a. o..,-- .9 .-_ , - 4 "l No4..\,“‘ 6' ‘ ..- x. . .5-.. ~..~‘ :‘ 1.- ‘ UV _ -..C “_ don) early in the deve10pment process as a growth agent. .0 '9 In the past, public policy has been hinder ed by the lack of rent economic data, causing actions to be made under conditions “ pubtful knowledge. In this regard, this thesis will hopefully be prices acceptable to the general urban public. The project omy. The results have been mixed although some firm $1:th is largely Nigerian owned and managed. The new ttttt \ -M~ an. { In ,un‘ C a J. . . ‘ ..V ' .. --")' W ' . " A '~ "' 2.. ’. .. U*"" ¢1n0-' , nu- -°';." 3". " .'-:.A:--»-"" ."7 . "" ~.~ ~ . ‘__.- o - ‘ .4“ . ' ‘ .... -.\\.~O ”‘ "' “.1. . a... o ., . ' p p‘ -¢ -.4.._.... a... .a.40 . a I s 3...»... O'c‘o’ o . ,. C n u... .4“ .sos~.l‘l- . \ Wu- . ‘ r:--,‘ " "”1"" " e) Gnu otv“ ‘;-»..._A. . ‘.~~u\. 3:; L'. ‘ 0 .- ~ '- cv l. In. a: v...” O M...‘.. u . fit. ' \. {tr-0‘ . u e " ls withstanding the industry is at a critical juncture. The industry ed to achieve its initial purpose; commercial eggs are not yet _, and others appear in danger, although quite generous subsidy 5‘ 1 , mengements have been maintained. t I“: The success or failure of the commercial egg industry will have "issuing on the future reSponse of the private entrepreneur to succeeding ,rr ‘3fiéve'rnment initiated schemes. This will in turn have an influence on I . ’. ' J strategy and design of future deve10pment projects undertaken by , '_ _ hfipublic’ sector. .. ‘ _‘- " ‘ '.‘ *» -1 . 7 331% The decision is not at all uncommon to push ahead at an early Q: . 0 ‘ ‘i" 'r‘ w . 3/ ldgof develoPment with schemes designed primarily to uplift the .r. . : ‘i-well-being of the public. Not a few programs elsewhere include t: which seek to improve the quality of life within a Specific period. Although political need is one factor explaining such [in the case of Eastern Nigeria the desire for a better diet dby policy-makers as both a welfare measure and as a :gri‘from which a higher productivity from labor might follow. ' ssh-y- was selected to meet these goals. .‘iéfiheme' is used here as the popular Nigerian usage tgtomprogram" rather than in the sinister or corrupt pl ".tWards evil ends. 5- ,.o 0' . .. ~ ,. "‘ }_‘ ." "\,.. .--- ‘ ' .90.»- - .\s-' - Q s. -' ". -~ . #5:: .u ‘..‘8 o. v. - -n . . . . . .- a . ->"'P ‘ . -.-.| uten- oo- A - - \"'" -, ~. p ‘ nanoufsat| cunt... - c- . -‘0- ' . a.‘ .1 ‘F fl‘ ‘ ’, . z- y‘auV't . oo-¢, .. . C" » ‘V"-va-o.-_. ‘ . Wail.‘ 43”»:15. J: . .~ 5 .. _ ‘~-. " ~.... 5-..- . ' _ A‘.tso '1... ‘.‘.>: .I. t« I'. . . ’ ‘”‘~—'-.- ‘¢. .- _ s.......ye \e‘. '.. ‘ -. "pp. . ‘ . . . \. .e- -,'_‘ ‘ .k -.u-h -os‘ =.‘.‘.co : l in! I ' U V‘ n ‘- J; ‘e-s.-.‘ ' . V > .u. Mu..¢e.g.‘ q. n..- q:‘ .~Jh‘<‘ c “v.." ~.A\ol C . .' ' ‘-. "I... “‘ ”a. 7 vsesk.\... . 4;.“ .. ‘ 'u. .n _ s ,, ‘ .4"- (J ~ . s... ‘CO’. '51-. . ~¢ — u ‘G'IC 's., ' .. éEC'aI-o.. ‘ . A... The decision to use poultry as a vehicle to obtain an essentially social end reflects the widespread belief that a modern commercial egg industry is easy to introduce. This study will shed some light 4/ on this widely held notion. Similarly much support exists for the comparative virtues of dual-purpose Rhode Island Red (RIR) stock. United States Agency for International Deve10pment (USAID) and Peace Corps Missions the world over have introduced this bird into projects which purport to be "commercial egg schemes". The comparative costs of dual- purpose and single-purpose stock will be examined. The initiation by public policy of a modern commercial egg industry into an economy such as the Nigerian, represents an attempt to tranSplant a highly efficient technology from a developed wealthy economy to a much 1338 developed poor one. Commercial egg production in the United States is a. wondrously efficient, highly productive industry. American poultry- men, with good management, cheap feed and high quality birds, can PrOduce large quantities of low per-unit cost eggs from which they realize a small per-unit profit. This vast production is sold to the m i, In its meeting at Lagos in September 1965, the FAO African Poultry Conference repeatedly stressed the virtues of Such an industry in the African context, eSpecially, with regard to small-scale Operations. .- 'V a 4 .. - g“. O ;- ’ . . . ‘ ,.e.-A.n~;' J': b- 1“.-.‘| ..-U -~' , . ,.-o- .-'°'," :4 -. ' .o‘: L.,..o not I v . , ‘.~- q... -;r~'. ‘. — .~~.---u\ .... \ I n» (f- ‘ 7 ~ ' ¢.; .- u' 5.»... u—s ”MA... I . . . ~ ”"i" e-- n a . v— ' ,- u . .V "" n-..ns.vo. .,. ~"‘"Pv- F. .71 I» win“ r‘ e s. .,. \ .I. .‘ wins a rm, _ "‘“Ho ‘3'. r' V. ‘l“‘. -.._~-d: _ ‘.. ." 4‘ f. 'v s h.,..¥ ‘- world's richest large society. Some of the problems to be dealt with in this study may be associated with moving a technology to Nigeria where quite contrary economic conditions prevail. The poultry industry is the first to have been started with purely the domestic market in mind. Other publically-suppor ted schemes have been initiated as exchange earners for an overseas market. In the case of the poultry venture the Nigerian consumer is the intended direct benefactor. This thesis will examine the benefits he has received. Government has played a major role in introducing and fostering the industry. It provides subsidized feed and chicks. It Operates an egg marketing scheme and pays guaranteed prices for all the eggs sold to the scheme. Government provides free vaccines and veterinary Services. But little information exists as to the effect of public policy On profitability, or egg consumption. Neither does a clear impression exist as to the likely effects of changing all or some of these supports, 01‘ withdrawing them on the industry. These important questions will be analyzed in this study. The manner of the inception and development of an industry in a Country such as Nigeria is of interest. Three paths seem to exist. All industry may be the product of foreign initiative that is later ' v ‘ --" ‘L. '1" .. ‘1 ' a ‘ a'j'v J. 0"», -"‘ ’4 . "I ' .q - .- '5“...« a .5 ‘ .. ‘v- ,‘A'. ‘U n v - .p.»v~u ,m.a. "-4. *‘ T C‘ 0.- ,_.-,.¢.- 0 ‘0 - _. ‘. _,, - . .. , ~- . , ’ ",. .u ". - .a-O' '- - - -.- .._ e-. o. ”H. "‘ \. .4- , h‘- ‘ ,- ..\...U.‘ .k,‘ ‘ 7".‘6‘ a . . ’-- ta, IA ' . _ . I Ce- ‘ . g ‘ a o c Q. "‘n v eta. , ."' ’ ‘ . , u: .§~~:s.-, ‘ "~-..\Go$ V J, ’- m. b. P‘ ...t UU.9""‘ ' :~ w-I’ ..,'.' .‘G... ‘ -._' - I ‘ § 6“ ~o ,. . \r- .... 0.- _ 9(- v..:u. .‘J .4: I-.,, ..'-b. ~ ~ ~.--. ‘ fl, T.” imitated by local entrepreneurs. Or, an industry may begin and remain solely a public venture. The third path is that of a joint effort by public and private groups: the public sector undertaking the more lumpy investments leaving those operations with a lower entry cost to private investors. Before 1960-61 commercially produced eggs were largely consumed by the expatriate community, for whom eggs were imported and sold at high prices. This market did not, however, excite sufficient local production to replace the imported good. The demonstration effect failing to bring substantial reSponse, Government took steps to produce eggs domestically while at the same time hoping to reach a much wider market. The Government sought to encourage mass egg consumption by simply making available quantities of ”cheap” eggs. In Hirschman's terms it sought to use forward linkage, or the supply approach, wherein a cheaper product will stimulate its own demand. This study will 5/ examine the success of the method? 2/ It should be noted that Government has successfully used forward linkage to encourage poultrymen to enter the business. But back linkage efforts have failed so far to stimulate adequate production of maize for poultry ration. Some of the interesting reasons for these will be covered in Chapter 2. .s o .. e , n‘ A v. a: _‘...A.l ‘ l o - ~ ' . Q‘ , b’ ...-I ' 'r’ L!»-- > 1"” -. u.- A . .‘ -..' ao- 0~;~.‘ i ..-.d 6'.- ’._u--.' ’O. . c . '7 _... _-,..-..- ~ _.. . ;. .:~:.-..-.C~- vr' § ‘ ~r ' , . - H .N :5 -u- or ' ‘-u-r‘ -~ - st “15.. \uo - . s .P" V '. ass-filv‘ ‘ s -o-" 0-- v- y . c.1‘ .3. '.'-l . _',;“--o. ._ - M‘: 'fln a” ‘ o..“:~ ‘ 15a... 0 ‘ ‘ I... ' - ..':::r'f‘ .- A "’ ...L’ i. ;".n- 4 .A 0.. u. .:n¢ “hg ‘ S L; _ - ' 9'» '1. ,~ out ‘3‘. 0'... . " 0".” t u u {,‘s. ‘ . -.v 'f‘"- ' -,..‘c~..\"‘ .'_ ea .. ‘V . . r “t ...v:’: -. .' ..‘ A U ‘0- I| " ‘) ‘FuF‘wg'. -.h_“' 0 _ ,’ 5‘s. ,. . w. . f' ‘ ..~..~.... fin“ a. ,4 i sent. The quality of management is part of, and relevant to, the whole question of the development of a Nigerian entrepreneurial class_. Entrepreneurship and management loom as a critical bottleneck in many development schemes'in Nigeria, Africa and elsewhere. Little empirical research has been done, but the experience of the poultry industry as reported in this study may be useful in pin-pointing the sources of entrepreneurs; their problems and practices. 3. fipecific Objectives of the Thesis The emphasis of the thesis will be unequally divided between description and analysis. The abnormally great stress placed on the history, organization, planning participants and the political environment of the industry is attributable to the fact that it had not been done before, and is needed. The commercial egg industry is new and much of the data regarding its background have not been brought together before. The first five chapters will be essentially descriptive but will lay the foundation for the analysis in the final four chapters. The thesis will attempt to satisfy the following objectives: a) identify, through description and analysis, the structural bottlenecks which affect the industry. é/ P. Kilby, African Enterprise: The Nigerian Bread Industry (Stanford University, 1965, Hoover Institution Studies), Chapter 8; P. Kilby, "Organization and Productivity in Backward Economies", Quarterly Journal of Economics, May 1962. t Iln 0-9 1 ' " -‘ I 5-04 t _,&.Ivoo ‘ O ' o -e‘ '- ..'fl . m a. §.C‘¥b.v - - . -o. y'- . , pus,“ '- ; €:-....c.r: ...- 7 ' - .'. .. .‘Cu—v“ . ,. l . A. 0.....- go - _ ' . . . s!»n —-.... u , .12-, Luca..- “ i I. , _ . ‘U 9-. . ‘—. _. ’ l u s... _.._ ‘.‘_.. U. .-;fi .'-"' :‘9 ”‘5 .5._.-- I ' b....-_,‘_ .. b‘v-t‘... . «.4 :w.. a.“ ‘. . ~ e. ‘~. ‘..~ . s- - a :“q._. uh ~ . xgg~ - .. .. a : o .. --. ~ ' . ‘0‘: e':~ . : _ Q...‘ . ~-~ . . .‘. Q. -~.,_ ‘ . JU . .V- I i- I., a . 5 5—1-1 "Q. {an ~k~‘9 ‘eag C\_ '« ~ “ .‘ ‘- -‘Z-- -.::"‘v~ \ \n‘. G“ .- 3 ‘ v.... Q \;__‘ V-Irj-fia‘ “Q v-- . m u" ‘ ‘gt. . -V § §‘ 9‘ . s; _ ~q (- c. < b) quantify and explain the cost structure in commercial egg production for various types of commercial producers. c) estimate the profitability of representative commercial egg farms given the variables of scale of operation, breed, feed, location and quality of management. d) in the light of the above findings, discuss public policy regarding the industry and consider alternative policies open to Government. 4. Surnmay of Previous ReSearch Very little material is available dealing with poultry rearing in the tropics, or on any aSpect of poultry in Nigeria. The Director of the World Poultry Science Library, Cornell University, Dr. J.H. Bruckner was unable to provide any references from the library on the subject. The library of the Food and Agriculture Organization (FA 0) in Rome was personally searched with similar results. Likewise a review of all Ph. D. dissertations written on the subject of poultry since 1891 failed to reveal any relevant work. However, several recent studies have been located, which underscore the paucity of research on the subject. Several papers were produced for the FAQ-Sponsored conference held at La‘gos, on Poultry Problems in Sub-Saharan Africa in 1965. ' .- - ' ' .. '- .‘...— :v-p- 'F‘” i I? _,_..-.—~---- "‘ - . , , , - -A-~-- .— .1. s ‘- e. -. - - - .4 a -. _....- ..- ..e . “‘..-; ‘ u n- 5.”; - , 1‘» 0V..‘- 4‘“: My’ «>5 One deals directly with Nigeria, while four others have some relevance. Three of the latter were written by an Israeli Specialist, A. Ben-David: (l) The Marketing of Eggs and Poultry in Africa; (2) Ways and Means of Stimulating the Consumption of Poultry in Africa; and (3) Upgrading of Local Poultry Breeds in Africa. The fourth paper, Eggs and Poultry Marketing in Africa, was by J. C. Abbott, Chief Marketing Branch, FAO. As the titles suggest, these papers address themselves to very broad issues - but which are nonetheless relevant to Eastern Nigeria and provide some background material. The paper most pertinent to this thesis is the official statement on the subject by the Government of Eastern Nigeria: The Status of Poultry Production in Eastern NigerizZ—grepared and read by D. N. Ajaegbu, Principal Agricultural Officer - Livestock, Ministry of Agriculture (MOA). The seven page report summarizes the history of the industry and briefly sketches the physical state of the industry in mid-1965, including the number of producers, the rate of production of day-old chicks at Abakaliki (the regional poultry center) and the deveIOpment of feed mash by the MOA. ll These were papers read and distributed at the FAO- Sponsored conference on Poultry Problems in Sub-Saharan Africa, 6-11 September 1965, in Lagos. The papers may have been subsequently compiled as a Proceedings, but I have been unable to find them. .5- . , v ..A I’.-."" ‘ :'~" ‘n: '1‘. Jib-1‘ "" . ‘. , .--"" l . ,,.. ‘::;....: '40 -"f ..»n- . .»—y-n~’ a. a... ...1‘.. . r I 4‘. -...-.. Cysuu': 0r . .- nsue-A» 65“ v .1 -.~. gevd....... t ' ' Iv».- ..- .-. I “H‘L't: ".AG~JA. ' H ' U D a. qz‘ r:'“. . AH" .‘ “‘“I'. “k... ' _—-— . I - -. -..‘._ v‘ . _-"n D, “,P‘ . I no. “l‘.c e :-.-~ . - a “M‘- 3’5" 1" ' az'. ' 5 .‘ ~ 5 q ---.._ " . . 4.3:: 5C "F 0,. .. lv- Gish ..": K ‘I. "v: - n'l ‘f‘vm e, - . . — on — . “L.“ “‘6 ‘ a . A .g. .‘-s v - n- 5'7! . Za'fie 3,.“ . n. ' ~ F . -' -:~ tn»... .- ' au.“‘c.e U. , . .. ‘I‘ ~ M. i r . n"... .4 . n. "‘u..0 ,.P- o r-ec‘i . $1.. .,. I“ .u rc ' “M the \ r—_——- -10- The reports of several USAID Specialists provide surveys of problem areas and progress reports on USAID-supported poultry schemes in various regions of Nigeria. In two terminal reports prepared by C. L. Davis at the end of each of his two two-year terms in the region (1960-64) summarize the accomplishments of the period, identify things left to do, outline the problems and suggest policies needed to overcome 2y these problems. A more valuable report, from an economic standpoint, is that of K. Brundage; Economic Analysis of Poultr LActivities in Eastern 9/ Nigeria. Brundage, a Farm Management Advisor with USAID/Ibadan, spent a week in Eastern Nigeria in April 1964 surveying producers, hatcheries and the Government feed mill. The paper presents conclusions drawn from the visit. Although are labeled 'preliminary', no final conclusions have been forthcoming. From his survey Brundage produced a rough estimate of per-unit costs of chicks and feeds produced on Government-operated sites. Brundage prOposed raising the price of feeds to allow the Government to satisfy its policy of making all Government- 0perated directly productive activities self-liquidating in terms of their recurrent costs. _8_/ Davis, C. L. , Terminal Reports, (First and Second) are from the unpublished files, USAID Mission, Lagos, Nigeria. _9_/ Brundage, K., reports from unpublished files, USAID Mission, Lagos. ,. . .. g .. no .i ‘,_ I . ‘- f. ...v0 . . - ,. .-o - .. *"' ~ a e ..o' .' ~.—0 V .-"—.-‘- . ' - . A .- ._ .- _ . Ia ..'.' ...~ - .----. 0 _ - a... l _'..e-. 'I‘W‘H . _ .. - \;._,: \L.--d"" . . -— "puu‘ ”ML-L.4Lvue c... - ..|~'~“‘~"RF n > I. , . . ; 0' ""“".‘ V‘0'xi o i. -. ' . x"‘n- , ~..’..C "‘ "‘c :9. ,., H... . .‘ .’ a . f- .=---.-o . .- ‘ “" “a .0 sor' u a... -p ‘ ' . -.‘.‘m .t. 9:." _ a... -~ Q o“..._ I“ :3. P’H‘WR- e ‘ W-.....tr " \.G. u “ 's, ~ -~ ';. ~... ‘~.r,.«"’ O “ML ‘0 ...A:-"u. .. Hi” i... ‘ kg‘usott G' v . x. H "“4. (xi; . Icahz”, L s.‘ “ A short unpublished paper was prepared by W. McClusky of the Michigan State University staff, serving at the University of Nigeria, 10/ Nsukka. The Economics of Poultry Production, is a discussion on what the composition of costs ought to be for a dozen eggs, and was read at the Annual Poultry Conference at Nsukka, June 1965. A workshop held at Nsukka in April 1966 dealt with the poultry industry throughout the Federation and produced a Proceedings which was mimeographed by the Economic Development Institute, Enugu. It contains reports by nine working groups which examined nine problem areas identified by the workshop. Extensive use of these working papers is made in this study. Relevant to the Eastern Nigeria situation are two journal articles produced in Western Nigeria. One of these is "Costs and Returns of I Private Commercial Egg Production in the Ibadan Area: A Pilot Investigation", by John Abae11_ul./ A crucial fact brought out by Abaelu, and relevant to Eastern Nigeria, is that the battery cage technology is a very expensive system for Nigerian producers to adopt. The high initial cost of the cages raises the break-even point above what can be typically realized by most poultr ymen in the We stern Region. ”Some _l_2/ McClusky, W. , unpublished paper from USAID files, Enugu, Nigeria. Five pages. , rill Abaelu, J. N. , "Costs and Returns to Private Commercial Egg _"“L. " , , Producers in the Ibadan Area: A Pilot Investigation", Bulletin .afi‘ , of Rural Economics and Sociology, 1964, Vol. 1, No. l, . signage 75-86. ... .».. ¢ ..‘...~--" ,, t...” ~""" I. -’ . 4-0- - - ~ -0v ‘ j, - . ..‘-" ‘3'" M & finko"; .'\".- -.-‘ ' :‘;'*'.' )‘DOI§V>‘-. . ‘.2 a- rng'l' . a -...2¢. LU...,‘\:. C’: ... . ' a -o ~-o.....,, - ,. v‘.‘ ~15: s. ..C ..i C‘... . I. a - I -. . ,- g . 1 "N‘s-“c..yr Q. on: as- I... .. ." . —. « "0...: I '5 h... ",‘ ;....;,_ L; g, . ~- .35 .‘L ..r ‘= 6‘. . I v..\ .‘~‘~;'o. . -'-. I :u.. CS s...:."” i;;;.§ O“ t .. n D.» “A . ‘ .4 .::~ .7. I, . :2- . u. e..; | y . . . |1 OJ "" . Vs '-. ‘2. ..’-- ' ougc ’ \'J~, - ‘0 ”-5“?Za I: 9",“ I I 93¢... Observations on the Pattern of Egg Production in Southern Nigeria", by A. N.A. Modebe, of the University of Ibadan, deals with the problems of introducing exotic stock into Nigeria and comparing their performance to local bird—3.! Modebe finds no insuperable barriers to the introduction of foreign strains, but comes out with a strong recommendation in favor of a reconsideration of the local stock as a potential commercial layer. He also compares the effects of the dry and wet season on hatchability, rates of maturity and mortality and rates of production. The favorable performance of indigenous birds compared with the foreign strains led Modebe to this conclusion. Other research and experience suggest that exotic birds exist which are better than the Barred Rocks and New Hampshires studied by Modebe whose preference for indigenous birds is based on a less than complete sample of available types. Poultry Management in a Sub- Tr oflcal Semi-Arid CHM, by 13 Burt W. Heywaigl, is the only USDA document located that had some relevance to Nigeria. The bulletin was written with the experience of the American South-West in mind and was directed to producers in that area. The work focuses its attention on problems of adaptation El Modebe, A.N., Obioba, F. and Limar, M., "Some Observations on the Pattern of Egg Production in Southern Nigeria”, The Nigerian Grower and Producer, 1963, Vol. 2, No.2, page 20-31. 13/ Heywang, B. W. :Poultry Management in a Sub- Tropigl Semi-Ari Climate, USDA, Production Research Report No. 5, 1962, Washington, D. C. "-- ' .,_.~~ Tr——————_——— -13- of husbandry techniques developed in the north-east and north- central United States to the south-west. The point is made, relevant to the Nigerian case (and substantiated by Modebe's paper), that the layer technology developed in temperate climates is easily transferable to a sub-tropical one if provision is made for extra water and cool housing. With regard to the latter point, good ventilation for flocks is stressed. Heywang also points out that in the south—west white leghorns have been the most efficient producers although they mature more slowly under conditions of greater average temperature. Heywang and Modebe concur that no insuperable barriers exist to the importation of exotic stock and technology into Nigeria. No study, similar in intent to this, appears to have been done. Hopefully, the material which follows will go some way toward filling this gap. .4 ..~ 0-'-H- ' . -.-- . _.. s\'- ‘ . .,‘-- 5- .- -————— II‘ ' .- ecu,- .: 9’ ‘n...t .0 .- kxo .- I . .. . I'ec-ua a .13...‘ v0. 6 s - . "«. P _ Q: S:-t\.e'c '. ~o o . . f". e ' n-e- \\_"‘.‘J' "I\‘.. ..‘_- ._.....L.;... d .‘r- -- cu... ‘-~.. ‘ II or; . . ‘ x...... 3... Std ulna lye " ‘ - i ‘ cu“ "“l t".\. . ‘I. al.‘ a :an- P.- . n .e\ ‘J. br . -14- CHAPTER 2 ' THE. INCEPTION or THE COMMERCIAL EGG INDUSTRY OF EASTERN NIGERIA I l ) u f. "It“.is certainly possible to develop modern poultry — ’ rearing on a large scale in Trapical Africa, by _ selective breeding and by using the latest cdncentrated feeds, first of all imported, and later manufactured locally. Such poultry farms already exist, but their 1 cost of production is excessive, as in Dahomey. . . (but) ‘, this constitutes a certain degree of progress”. 1! eh.“ ‘ 32 oduction ; (1."This chapter will present in very broad strokes the background, -. l l A 1 fish: cation and strategy of growth adopted by the Government of Eastern [ Le Development Aggicole en Afrigue, ECA, Nairobi, 5; page 118, translated. V \. ,-- 1.4: 0"" i ' . . - .q a.-,.qfl'fi a -' . v .5. d“ u ”n..- ... ,,,,, 1-3.1.5 3:123! I..7 a. . M... , - "on x. .._;.‘.::s as... ' _;_.t A. . \‘.‘ ‘ .SI ,\.‘;"r‘_a. “- ' \ I. Q. ‘ .. .,.; ... 2.293 ’I'O“' ‘- . ’N 5a.. a \r‘.;: C .. ‘ a..‘~' a’a .,. h‘ eld'.\.:"" :’ l. ' 4’3.va G ' ., _ ‘— . ;~ ' ,‘ He J‘." $. “ ..’ h "v." \ ~‘e \'-‘ ‘. ‘. '0 - >4 .. . '..F -oa-s- 1" ‘ ,,‘." .. -15- status of the industry will be reviewed. The overall intent of the chapter will be to provide a general framework for under standing the environment within which the commercial egg industry grew and has to function. 2. The Beginnirgéa Historical Background (1919-1960) A. Introduction and Selection of Stock In Nigeria, as in many other countries past and present, families maintain flocks of free—ranging poultry about their home steads to provide an immediate supply of fresh and cheap meat and eggs. Both urban and rural compounds are the site of such rudimentary poultry keeping in present—day Nigeria. Methods of husbandry are simple. The flocks, varying in size from a few birds to several dozen, are allowed to range freely in and about compounds, fields and city streets, scavenging. The poultry are expected to feed themselves, although wastes may be made available before slaughter time. Housing is rarely provided, and if present at all, is little more than a lean—to shelter attached to the house. The stocks are "mongrel" birds; high in rearing mortality, low in egg production, slow to grow, and of modest size at maturity. Their ' meat texture can only be described as ”very" tough benefitting the rugged lives they so briefly survive. The degenerate condition of the ”bush" _2_/ The material for this section of Chapter 2 was largely gathered from oral sources: A.N.A. Modebe, G. G. Amantu, D. N. Ajaegbu, O. B. Mba, and from correspondence with C. L. Davis. Written sources, largely fragmentary, are: MOA files LV-l30 (Speeches) and LV-23 (history). A . _‘ K .~ "' g, ~._— .5 ...--. ' . . ’.--.‘ 4 ‘ -9..- V.v-r- " IV "L-¢ . ‘_,.Uo "" so-“ ' . ' . a . e r , s - IA ’ ,..'.‘ .LU.-. t‘ ~-. '~-~-¢ .6. ~ ‘ a a ,- - *‘5o‘bfin kv’ul"e.n\ .: _. . A ..; .q., >_ .FP ‘ ”" "H ’c L’ a...._ f .. " q . . . y a. . ‘_ n ‘ ‘ ' -' k\-s‘v-4.a. 5. ': o . a' ‘ ' n- . - .,,~ . ‘ 3.. E .-a. G. g :5. ., - s " . . . ..::: 'F .5- F. — '~-v fi»”’ -. U .-‘ O . ‘~. I... h' - ... pl ‘1 L." n- (I - Up a,_ls “'C . 4- -P- . “' C.'J:’,.n l .' ‘- ‘._. H ‘ . I‘ do. -.fi ‘ ¢ ". . .‘ .-fl “’3‘ tow-0,. . “‘0 7-“ n.. I- . ".d ‘0- . "v,.’_" 'u u ‘- ' ~ ~ , \f‘; .- . . é.‘ , ' . U _ I- “.“‘e L ‘l' .-'h «'1': n ‘ . ‘ - , c .4. A . Q ‘- l ‘- K . ._ .P "1 u it ‘ 4‘s .' I 5.. -16- “blndry. So inhospitable were Nigeria environmental conditions believed l f V14§bc(by~colonial observers) that commercial production of eggs was . fr -‘ A 4 = i"? ,_- out as a. serious theater for public investment. Consequently, 8 in'poultry research continued throughout the inter-war period to 0 gas adopted. First, experiments were undertaken to study the «A; p giity, productivity, and prolificity of differing exotic breeds t3; '. arias conditions. Second, selected stock was made available We the existing bush fowl. The succeeding poultry experiments '. had at Moor Plantation, Ibadan. To follow-up and expand gsand to gain greater experience with varying husbandry - a ,. - - 0" t- u“ ,. - e A t - .5. .: ...-—--" ’ "m- . . A ‘..-.;"". .l I _ t 'F-.'::.. -... ‘ an. , . - fl . - .n..-. ‘ ,,.',’-~;s ‘ .5: d: 4‘“ web"“'. ~ . ‘ ... ...-o- “" A, - s Ar! J¢u\' '- “. c... Sit-ts . o - .- u-o n0 --- v- . - , w.~-.. \pn .Lks- v A V“ . .." . A 'u-;a; no ,. . o A e. ;..-a-.- J: .a.': 1 » ... ‘. - 9 . ' - . o- s 0‘», ’ f‘ F" sun-«u... AK‘K' ..- a .I I. V I , I'w‘. . k. . ”F r - ..,. .....,‘-‘ r ‘ V‘v 4.1 ‘Q ”(g-«n. u- .. ' u.._"' .= ‘ v ‘I- y Y "4 ck. . . .. .> 10“, '_' I "“4:-~ 91-9 h e M‘ u: .u‘ d: 'f ”r‘ “In. ' . u..: “up ' ~'L“'~Jr: I V" : ' b.:a‘é"‘~-l, . .. ..,._‘§. 0 ,.. I ‘ b ‘ - ‘ Many varieties'of fowl Were studied at Moor and Agege and at length, the Rhode Island Red (RIR) emerged as the best compromis-3_e/. The RIR appeared resistant (to the rigors of scavenging life yet pOSSessed good characteristics as dual-purpose birds, with a satisfactory blend of both meat and egg producing traits, as well as qualities of hardiness, resistance, and size. It also seemed tolerant of the mediocre handling expected of local poultr ymen. Moreover, the RIR was physically appealing to Nigerians of the forest belt, a factor which no doubt aided its rapid acceptance into the local scene. The RIR cock was distributed widely and considerable upgrading did in fact occur. Today, even the casual passerby is struck by the omniscience of RIR-type birds in villages and towns throughout Nigeria. Gradually, the scope and ambition of the program increased as more was learned about the reSponse of RIR and other strains and breeds 2/ Among the breeds studied were Light Sussex (LS), Brown Leghorn (BL) White Leghorn (WL), and the Australorp (which turned out to be highly susceptible to disease and sensitive to the climate). The BL was found to be too similar in appearance to the traditional bird to be acceptable. The Australorp, aside from its poor livability prOSpects, also manifested feeble meat and egg production characteristics. White Leghorns produced white eggs which was not believed to appeal to local consumers. Its higher rate of production, moreover, was offset by its Sensitivity to the environment. 3/ The Ministry of Agriculture (MOA) in Eastern Nigeria imported sexed day-old RIR stock from the United Kingdom. Between 1955-61, some .10, 950 chicks Were imported, reared on government farms (Abak, .Abakaliki, Nkwelle, Owerri and Umudike), and then sold as growers and pulletS. LV—l30, Speech by Nwoye Otue, Ministry of Agriculture. —18- . I ' , #:533th tropical environment. Tentative experiments in intensive husbandry v- . . ~J‘Wd successful; and confidence in poultry possibilities mounted 1 "fi ..' ," , ‘ ‘i - 7‘ q. . . 'gaiccordingl y. .I. g ' O . ‘i 8. selection of Husbandry Technigue From such small beginnings, the poultry program grew with each little success. New stations were established. A very large one was ’ ‘Eegun at Fashola (1946), near Oyo, in Western Nigeria, which became I mithscentl'al experiment station and training center for agricultural .v' i . thickets, including poultry. At about the same time the first such 5 A , y ‘ \‘wenter was established in Eastern Nigeria, at Umudike, near Umuahia. I However, the mere upgrading of existing scavenging flocks is not “ , , , giant step to the establishment of a commercial egg industry, which ' f ‘ @flafly demands the development (or introduction) of an intensive Fay technology. This condition was satisfied in 1957 with the first L Wing and hatching to be confined to the dry-season (October- lid: ~ ‘- . 31H: technical breakthrough established an important pre- . ’ ted under the upgrading program undoubtedly contributed. l « {Marge-scale husbandry was in fact possible. ‘ar “inlaid". j 3% ,‘~ ’, a a --r""..-rr Jog-h A.-. ' v -" ,F- n-' '3’1;.;~..: H ‘2 .‘ ~1- ; - C ,V‘_.,.. o.'_-. - f ...I;so§‘nv-A "' “" . . c L. .s;. 0.; .; “ ' was». ~4.h-'-" ' ..._.. . o . ”V H ‘ .‘n sy- --—- -; .o---b..-u» an . as.-.“ " oo~ - . r. g." "0- Q ‘ .' Hound... 6;. .5 not 04 I. ‘ - ,“; o-- O -. . n ' I "‘-~ .U'bo c... 2" c\‘ t. ." l .o. -. Iv a ,- ‘II..- . ‘“- 5s..ic ’“ ‘ 40- "Ice. u. ‘3' 'w. neg"; F‘...“ ...y¢.os...k . l "‘ ? M. s g "I .l.’ .‘ ”u. 0... " ' st...~ - .'- \ ~ ' ““g \ t‘.' ' ‘..,c t ....q. ”an. n .. .’;‘.. ‘ -"‘:-...'-" IIUJ, ' '— ' x "c..‘u_‘ I -19- C. Pre-copgiitions for the Introduction of the Industry Satisfied Two persons may be given the credit for the long jump that followed — transforming the small-scale experiments of Findlay into the ambitious program of the 1960's: J. C. Eme, a career civil servant in the Ministry of Agriculture and M. I. Okpara, at that time Minister of Production, but later the regional Premier of Eastern Nigeria. Eme had been a participant in Findlay's experiments. Upon being placed in chage of the government agricultural station at Abakaliki, he began to intensify and enlarge upon these activities. By 1959, the poultry program had begun to take on some of the trappings of an industréy/. The arrival on the scene of improved RIR chicks whetted the appetite for more; amounting to a demand considerably in excess of available supply. To meet this market, a few tiny hatcheries Sprang into being. The substantial foreign community, and a small but gr owing urbanized Nigerian pOpulation, were already consuming all the eggs coming into 12/ From this point, the story diverges into two distinct channels: that course followed by the Eastern Region, and the one followed by the West. The course followed in the West anticipated the Eastern experience and undoubtedly provided an antecedent to encourage the East. In the West, the presence of the Israeli Specialist, Goran, led to the adoption of battery cages as the husbandry technology. The two most important Western Research Stations, Fashola and Moor, contributed to Eastern growth by training many of the senior persons now in the MOA, Eastern Nigeria. ‘ . - i . -,. , . F. ‘ ".’;. -' :, 6... t- ." \:...~A-5"‘ .. O O V . V ,- ’:€" 'r-H '.. H' . .s-v L... C.-.-o ‘ a. ' «a --s‘ .s_-I‘ h.-. "=.-o ..- ’ .60“ I - _.. _ . n a. . - on. I\' Q I" 5‘- .V .. ' . .w- . __ d»-..‘Oh oo——.~ s . s - . -- - .4 .... F 'k —;-..‘st"." Jo.-. .. ‘ I . . "’.‘ I ~- 0-... l a no. -Iosu ....¢ . / t . . . ._ . .- - '1‘"- a Pr". ‘ s" ‘ -;~W.. ..~.. 6 t I . .- ... 'IIO.‘ ‘ ‘ n ‘ --I .-., _'_ _ tagggn‘l". k... ..‘ ’ U .. . ‘.. dv\.c.." . n- 5 I . . > ‘F- ._. ' u“ I i “F... . . - “-0.4...“ on‘ I ‘ .I ' a n. , ... . 0“.l- .. ‘V'».. *‘.v'... H . . “"4-ok ., o ‘n. ‘;.. “A ‘QSe’..-._ ‘ I ‘J., ‘:::u “s“ ‘ b , '~-C. SI. . l I“" . I -" \‘.: Ar..:- . «4"...3 a.” ‘- L'o. I“ ‘. i '1“: F . "1., ‘ (Aves local markets and then buying additional quantities of eggs imported from the Netherlands, and elsewhere. To Eme, now operating the substantial and successful deep-litter houses which he had constructed at Abakaliki, the poultry program had clearly reached a point warranting its development into a full-fledged industry: one that augured to become self-supporting in a relatively brief time. The technology was proven. The RIR bird had nearly thirty years of Nigerian experience behind it. A market existed, albeit a small one, but one that would surely expand if egg prices could be reduced. In addition to these factors was a widely held view that the introduction of poultry husbandry would be quite simple. Socially, few impediments resist the introduction of intensive poultry husbandry in Eastern Nigeria. Further, no pr e-conceptions derive from traditional practices with regard to management, save for the propensity to let housed flocks out of their houses for "fresh air and exercise" (an explanation given several times). One can generalize ~ that the new technology could be given to and accepted by Easterners with few reservations, although often with little understanding. The deep-litter system required only one ”trained” manager. Poultry with its houses and impressive flocks provides a quick demonstration effect and gives a not entirely justified aura of quick returns to investment ' y. 0' -n ‘ a- .. ”guguqd ‘ a. . . . . ....o-.m.- "o.— A I'- e . N ...2.’~..$. .a..~da.\ - - o - o - _—': s..- ' . -.... d.-- . .u. r. - 3...; \f",Q . , ’ H - .-.»\-.! J’s-Jo. ' ‘ ~ ‘ ’ I .t .; <"”’ 90 ‘. '“* ---.4d.." .-'s ., .. I A u. 7/ as egg production mount—s. Finally, poultry housing, such as required for the deep-litter system, required little land - an important consideration in land-scarce Eastern Nigeria. For these reasons the industry appeared a “natural" to receive substantial public support. This support was enlisted by a report written by Eme and D. N. Ajaegbu (in 1967 the Principal Agricultural Officer - Livestock, MOA), to Okpara. The report met a receptive audience. _ 3. '_I‘_h_e Apparent Need for the Industry A. The Political Setfis-‘g/ Michael I. Okpara was one of the first leaders in Eastern Nigeria to appreciate the role that the food and primary producing sector could, and must, take if the region was to begin its progress along the path 1/ The converse is, of course, equally true. Poor management leads to a dramatic reSponse as mortality increases and/or egg production declines sharply. Management is in effect, paced by the sensitive nature of the birds, forcing some level of skill if there is to be any success at all. It was felt that such minimum husbandry techniques could be taught to and absorbed by the Semi-illiterate personnel who would manage the poultry farms. E] I am indebted to T. V. Erikosema, a political scientist with the Economic Development Institute, Enugu, for the background data for this section. Erikosema had a document on Fabian Socialism published by the Eastern Nigeria Government (1962) from which he drew some of his information. A further source is LV-130 - Speeches - in which Okpara's position is alluded _ to by various government spokesmen. Also, conversations with Zik's son, formerly at MSU, added substance to it. 0 . - 4‘. a.— .sF-r' ‘N '1 i O ,. ,.. ‘ ”3...”; 9‘ ‘ - I - .....-~-¢'F‘,"‘ ‘r’.’ ' .:.tsoud- ' " ,-. n. no in ‘FA ' I (J -0 ys‘.‘ . . . . -»......o,. o.e a. .. .. s v-— up... 0. ., s cc U—DOI so“. '5. AK .1; .‘;. o... .."_ " .e‘-... «U: '4'“_!"r 3.. V l "' :~._" _ I'- "" o.~.,'s\:. ‘ . ..' ... _.. u. {:1 ..- . .o. '5'"! 1.21 - . I “ -. . ‘ o~..;.:. .0 5’8 - '.. s- . 6-. I . a. . i‘,‘ a" '0 I .. '4 - . ...e .. v ‘. "~.': ."§ — . “nu J”... _ c. . . ‘du. L I. ’ ' ' iv.” o " "as. I". ..h p .U Al.‘c‘-k'_‘ "I <: :‘w. ‘~A.. I - . ' ‘C ‘65 F. \ ‘,. ..‘-> ‘xl: w,“ ‘ A¢\‘y. ,_ 5“ “.l - ;~.' ~i ..‘:“J‘ P: ., . . U. Germ -22.. J’sfi the, veterinary service. Although the economic wisdom of some of ' ghiio'pro'gram as growth agents have been questioned, Okpara's policy ' ‘1 . _ jhrokewith the previous emphasis on a rapid deve10pment of an .7 fginfiustrial infrastructure. The long time proponent of industrial and infrastructural development d; eggs. been the other great figure on the eastern political scene - Nnamdi :. “21k" Azikwe. The 1958—62 regional budget reflected this bias when {$4874. 000 ($2, 447, 000) (or only four percent of total expenditures) were Vi $19.1:ated to the agricultural sector, and of this small sum the bulk was . r1; , ‘ 9/ . ‘W‘. to the stimulation of exchange-earning primary production. + ' ' ,"‘L‘g".",g«r this period, the funds of the marketing boards were increasingly ‘r)\ ‘0 . ‘iaifievelo-ment-Plan 1962-63 (Enugu: Government '1 ." s. ”P ..~;- 3;.‘k'30 .l.' g.. a"..- v . C ‘ fl _ ._,, ..~.. "a‘ ! -: :“ us-ots * U 5". ‘ I -... . . ’- 5... as. n I. I --.~u-,....-...-- I ‘ F U o " ..«8. u....'. no I O ‘-~ - _ | . 3...." L 'V"- --a0~ Av. no. ""Iltths ..v‘. . s... _ 4...} . .. . -'.., : to... I "‘ so..- i \ ... .._:3'- -- ‘,'_ ....,_g. .5; - _ tie-C . ~. "‘-, <.,k'~" .. ‘_’ u.» p... 6. .4, I. .. - '(‘D o", ._ .v’ . A sul:e r“.- . ... . ‘r s.|". ‘4tu In, . v a: ,r_ . .. Cfip 'l i x _ , 's,“'. . “0:5 . -23- ,“region's economy were less evident. In the 1930's and 1940's lshortages were no longer chronic, partially as a result of the long Elf: peace. The flow of people from over-crowded rural areas to v | r ‘ « 9 ‘nsw cities was only a trickle before the flood that was to fill them {MW young semi-literate unemployables by the late 1950's - and there . _ Le fewer people too. . Always populous, Eastern Nigeria has become one of the most .; gene's” populated areas of Tr0pical Africa, a dubious distinction whose economic implications have only recently made their presence felt. filthe gap between urban and rural living standards became more Iced, stimulating the onslaught of inter sectoral migration, this qtial population did not make itself felt on food supply or on the «35y at large. 9 1 $1?“ these reasons, Zik's generation did not see the rural sector ‘ traint to development. They believed that development could rn-o .0!" -. 'I .I .,.-.o a o 0‘ ' '.'.- aura.“ ‘- L“ ' -‘ ". " s In I " 0‘ ‘ .‘b :84 0V a. .- . ...0. . .,', A fl Anus-L *0... 4L- IOI EXECTTS a". . t I -. A. .. _ .. .r 'e n'"..“ “\t ~Au.‘ a1: is :0: '0 ' » “""Ip 3.... _ ., .. r dob.,.“ gg'..~ . so $.n _ I. _ - L ‘ V Y' r. . ......‘ q. .- C "V- o. .. p u. . “"'-w.-.c. I . I. I. O ' n J“ fl 0' I V ‘5. g ‘5‘ .."9C"'"ru.. " \ ent...” - future industrial and general development were to be met. Changing conditions compelled the new generation to grope towards an agricultural solution. In the narrative of the Second Development Plan, Okpara's government gave evidence of this understanding. "No serious improvement in the pace of overall progress can be made until agricultural productivity has been increaSed - both for exports and in food crops. The growth of the industry may be retarded if food production is not significantly expanded. The aim is not to make the region self- sufficient but to increase the protein content of the diet and to raise and diversify the production of those crops for which the region has a natural advantage. As a priority the Eastern Nigeria G0vernment has to tackle fundamental economic and social problems. The 1962—68 plan will emphasize the more directly productive sectors of the economy - agricultural and industrial . . . agriculture will get the first priority. . . . The development of industries is also expected to spur the demand for food. A well-nourished labor force requires an increased protein percentage in the diet. So poultry, livestock and fish are to be developed". EU The development plan of 1962-68 allocated 34 percent of its much greater budget to the rural sector, some L 36, 821, 000 ($104, 000, 000). ' , 11/ B. Nutritional Needs of the Region The above narrative makes clear that the thinking of Regional planners transcended purely economic considerations and attempted to 1_0/ Eastern Nigeria Development Plan, 1962-63 (Enugu: Government Printer, 1962) page 8-9. 1_1/ Halver son, .The Present Nutritional Situation in Nigeria(USOM‘, Nigeria Consultant's Report No. 4, September 16, 1961), page 25. Jon H. Halverson, ICA student research project. Most of the . ' ' material in this section comes from Halverson. These figures, ' which are rough, do not include wild animal protein, which may “:33“. be of varying importance by area. W ‘3'" ..‘- 6.06 s..- ‘ .‘-< ...-~'3 ”‘3' .soe"‘ ‘ . .p 1". “ '.ov0 fie“ " .n- .snyy- . o ,, . . .-...- -L... . . . v ~cp ..s.... 'o.‘ goo-:03. “muffle l 7‘ . . ‘ ‘ v I '-q ,n- . . . _ .- »~. 5“: 3:6. . . It": \' I A l u‘ . .- Cu G: 9‘3... I..‘ 1 ..'\r-“ . , -‘ ‘o-A ~4.g. "‘~ - $.l GHQ 15 5." s .. "5 Q NMC...‘ :"" - 'V'VHC- ‘- 4: Sev.‘.'_v \‘.a. r I‘. u. ,l '\i I, . N‘ Cat.‘ "‘6 '9 e ‘- ;. ""3 s. . Xe ’;- 0‘: . ‘. is.“v ‘ I ‘c.—," ..~( 1 .‘ah a, 'r. ‘1‘; -25- reach out and touch one of the more fundamental afflictions of the society, a serious deficiency in nutrition. This latter consideration appears to have been of itself decisive in giving rise to the poultry scheme. It is generally accepted that there exist a number of imbalances in the typical Nigerian diet which agriculture and production policies should aim to lessen as rapidly as possible . The nutritional situation in Eastern Nigeria is eSpecially stubborn in that the degree of caloric and protein imbalance is so extreme. The preportion of calories coming from starchy foods such as roots and tubers is nearly 80 percent whereas any more than 75 percent is considered undesirable. Due to the pre- dominance of yam and cassava in the local diet the daily protein intake is only 33 grams compared to 90 grams in deve10ped countries. Even the protein intake actually realized is deficient in vital amino- acids (such as lysine), obtainable only from animal sources or such presently unavailable (or scarce) vegetable sources as COWpeas, beans, millet and soybeans. Animal protein remains in short supply in the diet for several reasons. Unquestionably, the most important is the presence of tsetse fly which effectively prohibits the establishment of commercial animal husbandry. Goats, swine, and dwarf fly-resistant muturu cattle are present and are consumed, but in insufficient quantities to solve the basic nutritional problem. However, mounting quantities of dried fish now enter the region. V,.; In. C... ‘55" “ ' U I ur " ..u 's .- oI . n -n- ,. pg. 'n" ‘ ... 1”" t u..,..- -, “rah.“ G son—o ..a , .- ' 5" . {Us l . .. s...-s 0.. n”. a. a 'n v i A y-b m, ...s.o‘, .rvt’.‘ as e . . ....~., . , _ l’ ‘ 0' "‘-“\~ 1: n-sc.. a . _ ‘ an. _. L, ~~ ,',v‘ ;”"‘ ~ “‘~“-~J-s. u " u.. ., .v -..‘,._- _ ~.- In Ak.l.c. “k - t s. N. I I o. -' fI . " . w" ’0. a. “‘9: a“ ‘ ‘ . A _ Mo-.\.‘.6" Mg" . w- ! .. I‘,|-. . U ifll" . .i."--JAPS - -|P I .' . ' \ ‘:_ ‘I,_' H ‘u 9"" ‘u 0" . . so, - -26- Since proteins cannot be stored for future use by the body, they must be consumed in regular balanced meals. In rural, and even urban areas, the small amount of available meat, including poultry, is conserved until a big feast day, and is then consumed all at once; thus wasting most of it from a nutritional point of view. Children, eSpecially those recently weaned, suffer most because they get the smallest and least desirable portion of the food. This practice is justified on the ground that children are the least productive family members and individuals are allowed quantities of food preportionate to their original contribution of labor. Nursing children are not much better off as the feeding mother enjoys no priority at the food pot and also has to do much heavy work. She is, therefore, able to provide only inadequate quantities of milk to the young. A possible source of protein is goat's milk. But this is looked 1.2.! upon as a repugnant food (reports Jones) - goats being considered the filthiest of beasts. The other convenient source is from eggs. The household scavanger flocks do lay eggs (about 40 per bird per year), but these are not much eaten as they are looked upon as potential ‘ El Iam indebted to G.I. Jones, Jesus College, Cambridge, for his insights into Ibo egg- eating customs. ‘ I o ,d .n - - |’F’;"" \\ . ‘ 4.x -. ‘:.¢:. " .. I “ 'IP" i-‘IL‘. -r\“~- «Al-yo. u'v“ ‘ ‘ .' .- ..A A... v- -IH , '4 O 5..-“:3 RC... ht; a A s oe-s .'#=‘~II - rt -'..- :uo g.U.~. mu. .. . 9‘ so u- ~00, ~0- - H .1 a ‘ 1 one eta \ob 'v I o ‘n - 5;... ~e-b‘ ‘I H g .- .-,. a H «1 bruto' «. neg":h. ‘d,v~. u ‘ 1 apt“? a” \I-s‘ ., w 5. %*LB.. c ‘ .‘. .I“ u '0 I f‘ 'n“; ‘ -\.~ , s ‘ H _. , \ l _. .0.) V.s'_ '. .. 0“.” ‘1. ,Uv“ 0 .-~: Q. €~C~ - .. 27 - Ly chickens. Indeed, consumption of eggs is felt to be an extravagance for each egg eaten is one less chicken in the compound. Certain food taboos center on eggs. Children, it is said, are likely to become thieves if they deve10p a fondness for such an expensive food and, consequently, are discouraged from eating them. This latter notion is widely held throughout the southern forest belt of Nigeria. Urban families can keep few chickens and so are denied even this source of eggs and protein. The effects of protein deficiency is striking and lasting. Among 1_4/ them: 1. Excessively high mortality particularly among children, and wideSpread anemia (one of its most prominent physical effects being the water-logged look among children). 2. Among survivors of childhood are subsequent adverse intellectual effects. Pre-natal and childhood deve10pment of muscle and tissues, including brain cells, can be seriously impaired by 12/ Poultry is also regarded as a source of occasional income to augment the family budget. Protein foods are often sold for cash to buy carbohydrates. Were the poultry consumed at home, the amount of filling carbohydrates that can be bought would be reduced. _1_§/ AiricultureLScience, Technology Development Serial, ”Meeting Human Needs Through Agriculture and Food Practices”; Scrimshaw, Nevis S. (MIT, Vol. III, U.S. Printing Office, 1963) and LV-23 Poultry Policy and General (MOA), page 89. ‘ Ina-p- ;~ . ‘ . ,‘A..oV--- "‘ 4| _ . o 0 fl. -' .. '0 '; Cad. o6¥~~ .u— . . ._ _,. . .‘. -..,. " P‘. ":h .4....u. - ._.. ‘ . Q] - "w" n-v ’v- -~ 4...; .,!':'. c......... c. . .. 7.3;... \ . ,H,,; ~‘;.O§OLA ‘\"--.IB’ - . C mt”. " 9".“ ....:-::‘ y; *C:_C‘. .' .’-""r\.. - t ’4‘ -v* "‘&L'..,~~ . o‘fl. ~§P '“'v\r ‘ .‘ .-.-.‘-..ch .‘_.v‘ 0 ' g, .- . o. .‘. ..‘I ; (’1) :1. $3 '1‘ .- _ a. g ,3 A- _ u. _ l" .h. ‘_ _ '- .,_ ‘="~t grow- A ~. _ 28 - 12/ inadequate consumption of amino-acid rich protein. 3. Among adults, work capacity and attention Spans are curtailed. The dual factors of nutritional ignorance (itself a function of low levels of popular education) and terribly low incomes (less than $60 per capita per annum) are basic reasons for the present nutritional deficiencies in Eastern Nigeria, causing even what supplies are available to be either misused or wasted. Low incomes will persist for some time to come, until general economic improvement permeates all strata of livelihood; however, dietary ignorance and eating habits can be combated more directly. 1.9./ One way, is through better nutritional education. A second is through the provision, in one way or another, of cheaper protein-rich foods. In apparent recognition of these realities the following policy guideline was laid down in the Second DevelOpment Plan: ”If production is to be increased and the standard of living raised, it is essential that the people eat food rich in protein. Nigerian foods lack sufficient animal protein for a balanced diet. Towards correcting an imbalance of this nature, the regional governments of the Republic have established projects _1_§/ This point is very much at the core of much of India's present concern regarding the substantial nutritional shortcomings in pOpular diet. Mr. Jagjivan Ram, Union Minister of Food and Agriculture once said, in a private interview, that due to these deficiencies India is raising generations of persons of sub-intellectual capacity, representing one of the most serious developmental problems which India must overcome. The problem has been of less magnitude, but not on that account less serious, in West Africa. 16/ Even at lower income levels better balanced diets are possible than now prevail. Further work is being done in this regard. See, Constructing the Nutritional Model, and the Livestock-Human Nutritional Balance in Nigeria. Both by V. E. Smith (CSNRD Working Paper 1967). n F. _ at H“. o'.- H'- n V d;.;.. ‘ o " ‘” ‘ ._. . n ' ' ' 'N - - a,” I I _-.‘~ '- 1. Jt’koVA-hl 6 -‘ a . -u- 'J“--. “V.. " L. . .1- - ..n.. . v.1 , . o .'-- .p- a. A “‘H‘ ’ a ,-c\\'fi I" 9‘ no... - no.5 5 ..§----- ‘ o ,, J"" “"-I- n:- D . . ""‘5‘¢-‘-t ‘ku.92.| I -29.. for increasing the production of fish, meat, butter and eggs. Related to these is the development of poultry farming”. fl/ 4. The Poultry Prgject A. Decision and Plan The report prepared by Eme detailing the technical feasibility of large-scale commercial production of protein-rich eggs through an extensive poultry scheme was, therefore, received by a Minister of Production acutely aware of the need both for greater food production and better quality foods. On his travels abroad, Okpara had seen large—scale commercial egg producing sites and had come to understand that the same thing was technically feasible in Eastern Nigeria. Given the known need this must have acted as a powerful incentive on him. Moreover, a similar scheme was already well-advanced in Western Nigeria; which helped diSpel any lingering fears as to early success, and may even have kindled a competitive Spirit. Consequently, Okpara made the decision to go ahead in the East as well (1959). Before following the history of the commercial egg project, it will be useful to digress briefly into some aSpects of the planning methodology followed in Eastern Nigeria as this has some bearing upon the subsequent course of events. The poultry scheme was All Agricultural Develogment in Nigeria, FAO, 1965 (Rome), page 400. I J “i f I (I. (l. 9! ll! ‘10 l “ “h "“5”" “‘25 a .. :.».¢-..»-“ . .. ..-..’o-- ‘- Q- t- ‘ u \ II ....~ nu.wdhh— I. I I! --——~v-- I.. .r 3‘. , -‘- -..........; x. . .,. - - -' - ‘ '9: _ _. ‘..‘.". A-tywc C q.,_' . - _, n- -;"_. '_ _ " "‘.avv,,‘\‘. ‘ ‘ em . ‘ I" v .- _ I‘ y" I, C... on . _~ ~ ’, ‘ 4 o, . " ~ . ‘ p. a L in- n. n‘ .g\ ”In . p g . . . Mn.- .- ‘40. A a dnh,‘ \L. .J' ..k. .r u n._ -._:§ “'9’. ‘ ' -$~I.H In \‘.“.t '1 i 0 '~ M.‘> H~.':S . ‘n “‘...' ‘ . -4 “a.“ ' ““o. ». “ .._v‘ r . \ -30- 18/ introduced as a 'planned' project by the Government of Eastern Nigeria. Under the 1954 Constitution, reSponsibility for agricultural develOpment was assigned to the separate regions. In Eastern Nigeria, this portfolio is vested in the Ministry of Agriculture (MOA). Since the beginning of the Okpara regime, this Ministry has become very important and has exerted much of the drive behind present deve10pmental efforts. These efforts are expressed collectively in the regional development plan. In 1962 the Government of Eastern Nigeria inaugurated its plan for the planning period 1962-68. Although the poultry scheme antedates this plan conceptually by nearly three years (and operationally by one), it has nonetheless been included in the plan under sixe of its 81 project 12/ titles. The importance of the plan to the poultry scheme lies in the planning methods and organization employed by the regional government 1_8/ Several Specific sources contributed to this section: Hagen, E.E. , Planning Economic Deve10pment, P. E. Clark, Planning for a Country in Transition (Nigeria) Irwin, 1963, Moore, F. J. , "DeveIOpment Planning in Eastern Nigeria”, Journal of Local Administration Overseas, July 1964, Vol. III, and Waterston, A., Deve10pment Planning - Lessons of Experience (Baltimore: John HOpkins Press, 1965). Also MOA: LV-23, LV-l30. But mainly this section draws on discussions with individuals close to, or participant in, the planning process. Of Special use were the seminars in planning given by Dr. Rikard Lang, Director of Institute for Planning, University of Zagreb at the EDI in Jan-Feb. 1967, and attended by members of the Regional Planning Cos sion, in which their problems and practices were aired and discussed. 1 / A list of the relevant titles .and an estimate of the jtotal cost to the regional government of the scheme is located in the appendix. ' . I c --In' .’ _\,. .--‘ ‘ ‘ :5“. .- .— , . P.-- -"\ v.0“: ...- u -.' . Q. . .~’-v-,fl fl.» :._.'~ao-‘ ' O -‘o-‘" _ .. np- '~ .. ...*: tat”.-. .. . . ...- 4- -—I- Qh-r- '. . . . _p- p... n~- .. ‘-- k...‘ .04‘6 4.06.. 0 ‘~ 'v>-; —o -‘.\:o _ 'oo.;. J. 5.‘t~.\.\ .. . “ : M ‘- 'I o u , I DA. . - _ ,‘ " .- —‘.'.J_‘.‘ J: ., - g . >6 3 -_._.’_‘ ”‘ o .6”... .- - o.-..‘,._'; . ~8\...\a‘ J ‘v #1.}. vs. 0‘ by -"—.' v. ‘ I.“ A AG.- _“ "FC ...§ . n... O -n. I‘V.‘:. . "‘q o L . it. ~C 3 '1- .6. . Daupo-‘ . _. ‘ ~A...‘.~ a O . ~ k.. x c o _. 9"... a ~.\\d':. .139 0* u. c D- g -. -. 9:5- 'C‘P. ,. i'A‘ . I ”.w... ~u.‘ ‘- ' F . I _ _ :- e “‘L .\"‘ ..¥ \ -31- 20/ to Specify the scheme's terms of reference, target and design. Once the decision was made by the Regional Prime Minister to push forward with a commercial egg scheme, the project was turned over to the technicians of the reSponsible section in the MOA to be planned and implemented. The people who planned the poultry project, and who have managed it since, are specialists in several technical areas of livestock and poultry husbandry. Their experience had been at government research stations where they had experimented with 32/ It should be made clear from the outset that in Eastern Nigeria the Planning Ministry does not formulate Specific policy for the tactical or implementational levels. Indeed the Specific jurisdiction of the Planning Ministry is open to question. Moore describes its functions: ”The function of the Ministry of Economic Planning . . . . was to be largely one of directing, guiding and coordinating the planning activities of the other ministries. This was necessary not only because of a Shortage of staff. . . . and their lack of Specific expertise within a variety of technical fields; delegation of reSponsibility for planning was considered essential in order to give the executive ministries a real feeling of participation in planning for deve10pment“ (Moore, 92. fit). A rather simple procedure was used to determine which of many pr0posed schemes could be initiated (my source of this procedure are members of the Planning Commission who expressed the method orally during the Lang Seminar). Individual ministries are called upon to submit schemes and pr0posa1s, along with their cost estimates. These were subjected to the following criteria by the Ministry of Finance to determine whether or not they would be acceptable. The schemes were arranged under four priorities. First priority was given to Eastern Nigeria Deve10pment Corporation (ENDC) schemes. Second priority was given to those to which definite foreign aid was committed. Third priority was given to those to which some chance of foreign aid existed and which seems to be appealing or urgent. Category four comprised of schemes with virtually no chance of foreign financing. The poultry scheme would seem to fall into the third category since only part of it was financed from abroad, but it was the beneficiary of the determining criterion in that the commercial egg scheme enjoyed support from the highest political quarters. O;-g vfi‘ .a- a ,o. F . 9! “_‘ -‘.-» , . ....eovn " , . o‘-"“'.' .0- ! “,‘. o... -uoc ‘0‘. w 3» -32- deep—litter houses, feeds and poultry breeds. When called upon to transform their experiments into a commercial industry, it was only natural that the method adopted was to do what had been done experimentally; but on a vastly larger scale. However, the fund of experience possessed by these managers (and by the USAID advisor later associated with the project) restricted the areas of government initiative to those segments where the planners felt most technically competent. This constraint has made itself apparent from the first. There is no single method of introducing an industry where none has previously existed and the method must be subordinate to the relevant circumstances. The means adOpted by planners in Eastern Nigeria seem clear - they did what they knew best: produce chicks, provide extension and veterinary support, and later compound and distribute cheap feed. The marketing segment, however, (in which the technicians had no experience) was neglected until comparatively late. The scheme, in effect, merely stepped up, vastly, the magnitude of the activities which were already engaged in at the Abakaliki Poultry Center. The method of planning employed in Eastern Nigeria has its strong points. Persons who must plan and those who must implement are linked together so that ends are not divorced from means. Also, the system allows those persons most knowledgeable with the technology -._...-bov-."; r _:I; a :‘V:_‘....uh .- - o'--'..~ I"°"’ " ' -- _ ..| '.Lo:.ob‘oo’ . " .. , . .., ...-. .-,. I ~uo~.,- - . a ' Q ..;-.......\o *‘ s . .. ,, D..;p --.-. q a. .,.\,.4 $..~...-.-.. c Y—r -- o .- .,- -_.. . ~'\w ‘ \‘ ,.." _ -&..a-5 U. . . . v -- _ N cu" ,. ngn .s. , -13..“ :na . _. (I'D-I. .-.b-.\ “.“: h ._ 9 -.~:..‘ ‘flh\ ‘ ‘. ‘ n — c C -n. : ~.....¢.~Q aL ~ 09 ‘5‘ :.- _ ~- 9.“”':st~¢ C." c - ‘ ‘ ‘h V -‘, . - 14",""-~ - P. .64...- = a ‘.v-l .,-‘ 9 -.. '.A A 1- ‘ .....a '3 ~03 r J' _ ‘- . ~ . - ‘ n ..-...‘-“c ‘._ .'\.‘ e 'a;‘.. b \‘ b " ~. 1‘ s‘ 1':- I ‘. I... ‘:§‘O‘~ ‘ A -._ _ ..‘ I ..‘, -v .Q ‘u \_,_‘ ‘R'C,C - ‘ “ ~«a"€' U .‘- ‘ D "t '1. ' U ‘- -‘~ “VT" - ‘ on A ‘ 't«£ : . -‘~ P.‘ . 01 Ca. ‘ y- . . (a. .‘- \\ ‘S:v~ . " *Es Q- st; 5‘. .JN.‘;. .-.\,... A Tc. 2.‘ ‘ - faint“ .oQ‘lE “’ \ , “ o " . \. !'. - -33- have a substantial role in planning. Moreover, planning can be done realistically within known limitations of technical competence and feasibility. Conversely, however, the criticism can be made that too much attention may be paid to essentially technical matters at the expense of wider ones including economic feasibility. If a scheme is to have meaning some criteria for judging its performance must be established. Targets and steps to reach those targets should be Spelled out. If this is not done, the plan will likely manifest the insufficient internal consistency that follows fr om inconsistent or contradictory goals. Targets avoid this imbroglio by providing a clear definition of purposes and priorities - a statement of what is toxb'e done and when - so that a coherent strategy can be established to allocate investment resources among competing demands. Without such clarity of purpose, and approach, plans run the risk of remaining vaguely aSpirational statements rather than detailed designs to well throughout goals. In the case of the commercial egg project, no targets have been expressed in ”quantitative" terms except those later put forward by the government hatchery relating to anticipated levels of day-old chick output. Although the primary purpose of the industry was to provide cheap protein, this goal has never been made explicit. A reasonable price has not been made Specific. Neither has a planning period been Specified. Consequently, planners do not know whether the retail price of 4/6 (. 63¢) after three years is something a-.. “ ' ,.- - .o , 4 ..--.u. \. .. .‘L n'n ‘,-- .. >- .41'I.5 .. .... ,,— ,. ...t~.o "I-o-- u 2....C ‘I»--. . " \ ~~ .ug‘. .-~~. - 55c 0 *0 .w. 5: CC ,2 v-v- “no... App ~.‘~ "-‘ A .na‘. —. — . -. .9. " Mags. .. a on- - - I u c... c, *ya. ¢ 0 ’u.‘ ._,‘ ‘1!» ,- ‘ J‘.)v ’ .4,- . 5A.. .L‘ , ~ _ East: 7 ' -- -34- to point out with pride, or to explain. Without such guidelines it is difficult for planners to measure their progress or for the researcher to analyze it. No objective was Specified regarding this program until after the FAO recommendations appeared in 1965 regarding the need to upgrade _2_1_/ Nigerian diet. Then the regional government orally accepted the FAO objective of an egg per urban person per week as a desirable one for the industry. No calculation was made of the implications to the regional government in terms of needed subsidization of inputs or outputs, given this term of reference. Nor could they be until the costs of production of eggs were revealed. Lacking these essential requirements regarding goals and provision to meet these goals, the poultry scheme cannot be termed a 'planned' project; it is really a program to introduce large-scale poultry rearing all Aggicultural Development in Nigeria: 1964-1980 (1965, FAO, Rome). - .. -4 -_. .It- ¢.. 0 .-.o~ - .s. ... ....:. .14.... “F F— 4“” \ -~ v... -35- 22/ into Eastern Nigeria; one of whose benefits will be cheaper eggs. B. The Scheme ngun - 1959-61 The decision to initiate the scheme was made in late 1959. Shortly thereafter, the regional government requested the United States Agency for International Deve10pment (USAID) to provide a poultry Specialist 33/ to help organize and manage the scheme. The poultry specialist, C. L. Davis, arrived on the scene in February 1960. Davis toured the government farms; reviewed the Situation, and prepared a survey of the problems and needs required by the project. He recommended that the deep-litter system (which had by now had three years of successful trials behind it), and the RIR (with nearly 30 years of Nigerian service) be adopted. His general approach to the introduction of the industry on a 24/ commercial basis was as follows: 23/ The lack of clear-cut guidelines and priorities have had implications beyond a lack of targets. The MOA has made no clear distinction with reSpect to the role which private producers of inputs were supposed to play; or of the long-term intention of the MOA as to its continued presence as a producer. Government guidelines relating to the need for a scheme to be self-liquidating and those affecting the maximum level of subsidy have affected the freedom Open to the MOA in planning the scheme. With guidelines the possible constraints deriving from these policies would have become more apparent. Moreover, the Federal Government's input tariffs on ingredients to ration have helped to keep feed costs higher than need be. Some region-federal government coordination on this score would have been very useful. 23/ Davis, C.L., First Terminal Report, 1962, USAID, PS 1. Technical aid is often suggested as Opposed to solicited. The poultry project was a happy departure from this condition, and the circumstance was reflected in the close and whole-hearted support Davis received during his four years in Eastern Nigeria. So successful was Davis that he became affectionately known to, and remembered by, the public as "Chicken" Davis. Okpara asked that he be permitted to remain yet a further two years, but this was refused on grounds of USAID policy. Mr. Davis is currently with a Poultry Project in Morocco (1967) 7A.] T ‘1 O 1 n A o — H’vi'l/ . .A e u.‘\ 0.. c ~p a. 5‘..- u. ; .-.n‘ .1 . .u. .C o A S‘W‘» w t... cw- ‘A 5v -36- "Poultry is an industry that all segments related to it must be ‘ developed simultaneously for it to succeed, i. e. , chick and feed production, marketing, extension, follow-up visits to assist farmers with their problems and the publication of timely material related to poultry. Consequently, all problems were easily solved except; one, the availability of vaccines, and two, the failure to assign a qualified veterinarian to the project at Abakaliki to blood test and vaccinate the breeder flocks on time". Davis then sketched out and put into action a six-point plan to meet these requirements across a broad front. The following steps 2/ were pr0posed, and taken. 1. Large-scale production of day-old RIR chicks was begun at newly established government hatchery at Abakaliki. Foundation stock was imported from the United States and United Kingdom and maintained at the Center. The chicks were sold unsexed to poultrymen at a Subsidized price. 2. A simple feed mill was established at Enugu by the government, to provide feed which was also sold at a subsidized price. Ration outlets were provided in several locations in the region and the cost of tranSport to these outlets was not directly charged to poultrymen. Plans were later made (but still not carried out) to acquire a modern mill which would meet all the requirements of the region. _2_5_/ LV-l30, Speeches and Addresses, Speech by Nwoje Otue, MOA, undated. '5’ _,.. ,4 '- >..1 s L or- 0" -‘ a . .. .- .2 C. _. . .. . . p. ”but. .s¢ .‘ c. w. . 1! .C .6 . .w. .p. t. C . F” Pd ~ . . .~» 0.“ Q III zc- ‘ . = f-"\ "‘ ~.\.' In- "9 ~- a ~- ~. _37- 3. The extension Service was enlarged and adapted to provide technical advice to poultr ymen. 4. Free training for farmers was made available at the Abakaliki Poultry Center. This was accomplished in a three-month course (since reduced to eight weeks) in both practical and theoretical poultry management. - 5. The control and prevention of poultry disease was advanced by the deve10pment of a veterinary service that provided free vaccination and diagnostic support. 6. WideSpr ead poultry and egg prOpaganda was begun to incite interest and stimulate egg consumption. C. Foundation and Growth to the Present Time The steps outlined by Davis envisioned the establishment of substantial segments of the commercial egg industry at a stroke. None- theless, the MOA with its lack of sufficient staff and finances, had to 251/ phase the introduction of the segments. The basic investment was made by the MOA in a large hatchery at Abakaliki which was viewed as the cornerstone of the industry, providing quality day- old chicks at subsidized _Z_6_/ A segment is defined to be any link in the productive process which involves the provision of some input or action towards the assembly of the final product which is given to be an egg on the consumer's table. _,. o .o' -\ fi...0 ‘ O 4' o _ co ' , ._ ”.1” . -., -4....-o ‘-‘¢-". ,: .0 90 u..-— -_.;-~ Q ...E.. . n . . ‘w-n. . ‘ v~odvoug "' ’-—. - ‘ a F“ O on“..“,. u Ii...“ :3 avg :;‘*-—‘ ‘_ a. ._‘C 4:? . _ . ..... .b- “u. “.e .- . ‘ g'J . . .h- _ ...L‘ z . 0 ‘n ‘. P. V. ~‘e 5",- .-‘ I G ..'_' h V» a .‘ - h 5' -C'~ ‘V~“'fi ~¢ a I n I ..- A- 0| a- V. -33- prices to poultrymen. This first step was taken in 1961. It was followed in 1961-62 by the rather rapid development of the veterinary and extension services contingent to the industry. These services are provided free to poultrymen. In 1963, after having relied upon rations brought in from Western Nigeria, the MOA began operating its own feed mill at 31/ Enugu, which provided ration to farmers at a subsidized price. Subsidization of inputs has been the primary incentive tool employed by planners to encourage private entrepreneurs to invest in commercial egg production. The level of subsidization has been fixed by a general public service principle which is to have the direct receipient of the service pay enough to cover the variable costs of production of the service, the government assuming the fixed costs and tranSportation charges as the subsidy. This policy has acted at once to reduce the cost of the service to the user and to place a floor as to the level to which a subsidized price may be set. Restated, this policy represents a ceiling as to the level of subsidy the government is prepared to support in achieving its nutritional goal. The saving to the farmer, with reSpect to feed, by using MOA feed is about 1. 6d. per pound (assuming that Ell The subsidized price is considerably lower than the price charged from the equivalent input produced by a private fir m. MOA feed cost 3. 2d. per pound whereas Pfizer sells at 4. 8d. Per pound. A day-old RIR produced at Abakaliki, unsexed, is sold at 17d. , below by at least 3d. for a comparable bird by the nearest competetor. - - -‘ C -. ,_.—o¢~‘__.~ A..\ .. ,,.-“‘ ' . r p. - '~- \u. “" .IA - -.— p . ‘ “~-. ..Q‘ -‘ .4. D; .mp .86.». coNoQ pom—magnum mo HoQESZ Enoch. 2.73m: $.8wa shoummm 5 nofiodpoum #030 was pooh .wmm gases-ca MIN 3an 2.2.52. 222:: 2:22:— 2222..._ 2.2.... 222:. 2222... 222.: it... x 132:2: - 12.7...- «‘0‘. ~.w Ifln.-ill z._y_.._.-I!I.I .I II: .I.Inl.l I'I'i 0.1 11'! I .of.lll‘.‘ o. 1.1'II ‘ II I il ill 0 IIII'II-II.I I Il'l'l I- I Qfinn.i z—-.-~ tum-b Th-—.v—~ rm.‘.- z—~.v- ‘d.—.d.- z-pu~‘ n\\~‘~v~< :5..— . .1...— ......_ s-I; .21; TI; . .~.~..- -.s.~ .v....-.~ was. 7‘1...‘ . . . ..:. . o .c..... . u a..” ~.. ..\.........§..o- .u... . u....§ ... ..-v(-7— no u..~v£u..~ u. c .. ........o... _. u. ...o. .0.0 ...t.l.§ n.. .- n. . c u..-‘ u... .Qt .1. . Inc-u ‘. ., P 68.3“ 30>qu Ho 0880me van mpnooon <02 80C .8385 >9 pox—35300 .03 math-2 m: meta-p mwmo cm: 332 so: 2000 008 U089mmm mun “H .9303 35.0 mo 32 wcgg H0033 .m m885mmm paw mdmfi >3 m0 “80¢ 080003 £000: m0 ucoouoa 0* 805 £35 33.8.88 was 03.08 003 30.0.3.8 was 3393 mod-H0330: 20 m0 mpnooou £30: on“ no woman 3.08300 cm 30090.50." you»: do 0003 Ho .3385: 09H. 41- omNHm coo:V emu-m2 ooooo ommomfi ooowofi comp-v ooowm oooom coo“: wwom ouwm 000 oooom oooo¢ ommomfi ooomofi omnw: ooomm oooflV oooom oooom coon: wmwfi 0:; >02 oooom oooow oooomfi OOOONH ooomofi ooovw ommfiw ooomm omNHN 002A wmm CNN “.00 omnww ooomm omNHn: ooooma omnmo ooomn coon:V ooomm oooom coon: n u “now oomww ooowm oommnfi ooowmfi oommw oocoo ommbm ooooN omnwfi ooomfi I I w0< oomwv ooowm oommwfi oooovfi oommw ooowm ooomm ooowm oomha coal .. .. 30h ommom coon:q emu-mpg ooom-E oooow oooom omNHm ooomm ooomfi OOONH .. u 05-h oooon oooom oooova oooema oomph ooovm oofihm oommm comma coon: u .. >32 oomph ooomo come-z ooommfi emu-mo ooon ommom oooam omfi: omow .. n 5.274. omnmw ooono ooomn: coon-ma omnwm coon-v ooomN oooom com-w 0N2. .. u £0.32 ooomq coo-X. oomph: ooooNH emu-mm coo-3V oomNN ooowfi MHNN. 2.5m .. .. 30h ommon: ooomw oooomfi OCOONH ommfim coca-v oooom coon: meow ovom .. .. 80h gm». mam: wwwo mam: 0mm mam: ammo mam: wwwo mcon mwmo mam: £802 com; mom; voofi mom; mom-H $2 ooofiufiomfi 080£0m wmm 33.38800 05 .«0 wcwccwwom 05 0230 8.3wa cumummm 8 Amcouomo 8 “030838; cofiosfluoum mmmm H0 3954 0:0 020$ m0 $5802 NIN “320%. ;. . . . . ’1. pp. A. .g . H C u 1 .. wu. .. u p .3 . . . . . ~ A v . . .u . é. .4 a. .Q C ... Q. .U L :C ‘ p. . .V. . ... 4-. ‘d u . 3.. IV . .5 q .u. . . . Q . - V. P . as .p. —~ .. p d \u L» .c . ‘rt .v. .. .Ad 5. . . .‘s . .04 ~ Q .. . I. .J . .. .3 .L. ... .~. ... u... .3. I. .s. .. nu. :. n .p— .. .L. s . 7 3. .L. .\. L J. .8. .. :5. w. _. . L. a ... .5 .i. ‘.~ a. c . .. to C. .... fl. .% .. . o .u .u . w :- .. .. L. o . .. ... to. L. . .. -\. a... .» 5.. . . A. . . . . . . ~ . . . . . . n O . 0 .‘ t. y» n .u I .. a c . ‘ . o . . . ~ ‘ ¢ 1 . . . . . . V . . . . . . . . . , . . a a n 0 O n u i n I. o v , . ,. . a ‘ . . . . . § . . , . . . . .. . h v n D o u u ‘ . . . ’ . . Q . .u . o g . . . . . . . . . v . I .0 . I . . o I . . . . . 7 . u . ¢ 0- O O O . . . . . ~ . . a . . A .v I . y . . ‘ y -42- imported product by 1965. No record is available of egg prices over this period. However, it is known that from a high of some 7/- (. 98) in 1960, egg prices fell to as little as 2/6 (. 35) by 1964, the time of greatest production. Prices for eggs seem to vary a great deal by area, and fluctuated rather widely in time as well. The prices of eggs purchased at the farm gate in the neighorhood of Enugu from January 1966 to January 1967 were found to vary as much as a shilling; or six pence above and below an average price of 4/- (. 56). A dozen eggs at a cold storage in Enugu were found to be somewhat higher, 4/6 (.63). In Port Harcourt prices were higher, likely a function of greater demand (reflecting that cities relatively with high degree of industrialization and larger expatriate community). Port Harcourt prices reportedly have been rather stable deSpite increasing availability of eggs in the city (although price per dozen eggs of as much as 5/6 (. 77) is not unknown), 5/- (. 70) is the typical price in this market. Suppliers to the Port Harcourt market may be as far away as Owerri, Ahoada or the cross river country; but many large producers cluster closely about this market area. The slump in egg prices in 1965 was of sufficient severity to cause many producers to leave the business. Others found the shortages of chicks and feed in 1965-66 more than they were prepared to c0pe. As a result of these three crises, the industry has now fewer producers - .. - .. ~" I \- , ;. Gu' g-I‘“ .. . v- ‘F ‘ o. . D‘ e '- *~. ~- 7-. -~".' ' : ...~u .0. ' _.. .. -v- “V. .. ..a n.“ _ ... - , _ ‘M .r— >>§ h ...--o --4_~- I-W ~ 0 . p '- . u r so.....‘... . ‘ o ‘ '; -- o.’ ‘ " Jun. -.6 u 0-! a . -43 .. than at any time since perhaps 1962 (about 350). As of January 1, 1967 there were somewhat more than 40, 000 layers producing 50, 000 dozen eggs monthly. Chick production has been reestablished. The critical maize shortage remains a problem. Egg prices, however, have become a sufficient issue that the government in early 1967 undertook an egg price support scheme'. It is still too early (Spring 1967) to note the effectiveness of this program, however, it seems fair to say that the government itself has entered into it with mixed feelings. This attitude is partially due to some disillusionment with the commercial egg project's even establishing itself on a firm economic base, free of support and yet able to meet its nutritional objectives. It is, moreover, necessary to recall that subsequent to mid-January 1966 Nigeria underwent a series of governmental changes. Eastern Nigeria came under a military government which came into office determined to critically review many ongoing programs. The poultry scheme, being very much identified with the former government, came in for an eSpecially critical review. The wisdom of continuing outlays, through subsidies, received Special criticism. The military government asked how a cheap egg could ever be produced when many poultrymen were unable to typically breakeven with subsidized feed, chicks and veterinary support when prices were (1966) about 4/- (. 56) per dozen! . ,. f‘ ... .1» m‘ “ ' .- -. ..a-o-F ‘ " -ulr .\. _. 4"- --.‘.¢ _ u. up. ‘- “‘n~y- . ,c- “‘6 ‘s‘c‘......' V o u.._=5‘. .‘ . .5. ‘ ‘L ’p l O. I n'h." n... -._ -_..\cw F” 'A v1 “fl. .._. ‘~ ~,, ‘5 -t'l ~' ‘ “-C. § P. ‘i‘U Q- 1 Fe” . ~ by. ..‘. A! ,0 I . ._. 4‘ ‘ “‘ch-i ( ‘- ..- \ :N’ V ‘. h, ‘g\ u._ - I‘ "an . 'x'c‘. ‘- ‘.“c¥.. I . ‘ . c:N E Iv" 5. . ~ “Din »‘ -44- On the other hand a considerable vested interest in the MOA existed which asked to give the scheme another tr y, and to extend support to struggling farmers with a price support scheme; although such price supports (practically Speaking) meant the end of the commercial egg scheme as a cheap protein venture. Such a scheme was initiated in April 1966 and then allowed to lapse after July when the region's money became more needed elsewhere. From this time forward the outlook for the commercial egg industry became darkened by the gathering clouds foreshadowing the events of May 1967, and thereafter. 5. . Summary Since 1919 exotic poultry stocks have been introduced and reared successfully in Southern Nigeria. These successes eventually stimulated, in the late 1950's, a desire to deve10p an indigenous commercial egg industry to help provide a cheap protein food. With the guidance of an American poultry Specialist, C. L. Davis, an impressive beginning has been made. By 1967, some 350 producers have hens on deep-litter. Two feed mills (one privately owned) function; but on unreliable supplies of maize. One public and several private hatcheries produce hybrids and RIR type hens in sufficient quantities to meet current demands. A veterinary service has reduced mortality levels to a very low point. In certain areas, a small market has been won. Subsidies continue on feed and chicks while veterinary services remain free. Finally, -45- a beginning has been made towards rationalizing the market structure with the introduction of a publically Sponsored price support and marketing scheme which, by implication, meant that the regional government has conceded its nutritional goal in favor of a smaller but more viable industry, which would become less dependent upon public lar ge s s . "A it ‘. p .. - .'... “433$ Lat 3:5“ ‘ H‘ ~..2 " ~ ‘ 1‘. "$.16, :1“ f9.» 1 ‘ ( N'yl‘“ ' LU......C.\AG£ 2. .f '- nAy- ‘ ‘ gin " P’ L‘ w. «.31: -46- CHAPTER 3 THE ORGANIZATION OF THE COMMER CIAL EGG INDUSTRY "A hen is an Egg's way of making another Egg". Samuel Butler Life and Habit, 1877 1. Introduction This chapter will describe the segments of the commercial egg industry; (as of Spring, 1967) noting the location of its supporting components, its markets, and its essential economic geography. It will review the present status of each segment of the industry from the supply of maize, chicks, and ration through the production and marketing of commercial eggs to the final consumer. Within each segment, note will be taken (where relevant) of the degree of buyer and seller concentration, the problems of entry and exit, .the segment's capacity, and its more salient problems. 2. Economic Geogrflhy Since 1961 the commercial egg industry has Spread its economic influence over a wide area of Eastern Nigeria (Map 1); elements of it may be found in virtually all of the region's twelve provinces. Perhaps 1500 persons presently derive most of their livelihood from some segment .6530 9: E 09896 404014 0 -47- 4mm4 02.0300mn. NN_4_2 INN—4.2 FOE-01a >m._...50n. Z. SE4...— Ouaam I. O moz_>oma .. O 9.: z_ mum-080E co mums-:2 Has- mo..- mum-E8 meow 1m zocoaooma mz_ou<> .. > cram-:02: I I .33 Puma I u ugh-2828 mom mom-q.- uo mqmmq aoazw ozmomq _v__._4v_4m4 455.02 .0 0 >Idmkmooz- 00w 44.0mm2-200 uo zo-»IFWDCZ. (.Iwmv.2 Zmumubhwdu v.0 >IFWDCZ. 00m JAICKUEECC EIF to UKDFUDKFW .. -m. UKDOT.‘ -49- [QOZmDZchrj .J m w I. -- Allll. ._. .1IJ. w m m _ w [ / m-fizom o A memdéc m D o O 9 m n. ..rl| . 1 8530 m5 3 3.633 zomzmb-m _ \flE-‘z-mmcg _ $32693 _ Snaz- \no:mFmDoz_ 00w 44.0mm2200 MI... mo mmskoamhm ”Tm mmDGE 35.53 .-lzdm 5.3.11.3... IV\V/%V qdderdfnwixV I (MN m. 1 298m zmm - .- O K. _ a _ ozmom A/O \.\ «rm-:20. :-,z_zum ... 332m \‘ fem-.mmouum ESP-528 m3 xix-r L. .......... .. 4_mma_z a.“ .2 \)\. . x m2 “Flu-“u .\ x .3 8. oo cc 0 .\ 2 n: 3 x 4 .5 Nlm Q42 _50_ n. K\ 2063- 251.562 Ave #1 .\. «v .N o o 0 4 025- . w E use-<2 o “ J \\.\..\.I./) .\../ 3 o \\ ..l. . 31‘. . OFOX . 9.5 ./ \.\ l.l:\a\.\)..\ I.( /. \ 9-4.- .wl \.. (Ii. \.\..(.\ m m o _ Z t. A . . (”3 . "HF‘! ‘ '.'—.o u .— .4 . . .,.~. ' I “'5 ML" - . .I . . ,-. a. C "an - v- "--‘..~ 1. . ' -u ‘u- _ . M‘ .A.‘. ‘.‘V . ‘ ’ A it“ ' O. ‘ -. ‘ o 0" k. ‘ 5“] F u a .' . k A“, “‘wt ; v ‘n I, h “it 14": ~A - v I'. .‘A. v. I‘U:t Vll -51- to be restricted, on grounds of tranSport cost to the south, in part of the region, however, the uneven level of MOA production and quality has given some edge even in the northern marketing area. Poultry vaccines, were produced at Vom, Northern Nigeria, but are now scheduled to be produced at Enugu, after April 1967. Training and technical assistance remain centered at the Abakaliki poultry center. The economic areas of the hatcheries are not so clearly defined. If a hatchery has its own truck it can service a much wider area than it it has to depend upon its consumers coming to the hatchery. In addition to the MOA hatchery at Abakaliki, a large private firm, Ejinaka and Thornber, operates at Aba. Both of these units distribute their own day-old chicks throughout the region. Three small hatcheries operate at Onitsha and sell mainly in the northern area, without having their own distribution systems. The egg industry is bi-polar, with producers focusing upon one of two principal markets, Enugu-Nsukka in the north and Port Harcourt in the south. Producers Operate in all twelve provinces (Table 3-1). The great majority, in the south, cluster along the line Port Harcourt- Aba-Uyo. In the northern market the density of producers is greatest in a ban running Abakaliki-Enugu-Onitsha. .oomH CH HoocHmeo mpnooou >umnwpouo> Scum Hogan 03» >3 poummonm sofimnomo mo onom wwm m NH mm mm mm oHN >3 poofirnom mics H.308 em y. * o w H. S 95 mm N o H H. 2 mm «338.: mv N H m H. w mm 3.3003me 330nm mo H m HV m HH Hv H5330 . % wv * Ha Hq m H. mm 933.30 . wN V». N m m m mH smusm HVH * "w * H H. o wcdccmw mo m V... H m m o m N 33.2933 < cofimnona .Ho _ onom >3 poHHHmmmHo . H.308 +603q OCOVnoooH oooHuHQH. cow-Hem oomuHom oomnooH 6032309, mvHoEo _ mongounm HUHo..>.A...Hv mo .02 _ mHnomHZ snoummm :H oosH>oum >3 .mHZHmH 0.38 no 03 mfimmommonH so8>bHsonH H .. m oH369... I 'I - -.n o ‘ U . . . . ,',....-0 u-- :a:5;»:r. ,er. ’D'I" I - I. “’91 " I-n-U‘u‘t ‘fl‘m 1 n... l-.- “‘_ . ,. V 4'5 hit.“ AA-C " ‘o-Q n- ‘ ‘ F I“ '4 '55» C. .1...- "~ .. h u.h_,. \i-. I has». A. ‘n. Y 0 n ‘“"- l. . 2 “\~. ~ . ‘.““J‘Sl 1w 4 ~ :o.‘ “A ‘ 4| an ' u &..C c u. ' “r~. n“‘ .qu- Ir- ~‘».. I- u ‘M u .; ‘y \c ‘- ~ :‘tn 5 h", » ‘ ‘~.:‘ 1'- :‘ u s. -53- Prior to 1967, farmers had to individually find their own marketing outlets. Eggs were mainly sold at local markets, ungraded. When tranSport permitted, the farmer tried to move them to a city. Geographic diSpersion of producers has been a heavy burden to the development of a modern industry. Inevitably, many poorly located firms (and there have been many of them) felt adverse markets first and most violently so that a number have gone out of business. Jobbers have supplemented a difficult marketing situation, but inadequately. Regular supplier—wholesale-retai1 contracts have come slowly. Storage and safe tranSportation facilities are still in their in- fancy. It was to help this difficult situation, and to provide aid to vociferous, but ill-sited farmers, that the egg marketing scheme was begun in 1967. The egg marketing scheme has so far operated exclusively in the northern (Enugu) market area. Eggs are collected from many points in the area, some of them quite remote, and tranSported to a collection center in Enugu where they are processed, graded and marketed. Plans to establish a second station at Port Harcourt have not yet materialized. 3. Outline of the Productive Process At least seven separate types of ”input" must be provided on a continuing basis if commercial eggs are to be made available to the final , ...~ '3 V‘“ . . - 1 :-::““e" hA-c ’ “It w’ F’ - ' . ' - "3,”? ”$.41 1' I . ‘ - l “ , “ ' t ~I! w" A ‘ - ‘ L... ”.5; 3"» I-“ - . ' a \l..’._ ' , , 3.5.1. — . ' 7 , , ‘ ' 1‘0”...“ econ-La - ' ' ‘ 2318, ms , , a . - u . . . . -~;n:e,. ' J» h 0“ . . . . _ , . . W“ -.~o ‘ "'\1Cta:,' u- ‘ IV. Un- "‘»a in, , 4 r1. 0 ‘ . ‘ . ' ’>:_ ‘ iced IFN‘ .c. 0.5.12. . ‘ (”v-ti, ".1;- .3...“ V l t -54- consumer: maize, poultry ration, day-old chicks, veterinary support, credit, management of egg producing flocks, and the egg distribution and marketing system. Each of these segments will be examined. 1 A. Maize Production and Marketing Although a beginning has been made in regional production of NS-l maize, most (over 95%) of the quantities needed by the local feed mills must be imported from outside the region. The major source of maize has been numerous small farms located in the “Middle Belt” which is a broad east-west section of Nigeria including the Benue and upper Niger river valleys (Map 2). Maize producers sell their small individual lots of yellow maize to one Or several of the numerous petty jobbers active in the trade. Several levels of middlemen Operate between farmer and miller, each moving the rnaize a step along the marketing chain. DeSpite this activity, millers 0f ration compounds have experienced gr eat difficulty in obtaining Sufficient maize. Maize becomes available in December and January. The miller must himself buy and store the commodity then as contractors rarely have Suitable storage facilities. But storage is a problem. Pfizer claims \ i/ The background to the maize problem is covered in greater detail In the appendix. The data in this section was given orally by Mr. Russell Gillham, Manager, Livestock Feed Ltd., Lagos. . . . . .0 \‘ HR '- Jc. .tu ‘ v |‘« "...\-.” . an“ “UCH . ..-.,,‘ _ i I -.a,.t‘r’ C ;;';-o;. 'l“ I .u.““.c‘.\ . ‘t.,_‘ 'I..: Q‘W-u « Uiqu‘ l 1' o v I \ Ia»- -55- that it costs L10 ($28) per ton, which includes the bank overdraft on the substantial investment in inventories. Notwithstanding the problems of collecting and moving maize from the widely dispersed maize producers feed needs were met until 1965. Producers had apparently reSponded to rising demands for maize by poultr ymen in Southern Nigeria and increased their plantings. By 1965, however, demand moved considerably beyond what farmers were willing or able to produce. The view is held by millers and the MOA, that these essentially subsistence farmers had reached the limit of acreage they were willing to devote to non-subsistence crOps. In reSponse to "what has come to look like a permanent shortfall in maize supply, the Eastern Region Govermnent is considering encouraging maize production by a price Support system. Q B. fiovision of Poultry Ration Production of poultry ration is unequally divided between the MOA 3/ mlu and the private compounder. Both mills buy maize from the same SourCeS and experience common difficulties obtaining it. Each mill tends \ é/ The data in this section was gathered orally from Mr. Russell Gillham, Manager, Livestock Feeds and from Mr. D. N. Ajaegbu, Principal Agricultural Officer, MOA. 3 . ~/ :Total annual feed production, by all producers, in Eastern Nigeria 13 shown in appendix H. c .«;~m'p1~0€ Op, 7 .- .J....-.G. ‘AA _ Co‘nn a.._.; ¢ . IN: (I: a. up.. u . H. ...G, I n..._ '- Q' . .,_ _ r 2.1....Lm.» __ . I A 2?C=’.'.’C€l') no; . _ ‘ (.C‘: 1n- HF”..‘ vvu .u d“““-. "P: .. ,,., . - , , ' \L-.. ,‘ "‘Gr: ./ I.l -56— to dominate the market in its area in Eastern Nigeria. Persistent rumour 4_/ has suggested the establishment of a third private mill. However, neither the maize supply, nor the present institutional and market constraints (Specifically the MOA's determination to continue its role as a feed producer) would support a third feed mill. The market division that presently exists reflect a combination of economics and competitive effort. The MOA, which assumes all tranSport costs in addition to selling a subsidized product could, if it wanted, under- sell Pfizer anywhere in the region. Pfizer, having to push tranSport costs forward to consumers, is limited to the southern portion of the region. Although it has outlets all over the region, Pfizer sales are concentrated in the Aba, Umuahia, Port Harcourt, Uyo areas. The MOA has made no serious effort, however, to distribute more than token quantities in the south and as a result much of this market is left open to the private firm. A second factor has also permitted the producer of the relatively more costly private product to remain a competitor. The manual mixing techniques used at the Enugu mill have allowed variations in feed quality of some considerable degree. Although the formula in use is satisfactory, t . . . . he degree of superv151on over the use of ingredlents and over the men \ é/ The author prepared a survey of the prospects for such a mill fOr Arthur D. Little Co. A synopsis of the findings appear in a-ppendix G, with their permission. ..'- ou- _ ‘.'—- fix: I...- ‘0‘. . . ‘ .9-' .n n ”A,“ x ”,3, l“ .6..LJ. q . . I - I I'% '35 In ':.»..C».u «V l 1 ., . ..,A,. t, ., .4 a «lul. tut iv" 1 ‘h A nay: W‘ 6 nuts Ubolgc .- .., 32; recur “c f' - -' . 1' ._:::C‘:“ r: A l ‘Ji AI 5: . 33:3.” ”A: 1,.“ . “le O- Id) fl ,. -57- with the mixing shovels leaves something to be desired. Farmers have noted variations in the quality of MOA ration purchased, and have responded by buying the more expensive Pfizer ration (which is mechanically mixed). Other farmers buy Pfizer concentrate and mix their own feed. Still others mix the two feeds together. The levels of output so far attained by the MOA is far short of the total required by the industry. The regional mill has an estimated daily Capacity of 12 tons. Pfizer, has a daily capacity of 15 tons. If all these sources were used to capacity five days a week they could produce something in excess of 8000 tons of ration annually, but this level of output has never been attained (See Table 3-2)- s_/ C. The Chick Input ‘ Considerably more firms function in the provision of day-old chicks t9 Poultrymen, reflecting relatively easy entry, the wide variety of breed tYpes and qualities available, and the extent of the final market for chicks. The MOA-operated hatchery at Abakaliki is the oldest and largest Operation having distributed over 700, 000 day-old chicks (RIR) to poultry- men since it began operation in late 1961. The hatchery has the capacity to produce half a million day-old chicks annually. Although it distributes a dualrpurpose unsexed bird, the relatively low price (1/6 or . 21) and \ El The data in this section was gathered from interviews with the Ihanagers of all the hatcheries, private and public, presently Operating in Eastern Nigeria (1966). .mcunfl o3» >3 poHUH>ouQ mpnooou Eouw H0333... >3 poHHQEoU .oooH no3§ooo0 Mom msou com Ho “5350 monarch—mo cm msHHosHosH an mocm some 33 3: H309 . oo 5 _ .woome 3am. Rem - 833 ct: 3.: $3 3: <02 .82 $2 $2 $2 aceiaccccoam Hmsou puosm :3 90035.33 >3 .mmuomHZ snonmmm CH coflosHvounH Hooch 23.5us HSOH N um 0H3MH. . .mam .t.. WAT V- n I .o ’v- ny- ;t..u . .‘ :4 x .u- s, v» i. ,. .... "it .... -. ‘ . .. . ot‘t .. b,- «1' r1! ' I 1 to... _ “r v...:..fi 5,, t. , u.- IR 'k‘ be... .. .. ' ‘IA i b " "“ an.‘ ‘I. a h:~‘_c.I.‘ .;'a_ -’. . “"ufil 'Fv ]. at :l' u ufi‘ "VG, . . . “ .2. aux‘ -59- lack of supply of alternative stock has allowed Abakaliki to remain the most important single chick producer in the region. MOA-RIR are found in every province; and almost every poultryman has had some experience with them. The MOA product has in- turn been adopted as the foundation stock by three private entirely Nigerian- owned hatcherige/s, Lincolndale at Onitsha and Aba; and PAC and Chukwurah at Onitsha. Together these three firms share no more than 21 percent of the market. They all offer unsexed RIR or “mixed" birds largely to the Northern portion of the market. Lincolndale has promoted its product aggressively and has been relatively well-financed and managed. But these three firms have experienced increasing difficulties in holding their share of the market. DOUbtless the MOA's problems with disease at Abakaliki have helped private hatcheries (Table 3-3). The largest private hatchery in the region is Ejinaka and Thornber of Aba. As the name suggests, it is a Nigerian - expatriate partnership. It entered commercial production in early 1966. Offering sexed hybrid Chicks delivered to the farm gate. The hatchery is located in the midst of a large cluster of poultry farms and is near Livestock Feeds Ltd. It is also central to the rail and highway communications within the region. 6\ ‘l The hatchery segment has been the scene of an interesting manifestation of local entrepreneurship, covered in the aOppendix. .mEHHH m3» >3 page/0.5 mpuooou Eonm nofism >3 poHHQEoU .3308 you $330 HvHot>mp 000 .N sees 0.35 on «mowwsm innuendo ESEmeE Home mmmo >no3oum3 Ho mmwfluonm p.93 .cHwMSBVHEHD cw O3 ”Box 533 o>d3 mpnooou 07H * coo em EN .3 a? .3: S... :2. H309 H: 63 80.2 imam 3a.? :3..on ccS Hie: 08.2 - comes HeNdN $3 . weo.ecm ooo.NH - ~e~.mm cee.m~m eceH ,oe 3e .2: .. .. .. ed. .2: $2 . H2 .Nc - - - H2. .3 32 m8 .3 - - - mmc .em 32 9039338 38... am $50 s 33:30ch <02 .mvacHflH use? m noospo nnH moHnoaHoummH 023an new HmHouoEEoo >3 mHnomHZ cuonmmm 5 oboH no3§oooQ on a: 3330 Mo 35330 HmsccHw H.305 m In 0H3NH. 9;; :LCVY‘ mas : U" ,u u: zaztztzes 01 s 7.....'- fl‘u’ ‘ C0 '6 is N.‘ ...v . .v . u~e~—-.,.-, 9,. Iva-o:ru A LA ’. h n _. $“C L4 . ”7... 'W "“H- an if ZEITLPZI ‘. “It." 3021 I ~.._= arr; -61- The firm has made available, for the first time in Eastern Nigeria, quantities of sexed, hybrids, egg- specialist stock. The early success of this company in introducing a significantly more expensive bird (4/2. 8d. each or . 59¢) has caused the MOA and the other hatcheries to reconsider their emphasis on dual-purpose stock. The Ejinaka and Thornber hatchery has considerable equipment located in a modern building; four incubators of 18, 000 capacity each and four hatchers of 6, 000 capacity each. A breeding flock is kept near the hatchery which is replenished three times a year with a new parent flock from the United Kingdom. All chicks are color-sexed and sold as sexed day-olds. A growing market is being won by these single-purpose birds, and perhaps 20 per cent of all farms have them now. Source of All Hens Presently on Litter (1966) MOA 44 percent (RIR) Ejinaka 8: Thornber 35 percent (Hybrid) Lincolndale 16 percent (RIR) PAC and Chukwurah 5 percent (RIR) 100 percent . ‘ I‘l'P o a. A .1 ",. Satan .- .3 ..,\ l“{. an“- —.;~ a“. ~ . "H...“ t... .lbw"1 u¢~~‘I v .Y-I‘fi , F‘ Haun~¥~t u .- \"\‘. uo~..“" ‘-.’. .‘ ‘ 7-. ,. -. '1‘ ‘l ~ A» O C“! - W. A "‘ "a“ ‘1» .C" . ‘-I‘ , . ,, "EC: \ 7.. ..._, s «.19: h- \.,_ ~.\( \. u‘.i€ t“ ' u.‘k -62- Poultrymen in their demand for day-old chicks have persistently kept ahead of supply. This demand, associated with the decline of output from Abakaliki, has led producers to be uncautious consumers so that some very poor flocks have been put on deep-litter as egg producers. It seems clear that with one egg Specialist hybrid available in quantity, and with growing experience in poultry management, the market will make a substantial shift to sexed chicks and specialist stock. Originally, the MOA Opted for the dual-purpose bird on the ground that the extra income from the cockerels would be a useful sideline to poultrymen. In practice, however, it has been very difficult to sell large numbers of cockerels at 12 weeks of age (when they should be disposed) and farmers have often found themselves with flocks of males in excess of 20 weeks of age. This rather typical experience is putting pressure on hatcheries to sex their chicks. Small hatcheries, unequipped to do 1ihis, may on this account fail in the long run. 11 D' The Veterinarj Factor Government veterinary services are provided free to poultrymen. The Very real threat of fowl epidemics was one of the inhibiting factors t hat had to be over come before a commercial poultry industry could be \ ll The material in this section was obtained orally from Dr. Frank Siccardi, Veterinarian, Faculty of Agriculture, University of Nigeria, Nsukka, and from a general reading of the records of 1lhe Veterinary Service, MOA, Enugu. -63.. successfully introduced. Mortality among flocks on government farms in Eastern Nigeria in 1960 was as high as 60 percent. Today the figure is 15 percent. The government recognized this problem in the early 1960’s and included an expansion of veterinary services in the Eastern Nigeria Development Plan under project 13. ". . . for the expansion of Veterinary Services, the objectives of project 13 are to turn out large numbers of inoculators, to give existing staff refresher courses (for which existing facilities need to be expanded). . . . ”, ". . . The Veterinary Training School will be expanded to train more Veterinary Assistants. . . . " §_/ This project has been implemented. The Chief Veterinary Officer reports that veterinary services are widely available throughout the region; thirty-eight stations staffed by nearly 140 veterinary superintendants, clerical assistants and other staff. This group is supported by a USAID veterinary advisor and a pathologist. The success in develOping this wideSpread service has been acknowledged by poultrymen, 70 percent of whom, when asked of their problems in obtaining veterinary services, reported having no difficulty (Table 3-4). A number of services are provided to farmers: (l) diagnosis of diseases, (2) treatment of diseases, (3) inoculation, (4) advice to farmers _8_/ Eastern Nigeria Development Plan, 1962-68 (Enugu: Government Printer, 1962), page 32. P-.v~.->»--..-- u—..v-n-.vH—zrdV~ >.. .uruutI-vA-.v.- l 19' v—.I-h.u!i. >.-av.-.-:-—tu> I---‘¢1-A.Av its ion-o--.~Avonan c o luv-Gin ooH H.308 N Hmaosow CH ooH>nom noonH N >Houmn >3 mogoo >nmcwnouo> m cocoon G033 oH3mHHm>d qu -64- m oH3mHHm>m no: mmdup occom 3 configure choahcefi. on mEoH3oua 07H mcfluomom coflnomo unm @030 8330 HnH soE>flHsom Hcopcommom >3 pouuomoh u woof/mom >Hddmnouo> median—30 mo mEoH30hnH Hy um 0H3QH. . «M um. ‘o-Ilil 'J‘ . ”ex 'IJ I ,H.L H... . I‘J’,‘ ’O‘ t.» r- 56“ .2 “-0.44 . l ‘- I' -.., we» w‘ r 5A a 0 c ' Y ’_--a. h" ‘VCA N. * t'; k.. “‘* but: I .1. Y “ ¢ .‘ 1 s 3" ‘ I _55_ with reSpect to health practices, (5) supervision of imported chickens (into the region), (6) sanitation and detection of diseases. Farmers have reported that diagnosis of diseases has been less than satisfactory, in that the time lapse between seeing a bird die and a diagnosis returned can be considerable - even several months. Local veterinarians attribute this to the shortage of staff and facilities. The inoculation program alone keeps the staffs fully occupied. All day-old chicks sent out from Abakaliki are inoculated, and a subsequent second inoculation is also required. However, Sheppard argues that the staff of 140 veterinary superintendants, clerical assistants and other persons ought to be sufficiently adequate to 9_/ more than handle all present claims upon it, if efficiently utilized. E. The Credit Factor In 1963 the Eastern Nigeria Government established a fund for Agricultural and Industrial Development (FAID), to finance loans to farmers and businessmen. This fund remains the only important insti- tutional source of credit to poultrymen. Since 1963 (up to mid-1966) the poultry industry has received L23, 709 ($66, 360) or about 7 percent of the total amount advanced for all purposes; some L 350, 000 ($980, 000). To be eligible for a loan, a farmer must have kept 250 layers in a deep-litter house and have had at least six months experience in the poultry business. The use of the loan is closely supervised and, when 2/ Dr. Charles Sheppard is a poultry Specialist with Michigan State University, formerly on the staff of the University of Nigeria, Enugu. .c‘ - v . H ' I. 'auvonu’ j- o v t a. "-5-. ,k u»..._ , .. q ‘r--- 1 “Ci-a _ , ;-.. .-. . '-...L:_ -. V. I r. I an a: L ‘w._ . w; "-cn. \ "nn " nut: ? . ._ P. a. . ‘C-L :\ ‘ -66- possible, credit is extended in kind - chicks and feed - rather than cash. Cash loans are extended only where the intended purchases are not provided by the MOA, or a purchase order is not honored by a supplier. Although loans have been available since August 1963, the first loan to a poultry farm was not made for nearly a year. Up to July 1966, some 389 applications for loans had been received from poultr ymen of which 21 had been approved. The recorded distribution of these applications and loans are as shown (Table 3-5). y F. The Producer Of Commercial Eggs Although entrepreneurship in the commercial egg sector will be examined in some detail in the following chapter, a general over-view is presented below to represent the poultrymen as a group comprising the vital segment of the industry and the focus of most of the attention of this thesis. Producers of commercial eggs are found in every province Of the region. However, some 60 percent of them Operate farms possessing less than a thousand birds. In terms of numbers of hens in production in each marketing region, some 55 per cent appear to be in the northern area around the Enugu market and 45 percent oriented towards Port Harcourt. _L 12/ The data in this section was developed from personal interviews with farmers by the author, and from a general questionnaire directed to 100 producers, described in the appendix. .oomcH rows-CH CH Dish Ho mHOHOOOH Sod Hogs-m >3 HOOHHQEOO mama so» .3 a 3. gm Heece u .. HH commas? . . om O>D Em .H H 8 e298: u .. om 3550an3 «mom wee .N N me the-so c3 .2 m ac aces-co mHo .H H H H whomO . M mom :v m 00 SwdsmH - u u H daemon - - N Haces-ad .. u HN mcmcc< 2N .m A s em 3233... cdod H0 633/ 332 9.504 Ho .02 muchHHmmaea mo .02 mongoum 3.3sz ~863de Eden; .SHSOQ HOH 33qu .HO mung-Zea was .HOH msoHnmoHHaaa-w m ..m 0H3dH- _- .4- n. .D \ .‘AU' [-1 ... rug 9—04 “.3 ..-.. . ’ 7‘ n-va \ . .-- < I'Iy.\ .4. u q . .1 '. “ski: “L"“v "DI.~ . 's a La’ . I l y‘- 1h... . n n, a.‘ -68.. Entry into the business is not difficult - perhaps as little as L 100 ($280) would suffice to establish a house, rear a small flock and hire a single helper. Larger scale activities (500 birds or more) require at least L 350-400 ($980-1120) to enter the business and rear a flock to point- of— lay. Exit is somewhat more difficult when a laying flock is on litter. In practice an exiting poultryman may let all his layers play out their active lives and not replace them with new grower flocks. The countryside is dotted with the skeletons of former chicken ventures. There are at present approximately 320-350 producers who have at least 100 layers. It is difficult to estimate how many persons have been in the business since 1961. The survey made of producers presently in production, as well as government records, suggest that, in all, some 800 separate producers have been active in commercial egg production. The withdrawal of some 500 poultry farms over a six year period can be explained in large part by the history subsequent to the establishment of the industry in 1961; sharply falling prices since 1962, difficulties in obtaining stock in 1965, shortages Of feed in 1966, and less than hoped for rates of return on investment reported by many 11/ poultrymen interviewed in the course of this study. m / Almost all producers use the deep-litter system. However, a small number of battery cage operations are known to exist around the Port Harcourt area. One open range farm was found in Enugu province. .1. .- H. q .- ... t'lv h . . ..a q... C... ‘.c I :.a 1. .C..ue any: Duos-1 u... a "3‘ .0 .1», ' if pr< ;:53‘r . (“S 0: Satiite -69- G. Marketing Commercial Eggs The egg marketing system in Eastern Nigeria may be considered in two phases. The first covers the period 1961-66 when a "free“ market existed for eggs - when producers had to sell their own produce, and deve10p their own outlets and sources of market information. The second period began when the government price support program was introduced, after the first system had clearly failed to cope. A third period may be opening as this publically supported scheme is handed over to the poultry producers cooperative organization. The experience of the early phases of egg marketing have been remarked upon in several places above. It seems fair to say that planners assumed that marketing would take care of itself as the traditional propensity for trade asserted itself. To whatever degree of such practices did in fact occur, these appear to have been swamped by the unheard quantities of eggs which came into the market once the products of Abakaliki went into full lay. Nothing in local experience prepared Nigerians to cope with quantities of eggs measured in the tens of thousands Of dozens. Existing local markets were soon satiated, and facilities did not exist to store or tranSport the _70- 1__2_/ balance. The lessons of the first four years of the poultry project have been clearzmarketing channels, information structure and efficiency must be sufficiently developed to COpe with the volume of egg production forthcoming from the modern commercial egg industry. To begin to meet this wide and stubborn array of problems, the Executive Council (in 1964) directed the Ministry of Commerce to .1/ Prices for commercially produced eggs have been on occasion severely affected by competition from the government supplied farm settlements and the Eastern Nigeria Deve10pment Corporation (ENDC). Farm settlements, of which there are six, are another agricultural development program of the Okpara regime. To help settlers earn a supplementary income before their regular cash crOps come into production, poultry enterprises were established on some of the settlements. The original scheme was to advance each ‘ settler 50 chicks, as well as feed, which he would repay from the proceeds of egg sales. This program was begun in 1964-65 on five settlements (Boke, Erei, Igbariam, Ohaji and Ulonna) when each were given 3000 day-Old chicks (RIR) from Abakaliki. The settlements raised these up to about twelve weeks of age in a central brooder house and then distributed the growers to the settlers who had constructed small houses to receive them. When egg production began the eggs were received by each settlement's COOperative store which in turn sold the eggs into the Open market. It is at this point that the scheme came into conflict with non- settlement private producers. To diSpose of these eggs, government officials in Enugu associated with the farm settlement scheme resorted to very aggressive sales procedures which caused egg prices to fall as low as 2/6 (. 35¢) per dozen but more typically to 3/- (. 42¢) per dozen. This situation was temporarily ameliorated by the cessation of supplies of chicks to the settlements in 1965-66. However, at the present time some 30, 000 sexed layers from Agege, Western Nigeria, have been put into farm settlements, which birds will once again produce quantities of eggs that may be centrally marketed. -71- prepare a government managed marketing organization to handle collection, Q] transport and distribution of eggs from farms to urban areas. The goal of the pr0posed organization is to ensure that both producers and consumers are assured of ready markets, stable supplies and ”fair" and stable prices. The regional marketing scheme was designed to serve the following purposes: 1. Reduce the distributive costs both to farmers and consumers. 2. Enable farmers to use their time more effectively by being relieved of the problems of marketing. 3. Ensure the regular movement of eggs from the producers to consumer areas. 4. Raise and maintain the quality of eggs produced in Eastern Nigeria. In practice, the scheme collected and assembled eggs from producers and tranSported these to the main collecting point of marketing in the northern part Of the region. A second collection point was planned at Port Harcourt but never Opened. At the collection point, eggs are graded, stored and eventually distributed either directly through marketing scheme kiosks or to retailers. m E/ The material presented relating to the COOperative marketing scheme was given me orally by Mr. Frank Moore, FAO technical consultant on poultry marketing to the regional government. The use of the term 'COOperative' is euphemistic, expressing a long- term hope. In fact, it is entirely government sponsored and Operated. -72- The scheme was designed to buy all the eggs produced at set prices. The scheme set-up collection routes with Specific egg collection points along them. Farmers are reSponsible for bringing their eggs to these points — from which they may be collected in a government van once or twice a week. Farmers were not paid until their eggs had been graded, a fact which became a source of irritation when payments were delayed as often happened. Mixed eggs received from farmers were paid at the rate of 3/6 (. 49¢) per dozen. If the eggs were delivered to a storage Station (Enugu, Abakaliki, Aba, Onitsha, Port Harcourt, Umuahia, and Uyo) an extra 2d. was added. The scheme in turn retailed these eggs, graded, at the following prices: M Per dozen without carton with carton Extra large 4/- (. 56) 4/6 (. 63) Large 3/9 (.53) 4/3 (.60) Medium 3/6 (.49) 4/- (.56) Small 3/- (. 42) 3/6 (. 49) If the eggs are sold to a store a reduction of 3d. per dozen eggs is registered. -73- As originally planned the scheme was to be run by the government for a period of at least three years and then handed over to the Eastern Nigeria Farmers COOperative. In fact, this schedule has been radically ac celerated. The scheme, as sketched above, went into operation in February-March 1966 shortly after the Nigerian army assumed control of the country. Eggs were purchased as planned and egg prices were stabilized at about 3/6 (. 49¢) per dozen at the farm gate. Many farmers, of course, tOok the large eggs from their output and sold these independently while giving the balance to the scheme. Nonethless, the scheme took in large quantities Of eggs and in fact exhausted its initial capital of L 30, 000 ($84, 000) allocated for egg purchases as a revolving fund. Sales proceeds were unable to cover these outlays - consequently egg purchasing was halted in April 1966 and reOpened again some weeks later after inventories had been cleared. By June 1966, only two months after the recommencement of the Operation, substantial volumes of eggs were again On hand (Table 3-6 and 3-7). In November 1967 the prices paid and asked by the scheme Were somewhat altered (Table 3-8). The principle criteria used for Setting these prices was to obtain the best prices consistent to clear Stocks of eggs held by the Scheme. .32 Joe-.32 mercies/H ass-om 0-; O33 >3 oH3mHHm>m opme HmHHonE Scum Hogan 03» >3 HooHHQEoo 3mm s03 ewe .8 am Se 3. :eEm A“. E. Mme .2 8382 7 - mm wee .w emu-3 e mam .H emu-3 esxm HSOH Ho “coouom msONOQ OH 33:3.0 opan 32 case 8 £2 Ea... .Ogo3om magma-Hafiz mwuomHZ “:onde 03» >3 VHOOum one: mopmflu mwmm \ 0.». 2an .SE £833. mcsexeez 3::an oar-H 033 >3 OH3mHHm>m opera HdHHoHdE Eonw Honudm 63» >3 HOOHHQEOO .3an .HHHHQ3an 6935.8 5630an cmH.mm nmw so + H353 co >uouco>cH E as .s NoN .oH Nom .oH Ho3Eonom . Hem .c omw .NH chews... 5 7 a q - moo M c8 3. :3, 2:. .H. Heme .c cash saw .NH m3 .0 . .32 was .3 mNm .3 3:3 msouom 5 monm msouofl OH moms3o udnH 33:32 $3 acreage-em 8 32 she... osmium magic-m2 «H.832 fies-em 2: .3 came. no mess cc... ease-H % .SE .836... annexe-e2 >.BH:OnH 0.3m O33 >3 OH3mHHw>m opme HmHnonE 803 3033.0 of >3 HOOHHQEOO «~qu 8e; 3... 3e; 2... as; Q... as; Am Sea EN am; im - 3m; -2. am; at? am; Sm 8.: 3... 3e; 2m 3a; .3 we 8.: m). she is 3...; {3. am; 3m 3e; 3m sec in H3; 3e 8.: 2e 8.: 2.. 3m; .3 am; Em 8.; 3m :8ch 5:5 3 :8ch 5:5 coca-e0 oz comma 2. 83h co HH-Bmm oHsmoHo-H? HHmEm 85:52 mm and ow and .m Hun-am team oooH AO3EO>O7H HOHH< oeo3om mafia-v3.32 >3 Humva< Hose Edam mooHHnH I‘IIII‘III-IIIIII mum £an d ‘ v—4I V.‘ . n .‘§5AQU . g... AJ§ / .. 77 .. 1y H. The Consumer This section will briefly identify the consumer of commercial eggs, five years after the inception of the scheme. Prior to 1960-61 the consumer is believed to have been typically an expatriate. This belief is predicated by the high prices charged for eggs. Egg eating seems to have been a British custom which came to be imitated by Nigerians. Although eggs have been eaten, their popular consumption (fried and as omelette) had to await the introduction of suitable cooking utensils. Prior to this eggs went into the pot along with other ingredients or were served hard-boiled. Surveys taken in Calabar, Enugu, Onitsha and Port Harcourt suggest, that regular egg consumption is still concentrated among the higher income groups, and expatriates. Significantly, the most robust market is Port Harcourt where the largest foreign community reside. Egg consumption was also found to be strongly influenced by education. PeOple with higher educations, even with less income, seem to buy more eggs than less educated peOple who warn more. Price seems to be the most important constraint to increased egg consumption, reflecting the high income elasticity of the commodity; 74 percent of the reSpondents said they l / The data deve10ped in this section was gathered by the author as — part of a consumer survey done in four cities of Eastern Nigeria during New Year's week 1967. The methodology and elaboration is presented in the Appendix. The findings of this survey are detailed in Chapter 5. lyu . 'vn- o ‘n A. (J (Th [1 (Y! -78- would eat more, if prices fell. Conversely, only eight percent ate all the eggs they wanted. Only two percent rejected eggs as a food. Location, reflecting income differentials, also appears to be a. s sociated with egg eating habits. However, egg eating customs and taboos do not appear to be locally Specific, at least in Eastern Nigeria. About 20 percent of the reSpondents reported they ate an egg a week. On face, a great deal of progress must be made, if this is to remain the criterion of success before the region's nutritional goal is realized. 4. Summary There are two important markets for commercial eggs in Eastern Nigeria: Enugu and Port Harcourt. Commercial producers tend to Cluster about these cities. A separate feed mill meets most of the needs of each market area. Feed is becoming a critical factor in the region due to shortage of maize which is largely imported from the Northern Region. Nearly half of the day—old chick production is produced from the MOA hatchery at Abakaliki, which, with three Nigerian-owned 1“hatcheries sell RIR type stock. The largest private farm, Ejinaka and Thornber, produces a hybrid egg Specialist chick which is now sold throughout the region. There are at present some 350 producers having 100 or more layers. They are supported by a modest public credit program and a very -‘-v\n’| usulua I «,_ m. ...C ;r-: l v“ ”a. -79- comprehensive veterinary program which inoculates, as a free service, a 11 day- old chicks. Subsequent to several years of marketing difficulties on the part of producers, the government of Eastern Nigeria initiated (in 1967) an e gg marketing scheme in the Enugu market area, later to be followed by a region-wide program. Although strides have been taken in widening egg consumption, the market remains largely restricted to the well-to-do Nigerians, as a regular consumption item. Income is the principal bar to greater consumption. u- .. . ("\l o- -80- CHAPTER 4 THE PATTERN OF EGG CONSUMPTION IN UR BAN EASTERN NIGERIA ”Half the world does not know how the other half lives". Rabelais 1 . Intr oduction The objective of the commercial egg project was to promote egg consumption among all income groups in urban areas. To gain some appreciation of egg consumption habits in Eastern Nigeria cities a consumer survey of four cities was undertaken during the last week of y 1966. Although a cross-section survey, such as this, cannot estimate the effect on eating habits brought about by the poultry scheme, it can tell us which groups presently eat eggs, in what quantity, and how often. It can, moreover, tell us something about the consuming groups; their general consumer habits, levels of eduction, vocation, size of family, and diet. _l_/ The details of the methodology used in this survey are outlined in the Appendix. The survey was conducted in Calabar, Enugu, Onitsha and Port Harcourt: 120 interviews being attempted in each city. The sample was designed such that half the interviews were done in low-income areas; and a quarter each in middle and high income locations. -81- Using the data developed in the field surveys, this chapter will attempt to indicate and account for the pattern of egg consumptions and identify the consumer of eggasf. This information will be used later in the thesis as a benchmark on which to evaluate the egg scheme and as a basis for policy recommendations. 2. Family Income Patterns in Four Cities of Eastern Nigeria The sample survey provided information for a representative picture of egg consumers in different income groups. The average household income found in the 'low' income sections of all cities was L 76 ($213), which divided among the typical household of fifteen persons represent a per capita income of L 5:1 ($14). Most (87%) of the reSpondent families claimed to have only one full-time wage earner. Urban family income is supplemented by food raised on the family farm and sent to the family members residing in the city. Urban cash income 18, therefore, to an unknown extent, supplemented by subsistence activities. Family income levels (Table 4-1) have been worked out for each income group for each city studied. ¥ E/ It was originally intended to use the income-consumption data to develop income elasticities. However, the computer print-out with the data and the original questionnaires were casualties of the civil war. O‘N— .IavV\ .. ... .- 7 -82- .mofiwo 350m c3 >953... Headmcoo .m Eon.“ uofism >3 woumaonm ON m .2 m .s m: 02. x: 3 $3. 3.55 2... mm 2 m .w A: mmw wmm Nu wmm 91300.33 3.3m wN N3 m.m m3 mi. om: mo omm @3330 am 2 o .m. 2 m3. 2: E. 3N smscm mm 1m S 1m m .w 1m m3 ¢N¢ d omH 1m we 1m o- 1m um3m3m0 lflmwm 55:52 Bod 203 cow Jom 1m oom 1:: d 003 ..o 1m moo ED 08005 .5953 oflm 333 85:52 Bod 39mm 5 «acmuonm pom owmno>< masonU oEoocH 08005 >ZEmh >30 oEoocH finance. ommno>< s3 mcomionm >3 oEoodH gasses ommuo>< finances ommuo>< 33 .3332 583m a“ $182.6 mOquU Hdoh was deOHU oEooCH woavsum woke—H. o3... mcofimw OEOUGH >~m5mrm 73:25.. Omaho>< ~ Iv 033MB 54 I. ‘1 -83- It is not possible, from this survey, to estimate the proportion of the urban population which falls within each income classification. However, it seems safe to assume that the representative family in a given city would very likely fall within the low income group. The highest income group is composed of expatriates, a few very senior civil servants and the most successful (but small in number) Nigerian businessmen. The middle income group includes the civil servants with a high school education, and a number of successful traders. This group appears to be much more numerous than the high, but much smaller than the low income group. A guess would classify 80 percent of the public as low income, 15 percent as mid, and no more than 5 percent as high income families. The effect of this distribution upon the absolute market for commercial eggs must be borne in mind while considering the findings of this survey and relating these to the wider problems Which confront the commercial egg project. 3. Food and Egg Consumption Patterns in Four Cities of Eastern Nigeria ReSpondents were asked whether they had consumed any of fifteen different foods 'last' week although no effort was made at this point to ascertain how much of any food was purchased or consumed or at what prices, It is very difficult to keep food in- store for long under local conditions, so it may be presumed that nearly all food purchased in a -84- given week is likely to be consumed immediately. The data gathered from these questions appear in Table 4-2, arranged in rows by food groups and in columns by city and average for the cities. As a bench- mark the average family and per capita income for the four cities is also noted in the relevant column. The consumer preference for, and reliance upon, the two starchy staples, yarn and cassava, are immediately eviderth/. To these basics are added palm oil, peppers, aromatic leaves and green vegetables. Some meat (beef or goat) or fish (usually dried) complete the daily 'chop'. Cassava is not a preferred food and is readily exchanged when incomes or alternatives permit. A new staple is rice, which has become widely popular although yet comparatively scarce. It has been suggested that eventually high yielding rice will replace the tubers as the basic carbohydrate. The relative percentiles regarding meats do not reflect preference 80 much as availability. Although the percentiles appear reasonably high, (53 percent reporting the purchase of beef last week) the quantities CODSumed per person are very small. This is equally true for fish. AS We shall see egg consumption per capita falls much below what the —‘ _3_/ Cassava is sold in root form, and resembles a very long potato. From Cassava a porridge-like food is processed called 'gari', Which is a daily staple. A101 lion-.o d .le - n u... I\I I ~ v .moflfio .30“ mo >o>usm HoEDmGoo a Eonm .3335»... 03» >3 vonQoHnH .9803 com .50on .muommoa mo ommuo>§w -85- AGOmmom 3305 3:33 o3» wcwndvv 3. S 3 mm m: mam... H38 «830 .o Z Z a 3 2 .835 mm mm om mm 2 seem mommuo>om .m was me we N3. um 33m #095. pm 9. em N5 3 3mm 3mouh 33h .v ow ma ow E 2 *mmzfimmg .m am we mm S cm mmmm ow em om 3 2 H8on0 mm 3m 00 ms 2 moom v3 0 om ON 0 xuom hm mm pm 3. 03 “moo . cwououmtmoz .N C. we mm so cm 03% me am oo 30 mm 88w mm .04 may «N mo .m>.mmm.m0 mm mm mm ow mm 3.30 mo3MHU>3o3nmU .3 m3 1m A: 4 .3 1m A: 1m «.3 d @8023 .mfimmo you owmno>< mcgmom 33¢ damask/«q 3.300 .33 3.3% @3330 $33M nm3m3m0 3m 4 SN 4 omm a «an 4 SN 4 $65 wooh moEO knob 033 cu“ :uw 33MB About 9303.: 3030353 wwmno>< Amman—coo you at $3003 .m bozo unwed um pooh 03» mESmGOU 033 5:0 30mm cw munoocommoMHO owmucoouonm mum>>o3mv moflflU 50h cm moammum pooh mo GOEQESmsoU mo sowmhmmEoD le 0~3mrfi ) -86.. the percentile suggests. The carbohydrates are, therefore, by weight, much the most important food in the diet in these four cities. The percentiles associated with eggs suggest that many pe0p1e in all cities (except Calabar) use eggs frequently. This rate of egg usage seems to move directly with household income. Being a cross-sectional survey, it is not possible from this study to see how this rate of consumption is affected by changes in price; but it is possible to see how it varies with income and between levels of education. A cross-sectional survey cannot give firm insights into the behavior of a group as its income varies (this requires study over time). If, however, we assume that the consuming group in Nigeria is homogeneous, and is differentiated mainly by distinctions in income, their comparative consumer behavior between income groups is suggestive (Table 4- 3). Four income groups were isolated and questions asked regarding last Week's consumer purchases. If we assume that the week meets the assumptions of random selection, and given our assumptions concerning perishability, then any week's purchases ought to be representative. It was found, for example, that 9 percent fewer purchases of caoSSava were reported by the middle income group (L 187 annually) than by the low income group (L 76 annually). Cassava purchases fall further by 16 percent between the mid and high income groups; which ..... .Iv\ I ‘ :- u I I I ll .-;v.v\)\l I. v. inn-v --0-\.‘ It .o-I-II-Io-unv 5 )---.--:.~-- \fcI-Q- oat-u. Inn-nyI~1A~.IVh "nhauncvhw - nu. utua....o...-..-.u .uo ‘.\....A.-v,- v v‘.u.va 0...... annuovVQ .v-u-.-I-~ .u-as I‘M-v _ .. . .. ..x , ...- . ... ......- ...,............,.... v u.. ....». a p . . . . I o v . . . . O . u _ . o . o . o o v . a r . D O A . ~ . o . .0033 3503 33 >0>Hdm 30850300 0 80¢ 3033.00 033 >3 p0u0m0nm .33533300 0333 0030350.“ :33 .0303 .833096 mo 00: 0wmusoos0 30333 30308335 303033.333 3333 30333500 >oc0pc0u 033» 3.033 33.0 603003 03.03.3093 03 8303300 03 @303 03033032 050033 H0333 303» 30093 03 33.0900 300 u: £90303 .005 mo Bay 033 300mm. 6030.03 330.83% .3033 33? 6033003300030 3033.03 0333 .wsmmwnmgoo asouw 03.3.5093 30 mo 003000.23 03» 303» 00300300 03 HH 033 .0308 3003 003 3033030 030 .38300 0.303 3.0 03m 03 6033033 03 0>03m 330 n00> 30m oow 1* .74» 033MB 33 30m030>0o 00 05.00 03» 0mm mmcasonm 08003 00038 * 3 + NN . S + om + msm0m S + 2 + w + a. - .8st 0m + om + mm + $3 + n00m 2 u 03 .. w + n .. 30$ Mooum _ S + n .. S + h + 303 300.33 070 m .. m .. 0w3030 OZ 0mcm30 oz 0033030w0> . 03» mo 0wmu0>< 2 + mm + mm + mm + .33. 3 + 3N + mm + w3 + 3030330 N3 + m + 03 + mm + m00m Z + 03 + N + m + 3.3% mm + 3 + wH + 2 + 3000 cm + 33 u m + 3m + 003m 3» + Hm I 33 + om + 80% 3m .. 3N . n: + o n 033000 vm .. MN I w + o u 3.30 08005 >ZEmh Had—33¢ +0232. .4 +oo>nom¢ 1* 02.:wa nu th :3. 1m 0w30m 03033 n0>O 0m3030 302 «m03wwm 0» 3wwm 33$ 03 0:032 0:032 03 304 0Q>B pooh 005030 08005.. 000330m 03030 03330030nm *3003 .0 0030 boom .0 0830300 >20305 >03» «03... wafiuommm man—0H0 £002,303 0G0 mahomounm G3 mmwcmfiU man—3.00:0“: emcmm 0800.5. 033 mmOHUAw owcmfiU awn mocm mwQMQDOHU ®EOUGH 9.003303 muw3d3 COUQESQnOU MO GOMMHMQEOU m Ev 033MB. . ‘3‘ -88- amounts to a 25 percent decline across all the studied groups (from low income persons to higher civil servants). A further decline of 26 percent is registered when the highest income group (above L 700) is included. Conversely, chicken purchases (a widely pOpular food) increased 18 percent between the low and middle income groups; 22 percent between mid to high and a further 21 percent to the highest income group; for a total 61 per cent increase from lowest to highest. Eggs scored the highest increase in purchases between income groups for all studied food foodstuffs; 73 percent across the whole range! In terms of quantity purchased; persons in the low income group purchased no more than three eggs at a time; the middle group about a half dozen and the upper group a dozen at a time. The highest group, including expatriates, bought eggs in dozens - usually two or three dozen at a time. Such persons usually have refrigerators in which to store them. 4;] Egg consumption appears to be very reSponsive to education. As the educational level rises, from none to some part of the basic six year SChool, food-use conforms to a similar pattern to income changes, but to a smaller degree. The movement between none and some education ‘ 2/ Davis initiated a considerable egg consumption promotion Campaign which stressed in print and by radio the better adult and child health, and growth potential possible through egg use. -89- is, in income terms, probably a movement within the lowest income groups - say from unskilled to semi- skilled. At this level, income is clearly the greatest restriction to any change in the nutritional pattern, regardless of the nutritional knowledge available to these persons. The use of eggs rises 43 percent over the entire range from uneducated to best educated, while the Spread between income extremes is 73 percent (Table 4-4). This great difference in reSponse elasti- cities is due to the use of eggs by 51 percent of the reSpondent in the lowest educational group but by only 14 percent in the lowest income group. In the highest income group, 87 percent report regular use of eggs whereas 94 percent of the best educated use them. It appears, therefore, that when the movements in the consumption of foodstuffs are compared across the whole range (lowest to highest income and education), the greatest pr0portionate changes occur among income categories. However, with the improvement in educational levels a better balanced diet emerges - carbohydrates decline in all groups, while the consumption of fresh fish and vegetables increases. It is important, from a policy standpoint, to decide which factor is the more influential in determining the direction of consumption Patterns of eggs - income or education? The evidence indicates that .0033 .303 a: >0>u50 H0Edmcoo .m 80.33 .8330 03» >3 U0nma0nnm -90- w a 2 .. 3 u N3 + 0000mm mm + 3m + 3 + w .. HOSEA m - ON - mm + owqfio oz 8.00 0N . ma n N .. o u . 303 308% o + v + 03 .. w u 303 3m0uh mH .. v .. 3 n m u 0033030m0> 033 no 0wmu0>< m¢ + 3N + N3 + 03 + wwwm 3 + Na. + N + $920 02 $3320. 2 + 0320 oz 2 + w + 030 «um + om + N. + m .. 3.8% S + o - o + a + $00 3 1 m3 . 3 + 33 + 003m wH I 3N .. 3 .. b + 5.0% 03. .. m n om u m3 .. 03,000.00 cm u mm . 3 + w u :00 2 05.03 0w0200 03 0:05 0mcmm 0>03< 30030m 03033 H0>O 0wdm30 302 van 0332 0:032 n 3 mu00> o n 0302 0Q>B pooh mmsouO 3.00030030m 3030030m C00330m 003953280 pooh G3 m0wcm30 033:0on0nm 3003 .m 0000 boom .0 0859300 >2msmd >033 mcflhoa0m 9.5.10 G00Bu0m noflnomounm cw 0mc030 033 $33003ch mason—U 12303.00de G00300m 033mm COSQESmcoU mo ComeMQEOU w. 1*» 03205 -91- egg consumption is more sensitive to changes in income than to changes in education - eSpecially from none to elementary education. For persons with the least formal learning education cannot, or does not, significantly influence their long-run eating habits. It should be noted, however, that the family members who are now making consumption decisions have been away from school for some time - perhaps a decade or more. Thus nutritional information presently being widely disseminated in schools may not now have much impact - but may in the next decade as the present generation of students reaches adulthood. This term lies beyond the planning period of the poultry project, so policy-makers' attention must focus on the present decision-makers. Consumers' habits appear to be very sensitive to increases in the level of education: to middle school and above. Income can be expected to rise for a household as its education level improves and it is reasonable to expect the two to move together. Both factors seem Operative but, the higher reSponse to increase in incomes suggests egg consumption is more limited by means, than by consumer resistance deriving from taste, nutritional ignorance, custom or taboo. For this reason short- term nutritional pr0paganda would seem to have only marginal effectiveness. -92- Such a view may be supported by the reasons given by respondents for not eating more eggs. Two questions were asked in this regard: (1) why do you not eat more eggs? (2) why do you think other people do not eat more eggs (Table 4-5 and 4- 6)? In both reSponse groups price emerges unequivocally as the limiting factor to greater egg consumption - regardless of present income or educational group. Only seven percent of reSpondents stated they were eating all the eggs they wanted, while 74 percent of all groups indicated they would eat more, price permitting. To bring the point more sharply into focus it should be recalled that typical egg prices range from 3/10 (. 53¢) to 4/6 (. 63¢) per dozen or 3. 8d. and 4. 6d. per egg reSpectively. It would appear that the potential egg consuming public remains largely untouched; ”potential" being a function of income. A great deal of folklore exists with regard to egg consumption, or the lack of it. It is said, for example, that the acquisition by a minor of a taste for eggs may cause him to become a thief. More positively, not a few persons relate that eggs are a food that can stimulate the mind prior to mental exercise - before an examination, for example. Finally, a widespread belief is said to exist with regard to the alleged powers of eggs as an aphrodesiac. Belief can have an important bearing stimulating 0f discouraging egg consumption. Respondents were queried in this regard (Table '4- 7). -93- .0 0330 .303 30 >0>Ho0 90850800 0 80.3 30380 03» >3 U0u0m0un3 N3 0... - m 0m 3260 3032 «>80 m 33 .. m >3 38030033 0800 HOV 30030m 03303032 m o .. u 3am 3303.393 0800 nov 5% 3:030:03m w w 3 N 2. 80300de 073 3 N3 u u N3. @0030 080003 300333 «N N - 0 E 0530 0883 3032 m 33 u N or @5030 080083 3.013 N3 n n 3 N3. 0030300 ON 03 .. m 3.3 dwdem .. «3 3 N mp 3.800003 3.30% N o 3 3 ow 030380 N. 03 .. 3 #3. 099080 3330a .3003 3003300000m :3 325 .803. 850 0:30:00 300 8:4 00:0 33¢ 30H \30300m 3073 HQ 00>. 003nm 803003300030 wwww 0no§$30fl 3073 .303 00.30 00000033 0wmm3 03033 30m 3073 303G >038 ©30m 0380380n300m >33 m IV 0330.3“. -94- .0 03330 000.3 .36 >0>H00 .8850000 0 80¢ H0500 0333 >n3 v0u0m0un3 .0>0£0£ 030000 00:30 30: 30 003300 .305 03 000000“ 533 00300330 0030 uc0>0300 05 30 00030300 0%. 3000.230.” 0033300930 05 305 300030033080 00 3030030 03 003.003.33.330 «0 >03 >m3 * m o o oo 300£0m 033032 0003343. m o N om 3:03.80 0800 HOV 300:0m 03300332 m N m mm 30033000 0800 .303 x3m 309030005 0 n 0 cm 0030000353 073 N N o ca 00000 080003 “00333.3 . . N3 N3. adono 080003 0330332 N. u N. ow QSOHO 08003: 3013 o u 3. 0w 000—0300 3‘ 3 3» cm smdnm w m m m3. 3.300.033 000nm .. N 0 mo 0:02.80 0 - 0 mm 00:20 :< W033ud0ou0q at 0.850 0003w330m\30300m Ho>03h 003nm v“.003..30033..n00030 0am 0850000 3073 00 0003330 .33 0mwm3 03313 0073 0Q 0.3930 3030w 03C03ucom00m >333 0:0 0300. ...... Inn-cv--A Ih-IIU V‘ >£>> -95- .0 0330 8.003 30 >0>880 80800800 0 8083 80580 05 >0. 30080808n3 m m a N3 mm om 300£0m 033030332 808» 08032 03 0 m3 33 03 3m 3803.808 0800 803 300£0m 033030332 N. 33 o w mN om 38038808 0800 803 83m 30800805 3 33 m o 33 Nm 80300839 073 u 03 .. N 31m 3am @8080 080083 800£w333 - 0 2 w 00 E. A06.2.0 0883 030082 c m 3N N3V N 3.3 @8080 080083 3013 u N. o mN N3 m3“. 8080300 n M3 m .. pm m3V 8m88m3 ON m 03 o w 0N 8.8008033 80% .. o3 .. 3 mN co 0800.380 0 S 0 0 cm S 00:30 :4 30033800800 83 5 30 HO >w 8083328380 3m 0838003.? 830nm 3333 83> 53003.3 80.303.300.030 80880800 05 83 3080m3 >033 0me >83 803.3. 80h 30000 08¢. 0wwm 300.03 08030800033 >55 0-0 030.3. —96— Importantly, 65 percent expressed the View that eggs can play a valuable role in personal nutrition, health, diet and well-being. Some 20 percent of the reSpondents in all groups indicated a belief in the benefits of eggs upon virility. The mental benefits attributed to eggs appear to enjoy a more limited vogue - only 9 percent subscribing to them. Very few persons Spontaneously mentioned the criminal implications of the egg eating habit - less than 2 percent. On the other hand, when pressed by a direct question, many acknowledged being aware of the belief but stated they did not personally accept it. One can conclude that the egg is widely accepted as a good, indeed superior, food. Considerable variation in reSponses appears to exist among cities. No reason for this is immediately evident; however, differentials in education, religious affiliation, intensity of nutrition pr0paganda, and Perhaps religion may account for some. The peculiar divergence notable in the Port Harcourt reSponses wherein health and vitamins appear the reVer se of the pattern noted elsewhere, is especially puzzling. Given the above casual variables influencing egg consumption; what are the levels of consumption actually attained? The rate of egg consumption in each household was obtained (Table 4-8). or these, 15 per cent of the households never use eggs; on the other hand 30 percent eat them at least once a week. The regional goal, in this context, seems remote indeed. The group which actually eats quantities of eggs cannot be viewed as the great potential market originally envisaged. -97- .003030 .503 30 >0>000 H0850000 0 50.33 .8500 05 >3 300u0a0un3 ee em 2 S em 3 S em 0:53 0 00:0 “0003 :3 S. S 3 me S. we 3 3 33mm - m 2 M: N e S 2 $00 $0 $32 Jfim0$~d00g0a :3 300£0m 300a30w 300:0m 300£0m 080003 080003 080003 0300300000033. 0003003300030 :33: £032 eeeeeeem oz :05 22 25.3 :33 0920.3. 003030 030.3 03 030393000033 300300000033 03 0030800000 mwm 30 0 . 00m wuw 0390.3. -98- A review of the data from the per Spective of the proportion of the public which currently eats an egg a week casts some light upon the success of the government in attaining their goals. Given the size of the typical household - say 15 persons - one and a half dozen eggs would have to be bought each week to feed pe0ple at the anticipated rate. What pr0por tion of regional urban households actually buy at this rate of 18 eggs per week? The following array of data is indicative (Table 4-9). Table 4- 9 Relationship Between Income and Egg Consumption Per Week Irlgcome Group Percent Typical Household Size Eggs Per Person/Week LOW 17 16 l. 1 Middle 44 13 1. 4 High 24 7 2. 6 \ Table 4- 10 Relationship Between Education and Egg Consumption Per Week Edufitional Group Percent Typical Household Size Eggs Per Per son/Week None 17 16 1 UP to standard 6 15 13 1 1Middle school 30 16 1 M°re than middle 69 16 1 \ichool The above tables were prepared by the author from a consumer survey in ¥four Citie s ’ > -99- Two points emerge. As income increases, consumers consume more eggs and as education increases more persons consume at least one egg. Thus higher income groups get more eggs per person while using them at a lower rate because of their smaller household size. The better educated make a greater effort to use eggs - hence the fact that 69 percent of the best educated eat a weekly egg — even with a substantial household to feed. The very high rate of use found in the top education group may be biased upward by the very extensive use of expatriates who swell the composition of the classification. In Port Harcourt, the city with the highest capita income, consumers appear to be best-off with regards to their egg intake (Table 4-11), while Enugu performs better than Onitsha, implying that the highest leve of education, and perhaps larger expatriate consuming group, affect the latter's somewhat higher average income level. These urban figures suggest that on the average, in these four cities, only 11 percent of the consuming public eats an egg a week. The figures also Show why Port Harcourt remains the best market for eggs, followed by Enugu. 4. Characteristics of Egg Consumers Consumers buy their eggs most often at local Open markets, though a significant departure from this pattern was noted in Onitsha (Table 4-12). 100 - .003030 .0003 30 >0>000 00800000 0 00003 000000 0030 >3 30000000n3 om pm m .. 0.03000030333 0.0003333 00 mm m . 300£0m 033030332 om om m3 m MSW 30003000um 03s 0N 03 w 0030003033 073 ww o3 .. N @0000 0000003 £w33l3 No 3V 3e. .. @0000 0000003 30333 on mm mm w 00000 0000003 3013 om mm mm m 000000033 unon3 3o om w M 00300 No om m 3 0m00m3 om >3 3m 03 0000300 0m 3.. 2 m 32:0 0< 300330000000 03 0300.3 0 50033 0 0030033300030 0000 00003 03‘ 0000 00003 033 >3000~3 hos/073 mmwwm >3m3 madmfidommvm 0Q 000.30 303.3 33.13» 0330.3... H— *— unl- nq-ortuu 0|... .nn!‘ v ‘ t.- 101- .003030 0003 30 >0>000 000000000 0 00003 000000 05 >0. 30000000n3 o 0 mm mm m3 00300003033 “00033.3 0 33 w om mm 30000m 033030332 0 3s 3s we N3 VA3m 30003000um m m b mo 30 0030000353 073 e 3e 3e 00 N3 @0000 0000003 033.3 mm 0N mm 03 30 00000 0000003 3032 m 33 co .. O3 @0000 00000003 3013 .. 3 303 me .. 00030300 33 03 0 mm 30 0w00m3 t 30 o 00 cm 0000000313 000n3 o m N0. 3.. m 0000300 3.. m m we 0 000000 33< 3003300000003 033 00000.3 0030033300030 0050 0000.03 0000mm 00005 30300 00030033 3000.3 00033033 3000.3 wmwwm >053 033300033 000030000300m3 00 00003.3 N 3 I¢ 0303.05 -102- The cold store (modern food store with cold chests) appears to have small impact yet with the representative consumer except in Onitsha, where they apparently are well established. The very great use made by the lower income group of cold stores seem suSpicious; but the high income groups also report very great use of the local market! Unfortunately the enumerators did not probe into this rather unexpected patter n. Ininerant hawkers play little role in egg distribution except in Port Harcourt, but small Nigerian-owned cold stores such as NIBO'S (Enugu) seem to be playing an increasing role in the retail segment. Home-produced eggs figures not at all in household diet. Indeed 95 percent of the households interviewed claimed not to possess home flocks. Consumers prefer to buy smaller rather than larger lots of eggs from their dealers. On the average nearly 40 percent buy less than a dozen at a time; a half dozen being the preferred lot). Only 12 percent bought in lots greater than a dozen. Some 14 percent either never bought eggs or were not sure what lots they usually purchased. Fully 37 percent had purchased a dozen last time while only 11 percent bought more than a dozen. Most groups studied followed this pattern of small lot purchases, a phenomenon in part explained by the lack of suitable household storage facilities for perishable eggs. -103- Meal times are the most p0pular times to consume eggs; some 71 percent of the reSpondents reporting this preference. A considerable number also eat them at “hotels" - or taverns. Eggs in all cases tend to be used either hard-boiled or as ingredients in other dishes. This practice seems to be a function of available cooking equipment. Frying pans are not widely used hence eggs must be cooked in pots, being boiled separately or added to the ubiquitious stew-type ch0p. Such cooking is normally performed over a wood fire on a hearth. During the annual Guinea fowl egg season a considerable body of consumers make use of the cheap ( 2 d. each or 2/- (. 28¢) a dozen) and tasty substitute (Table 4-13). In Onitsha, a town closely involved in trade coming from the north, 50 percent of the reSpondents have consumed these eggs. The claim is made that Guinea fowl eggs contribute powerfully to marketing problems of chicken eggs during the wet season months. Yet on the average 32 percent of the reSpondents eat Guinea fowl eggs during the year, lower than might be expected given their very low price. The above figures suggest that the effect in general is not so serious as One might believe outside of Onitsha. One important question, however, emerges fr om the marketing of Guinea fowl eggs. Once their price falls to about 2/- (. 28¢) a dozen their market appears to widen immensely. This may be a straw-in-the- Wind as to the levels which commercial eggs need fall if they are to become an important item in urban diets. 104 - .003030 0003 30 00.0000 000000000 0 0000.3 0000.00 0030 .3 30000000n3 w3 33V mm mm om 0N mm om om 3N mm mm 00% mp om we be 00 3. mm. we 03s on 2. we 073 30033000000%0S 0000333 033030333 03m 00073 033.3 033030333 3013 «00000033 00300300 0m00mt3 0030300 000000 0wwm 0030003033 00000003 000n3 3333 33003 000300 0033 0mmm 33003 000300 30 0030030000000 m 3 .0 03030.3. -105- ReSpondents appeared very undecided and unclear when asked to give their own criteria for a good egg. A large number (44 percent) reported that the egg they were presently using was quite satisfactory. Some (11 percent) indicated a preference for a white shell egg, whereas only 12 percent mentioned a preference for the brown. Any egg not obviously fertile or rotten was good enough for 11 percent. No clear consensus existed among 90 percent of the reSpondents with regard to what constituted a good egg. For the 10 percent who did have views, consumers appear to favor a fresh egg with a very yellow yolk in a white shell. A very large role can still be played in this regard by the image- makers. 5. Summar y The consumer survey conducted in four cities of Eastern Nigeria in December 1966 provides sufficient information on the consumer and consumption habits to allow certain generalizations to be made. The rate and level of egg consumption seems positively related to household income and levels of education. Income is a function of education to some considerable, but unSpecified degree. In Eastern Nigeria many persons of quite humble formal education have nonetheless achieved considerable income, for example, in trade and tranSport. However, the evidence suggests that the family with higher education will be more likely to buy a more nutritious diet than the less well educated 1"- (l) -lOb- even though the former may have a somewhat superior income. Pe0ple with higher educations, and a given income will buy more eggs than less educated people with the same income. Several indications of the level of egg consumption presently attained have emerged from the survey. i. Nineteen percent of the reSpondents sampled eat at least an egg a week. ii. Five percent said they never ate eggs. iii. Sixty-five percent occasionally eat eggs. iv. Only eight percent eat all the eggs they want. v. Seventy-four percent said they personally would use more eggs if the prices fall. vi. Two percent said they rejected eggs as a food. vii. Ten percent did not eat eggs for unSpecified social reasons. viii. Ninety- three percent felt eggs were beneficial as a food. These indicators strongly suggest that eggs are an acceptable, even superior food. The most serious barrier to greater use in price, given the level of income in urban Eastern Nigeria. Though egg prices have fallen 50 percent since 1961, this decline has mainly affected the higher income and best educated. The vast bulk of the urban public remains largely beyond the reach of the egg producer, because prices are more -lO7- than incomes can bear. Clearly as egg prices fall the quantity demanded will increase; but to reach the broad market desired (and the objective set by government namely one egg per person per week) will require a very substantial price reduction. -108- CHAPTER 5 fIfHE COMMERCIAL POULTR YMAN - A STUDY OF ENTREPRENEURSHIP ”There are always and everywhere potential surpluses available. What counts is the institutional means of bringing them to life. . . and for calling forth the Special effort, setting aside the extra amount, devising the surplus". L/ 1. Introduction Before turning to a detailed analysis of the commercial poultryman as a manager and decision-maker it will be useful to consider him in his wider context as an entrepreneur. Such an evaluation will give new insight into the farmer; adding a better understanding of the farmer's own View of his problems and in this way obtain some feeling whether poor management is due to other considerations than economic Opti- mization (which perhaps are of equal importance to him), perverse economic behavior, poor business training, poor information - or some combination among these. Such information can have an important role to play when designing policy guidelines. :7 Polanyi, K.; editor; Trade and Markets in the Early Empires, Macmillan, 1957, Page 339. E/ Entrepreneurship is defined as the skill, desire and ability to enter a business. Management, on the other hand, has to do with the operation of the firm once the investment has been made by the entrepreneur. :3 .a .Pv 7.: v pf. "U :16 -109- This chapter will bring together a number of different characteristics associated with, or attributed t3, pvultry entrepreneurs to produce a general statement about them. In addition, some attempt will be made to account for the variable successes these entrepreneurs have had in the poultry business and to relate these to their essential entrepreneurial characteristics. The material introduced below was gathered in a cross- 3/ sectional survey of 100 producer—s. 2. Planned Role of Entrepreneurship The indigenous entrepreneur has played an important role in the growth of the commercial egg industry. At present, private persons own and operate virtually all the producing firms in Eastern Nigeria. The regional government has relied upon the motive of personal gain whetted by public promotion of the industry and the subsidized provision of inputs, to attract new producers. The government assumed that it need only provide the proper incentives and business climate to Spur and nurture the new business to maturity. There were excellent grounds for supporting this optimistic view regarding popular reSponse to public initiative. 2/ The details of the methodology used to gather the information used in this section may be found in the appendix. In Chapter 6, costs of production will be presented for the representative farm - being the average cost of production from those studied in a five month record keeping study - and for the best one-third of producers. The above section is intended to give the reader a picture of the producer associated with the firm examined in the following unit. -110- The dominant ethnic groups. of Eastern Nigeria, the Ibo and Ibibio, are opportunity-oriented. Although much of their activity is of the zero-sum sort (exchange rather than productive activities), Easterners are, as a group, remarkably open to new ways of earning money and, in fact, derive prestige and status from business success. Kilby reports, that Easterners have been forced to seek productive occupations y unconnected with land because of the great pressure on the land. Further, he says, Ibo social structure permits, indeed stressed, alternative choices and goals, individual initiative and recognition of achievement. Such social and economic factors explain, in part, the considerable response to public incentives to enter the commercial egg industry. It does not, however, explain why many of these producers operate unprofitable farms. Such inefficiency in the egg productim segment of the poultry industry appears to be inversely related to the quality of management and has two important implications. First, it adversely affects the rate of capital formation. Second, it may affect the formation of an entrepreneurial class. Business failure deriving from poor performance may deter these persons, and others, from entering positive-sum ventures in the future. The apparent poor quality of much of the management observed on poultry farms is relevant to the development of a Nigerian entrepreneurial 4/ Kilby, P. , African Enterprise: The Nigerian Bread Industry, — Stanford University, Hoover Institute, 1965, Chapter 8. class. in many entrepr exoerie answer 3. Por entrep: p) :3 L L b—4 r0 be Syn: and the (Which -111- class. Entrepreneurship and management loom as critical bottlenecks in many deve10pment schemes in Nigeria. Little empirical research on entrepreneurship has been done in Nigeria, but the poultry industry's experience may be of significance in identifying some of the questions, answers, issues and problems. 3. Portrait of Two Poultgmen To obtain pertinent information regarding the character of poultry entrepreneurs, interviews were conducted with 100 active poultrymen and 12 former ones. From this study, two composite poultrymen can be synthesized. One represents the modal (or representative) poultryman, and the other those producers who fall into the best-one-third category (which will be developed in Chapter 6). The modal poultryman is about 37 years of age and lives at his farm site much of the time. His family is either from Onitsha or Owerri Province. He has eight years of school; making him one of the better educated members of the community. He is a functional literate, and can Speak quite acceptable English. Prior to entering the poultry industry, in 1962, he had been a skilled worker (although he might equally have been a junior civil servant or artisan). He reads a neWSpaper and has a radio. His house is of cement block, with a metal roof. Indeed, his compound has many of the trappings associated with a reasonably successful person. His children are in school. He -112- takes great pride in talking of his future plans with regard to his most promising son’s education - college - perhaps overseas. He drifted into poultry mainly to supplement his income but also to make use of considerable personal savings. He has had a long- standing interest in poultry rearing as a hobby. In 1962, he heard of the government's commercial egg scheme from Several sources; but he relied most of all on information from his family and friends. He may have heard Davis Speak and, if he lives in Abakaliki Province, likely knew Davis personally. Having learned about the investment possibilities in poultry, he waited nine months to make the final decision to enter production. He relied primarily upon personal savings supplemented by some family money to obtain the initial capital. The family farm became the site Of his poultry Operation. He knew little factually about poultry husbandry and did not personally bother to attend one Of the several training programs Open to him, but he did hire a 'manager' whom he Sent to such a program. He has never attended a poultry conference and has rarely been in contact with his extension worker, whose name he does not know. Once in business, lack of money to meet current Operating expenses became a persistent problem. He had already invested most Of his liquid assets in his poultry house, the plans for which he obtained from the government. His present fixed assets in housing, equipment and two - 113- mature laying flocks (MOA-RIR) of 200 layers each; is nearly L 500 ($14%(/)). He has already experienced feed shortages, occasionally a scarcity of chicks, and sometimes has had difficulty obtaining veterinary assistance when needed. A reliable market for his eggs has remained elusive. His knowledge of business management is somewhat more rudimentary than that of husbandry. He has little understanding of costs other than as out-of-pocket expenses. A grossly exaggerated notion Of the longevity of his poultry house blurs his very unclear ideas regarding fixed costs and depreciation. He is aware that costs and incomes exist as separate but related entitites, but tends to think of them as a single point in time rather than as a process. He clearly understands that revenue minus cost is profit. But he tends to see profit as money in the pocket rather than as a residual after several cost deductions. Part of his problem stems from little knowledge of book-keeping. He keeps records. But these are in reality lists of numbers: number of hens, chicks and mortality, bags of feed bought, revenue from eggs sold. However, these figures are kept as aggregate for all flocks and he has, consequently, little notion of the flock as a productive enterprise having a separate entity distinct from other flocks. Not 2/ This is $1. 75 per hen housed. As one flock ages, he will bring in a grower flock so that for lO-15 weeks he will have three flocks on litter, but only two producing eggs. -114- keeping records on a per-flock basis, he cannot begin to maintain meaningful guides to decision-making. At present he gets very little income from the business although he looks upon it as his “most important activity” - a function no doubt of the size Of his investment in it. His staff is not as reliable as he would like but he does not really know how to get more out of them. He presently hires two men and uses one or two additional family members. His ability as a supervisor is limited both by his lack of knowledge about husbandry, and his ignorance of actual flock performance. Hence, he uses hit or miss methods. He keeps old or non-productive flocks too long. He buys cheaper breeds rather than quality stock. He provides adequate feed (and in fact sometimes in wasteful excess) but he often fails to see that troughs are properly filled, drinkers full and feeders upright. Since the marketing scheme began, he has been less concerned about outlets for his eggs, but he is still worried whether the scheme will do all its promoters say it will. He would like the scheme to buy all his culls and eggs. He would like cheaper feeds. He does not much care about egg consumption programs or an improved extension service. He has mixed feelings about the business and feels it has been a financial disappointment, however, he intends to stay in it. someu'h six cert lmporta or cloth eventual to start records CORSldel in husba in an ind He and “i105 entered ( he gains to £1009 has agar). lS mmjng HIS Chicks -115- The owner included with the most efficient third, differs more in degree than in kind from his more typical colleague. He is likely to be slightly Older, lives at his farm site, has ambitious for his children, and possesses a certain level Of material well-being. He has, however, somewhat less formal schooling and probably does not have a standard six certificate; nonetheless, he can read and understand English. Importantly, he has been either the owner of a business, or a shoe or cloth merchant. He was apprenticed to his trade at an early age and eventually received an endowment from his master which allowed him to start a similar business Of his own. He learned to keep business records. He was a success in this business, and was able to lay aside considerable savings from it. He likely has had long-standing interest in husbandry, and when he learned of the introoduction of a commercial egg industry, he felt that this was an Opportunity to invest his savings in an industry Of some interest to him. He learned Of the industry from persons whose views he reSpected and whose judgement he trusted, rather than from public media. He entered commercial poultry in 1962 using personal savings. At present he gains about half of his income from poultry and owns assets of up to L 1000 ($2800). Poultry production is his most important work. He has nearly 1500 hens plus some 500 chicks. He has used MOA-RIR but is moving to hybrids. He has already had WL or Thornber 404 hybrids. His chicks are all hybrid. -ll6- He learned poultry husbandry from a training course taken at one of the government stations, but he also hires a trained manager. He uses a slightly larger than average staff, but supervises them better. He uses the extension service; eSpecially if he lives near Abakaliki. He does not keep per flock records but has expressed interest in them. His knowledge of costs are not much better developed than the typical poultryman; but he keeps close tabs on waste, and purchases egg Specialist breeds which have to some extent Offset his lack of close control. He is better located than the average poultr yman, typically near an urban area through not necessarily a large consuming market. He uses family land for his farm. He is worried about the future of the industry. He would like to see marketing improvements and stable egg prices. But on the average he feels that he will be able to survive. He is glad he entered poultry and plans to remain. However, he has made some investments in other enterprises, and may keep a finger in his old business. Two major distinctions appear between the two groups of poultrymen: education and previous experience. These are really one, however, if a man is regarded as the sum of his experience (including formal and informal, or experimental, education). The average poultryman tends to have more of the formal whereas the superior has had more practical experience in trade, having foregone several years of schooling. -ll7- The relatively superior performance of the less well-educated group calls for some explanation. It is postulated that a rather neutral relationship exists between formal education and business success. The better businessmen are traders who typically have lower educational levels. Those with higher education are typically professional or civil servants with little practical business experience. Perhaps entrepreneurship as an art - form is not greatly affected by education but can be honed by seven to eight years trading experience. Moreover, the type Of education Offered in Eastern Nigeria does not seem to prepare one for business activity. 4. Characteristics of Poultrymen Let us turn to a more detailed examination of the distribution Of the responses to the questions from which the two composite poultrymen have been evolved. The average age of poultrymen interviewed was 37, with as many thirty and under as over forty (Table 5-1). The commercial egg prOgram was introduced in 1961-62 and most of the poultrymen reported (Table 5-2)entering the business Since that date, eSpecially in 1963. But a surprising 21 percent claimed to have had poultry enterprises prior to this time - some since 1946. The presence of this group before the formal advent of the program .0003 $30.3...0003. .00000003 003 30 >0>000 000 0000.0 0003000 0030 .30, 3003300000 . mm @0000 . 0 m 0 00 00 cm 0 on... :0 000300073 on sea. e.82 3-3 3-3 3-0. 3.0.. 8-3 on snfi $3 00.0 0300373 000000333 30 00000.3 353 00 0000.3 00300n3 30033000m 3o 00w< 30 00300n30003n3 3 um 03030.3. .0003 .>30h|000.3. .0008003 353 .30 >0>000 000 000003 0003000 0030 >03 30033000000 m m 3303 00 003003 N. N wmo3 w 3 mmo3 03 w 0003 3N . m 3003 mm N4 3N N003 1.. ow mm mom; cm 03 0003 003 3‘3 memo; 0300300000 000000003 000.». 005 m030000m 3000.3. 30 0.0000003 >000H 30 000% 0000M. 30000030m 03 0300003003 000 m0300u0m 00E>0u300n3 30 003000030003 N ..m 0330.3. -120- testifies to the autonomous existence of conditions in which the industry could grow, and the willingness of Easterners to invest even before government led the way. These poultrymen were the receipients of the improved RIR distributed from various government stations over the 1950's, plus an unknown number of private imported birds. Similarly, their success in establishing production no doubt encouraged the MOA to push ahead with the project. The surge after 1961 testifies to the Sharp upturn in interest registered after Davis and the MOA stepped up promotional activities and interested entrepreneurs in the possibilities Open to them in commercial egg production. The rate of entry begins to decline sharply, after 1963. This close correlation between new entry and the success of the industry is testimony of the degree of senstivity to the market felt by would-be Eastern entrepreneurs. Poultr ymen report a variety of reasons for entering the industry, and expressed their most important and second most important reason for starting a poultry farm (Table 5-3). The chance to earn extra money appears to be the most important factor inducing participation. Yet, many peOple seem to have selected poultry for reasons not altogether economic; mainly familiarity with, or an interest in, poultry husbandry. Prestige may have been a factor too. .0003 .>303.n0003. .00000003 003 30 >0>000 0030 0000.3 0003000 00.30 >0. 3003300000 o .003 o .003 3000.3. w .3 o .3 0300000030 >00 003 30003 30030013 w .3 o .3 03003 3000300000 000E000>0m 30 000000@ b .m 30 .N 003000000000 000003 003 0ww0 0303>00n3 m .> w .3s 00000030000 003000n3 . o .m N .> 300>o3n38000 0033000300 m l 0 .3 N .0 .3000 . 3. .m N .w 03003 00030000303003 m ON 30 .3N 33000000300 000000000003 30000 m .33 m 03.. 0000030000 00000003 3000003 @00000mw 0030030 003000 00.30 0000033 Ucoomm m< umhwrm macs 000000003 02 >03 000,30 0030003000003 mwm 303000000000 N030000m3 003 000000~3 m um 03030.3. -122- To determine the consistency and reliability of answers to sensitive questions, reSpondents were asked the following questions: (1) What proportion of your total income accrues at present from your poultry enterprise, and (2) Yes or No - do you consider poultry to be your most important source of income? About 60 percent of respondents reported that their poultry enterprise at present is their most important source of income. The distribution of responses appear in Table 5-4 and 5-5.. The array of data on Table 5-5 was subjected to chi-square analysis to ascertain if reSpondents had in fact been consistent in their answers. The test yielded a computed value for chi-square so high (. 005) that a hypothesis presuming a non-relationship between the variables must be rejected and the inference made that the proportion of income received by entrepreneurs from their poultry firms is highly related to their commitment to the industry as their primary source of livelihood. The seeming consistency of reSponses to such sensitive questions would appear to auger well for the reliability of reSponses in general. Table 5-4 and 5-5 indicates, however, that poultry provides the "major" source of their livelihood for only a few families and that only nineteen percent receive three-quarters of more of their total cash incomes from their flocks. About half of the respondents received little or no income from their poultry flocks. To gain some insight .ooo3 $35hnoc53. .mnoEHmm 003 30 >o>usm on» 80.3 .8538 05 >3 35313800 om om ocoZ umoE3< on om 3&3 ow o3 N\3 _ mm m «km 3 2 _ 2: N3 323082 o>3um35650 “coonom co3uuoaoum m3» mc3cumm “coouom oEOUGH 3muoH mo cofluomonm mom3nmn3cm3 mmm 33.38800 .59: Scam «835333593 03 3 wc3suoo< mEOUGH 3.30.3. 30 cofluoaoum 3q um oEMH .0003 .>30huo0sh. £020.53 9: 30 0300730 000 00003 000000 00» >0 300339000 _ 2: mm mm o w 2 038. 4 2 _ am am 2 m - .. 2.8.3 3.3.8000 $032 H00.» 000 3 00 mm as o w 00 003.33 0.003 .8903 $032 .393 200 03 @0000 0000 03 00030000000 00 $0052 080.3. 282 $082 30 N: 34m 33< 30003.4. mm003m0m >5300m wwwm 30 03mm 8003 00.00003 30 0o3unomounm 00 “0 050300800 03 80 0.3 mgr/3.80 080003 3.30“ H305 mo 0ofiuomonn3 05 300.0 03.83 003000003 $032 0300» 300 m3 gov m3 >Hu300n3 05 000”. 3003 003 m00m00n3 0002500 0300003003053 00.3. m ...m 030.08 -125- into this matter, the vocational groups into which each class falls were examined. ReSpondents were asked: what other forms of livelihood do you at presently engage in? Table 5-6 shows that twenty—three percent of the farmers interviewed have no alternative work to their poultry; 10 percent being persons who consider themselves primarily as poultrymen. Who are these pe0ple who claim poultry as their most important business, yet, receive virtually no income from it? These reSpondents seem to fall into three groups. The first group possessed, at the time of the interview, only grower flocks from whom no income was currently being derived. In the respondents mind (and in fact) poultry was likely the main line of work even if little or no income was currently being realized from it. Clearly, once production began and followed its normal course, the reSpondents' earnings would increase. The second group was composed exclusively of businessmen; traders, contractors, etc. These reSpondents may have been reluctant to admit for one reason or another, the relative importance of their activities. But this group represented a small (8 percent) pr0portion of the total sample. A final group may have arisen on semantic grounds owing to difficulties arising in translation (or concept) between enumerator and .0003 .>30hu000h 00000003 003 30 >0>00m 000 800m 000000 000 >0 3003000000 .0wmp000000 00 3000000me \Im: .00000000 300 mm 30000000xm \M . 2: mm m N o S 3 mm $80. 6 \N 2 _ o... v 0 N s o S 0 mz \3 30 03 m .. m 03 0 3m W0.” \ 0 300000 0003.00 .0500 .00000& 003000H. 0000000m 0000008 000000003. 003000000 3000.3. [000330. 00Efl0030on3 .00 0003000000 0>00000003< 0000000003 00033 073 000> >0030on3 03 0030000000 0000000003 00000 00000 00 >030on3 003000000 000 330 00 30330 003 000000003 000250m 00300000000 w00300m “008$ 0.030on3 300030000 >0 30300 0300300000000 No 000>H e um 03008 -lZ7- reSpondent. For example, the word 'important' may have been an unhappy choice to describe the enterprise producing the reSpondent's most significant source of income. Although this eventuality was foreseen, and enumerators coached on the intent of the question, some ambiguity may have lingered and the concept blurred when it finally reached the reSpondent. Thus the word 'important' may have taken on a meaning of significance in non-money terms. Given the great publicity surrounding the project, some reSpondents may have seen poultry in status terms, transcending a simple source of income. Four respondents gave 'pension supplement' as an incentive to enter poultry. For such persons, poultry could take on the trappings of hobby or present most important work. Poultrymen have brought to the industry with them a wuite wide range of vocational experiences and trade and commercial experiences have played a large role in fashioning future poultry entrepreneurs (Table 5-7). ReSpondents were asked about the number of vocational experiences in their working lives (Table 5-8) and a broad range appear; commerce, teaching, skilled labor, clerks, artisans and government workers. Clearly poultry entrepreneurs are not drawn from true farmers or a purely rural population or from any other group, exclusively. Some 55 percent appear to be associated with essentially urban activities. It is .0003 .>30hu000h 0000003 003 mo >0>000 000 00003 000000 000 >0 0030800 0230000 m0>€pu0m000 N 003030300 3 "00000 "Us... .30m03 00 30000000 630030 * 0.: m m mm N 2 0m N N 3 0080. 0 .. - 0 0 - 0 m - 0 95 _ om - 0 n m N o w 0 m £0980 0%. 1 3 0 - o m N 0 N 0 0 288000 0.80 _ 0N .. - o N 0 m o - m 2.830 mm N 0 m n 0 o N - m 00305 2 - 0 w m N v w 0 - 5080 v u .. 3 .. .. .. N .. 3 m0000 < N - - m N m 0 m - 0 0008030 300330030 .090 *300000 30008 080.0050 .033 3003335 .0300 nm30m 000008 0000008 100.00 0mm 000000.03 0000>00n3 0000>00n3 >0 30000000m . .00E>0030on3 30 300000m000m 300000003, .00 00300000000 N. um 0300.8 .0003 .>30.3...000h 000803 003 no >0>00m 000 800w 000000 000 >0 30030000000 003 003 30008 mo . 3 00330m00>m3 mo . 3 00003330n3 3 N 03300003 3 N 30000000000n3 . N m 00003 3003300003 01 n 0 2 0.980an -000 _ 03 03 00000003 0 3 MN 000000 0950 03 0N 0000008 3N 30m 0030008 0N mm 0003003 3.00330v3m 0000. 30008 no 000000m 0000000~3 0000. 00 00000073 0owp0oo> 00E>0030on3 003 00 00313 w00v300>> 000 00>O 000000000xm 30003000002 m ..m 03008 likely they are now 1; Such pers and most remainin; in commie crowing vocations on the la Opportun Th 0 -l30— likely they are first generation city dwellers who have saved money and are now using it on the family farm to supplement urban-based incomes. Such persons would also be those most knowledgeable about new activities and most familiar with the ways to learn about new opportunities. The remaining 45 percent live permanently at farm sites, but often engage in commercial farm activities; pineapple, palm oil, rubber or cash cr0pping of staples. Only 10 percent of the sample have had no off-farm vocational experience; indicating that most of the 45 percent presently on the land also have learned to look to urban areas for economic Opportunity and have worked in non-farm activities. The figures in Table 5-8 represent all the 160 jobs of which the 100 reSpondents have held at some time in their lives. The largest group skilled workers - embraces clerks, seamstresses, tailors, bba'cksmiths, drivers, overseer s, carpenters and so on. The government classification includes jobs on the public payroll, such as school administrators, police, produce inspectors, bureaucrats and the like. The self-employed group counts contractors and motor vehicle owners. In addition to the 160 jobs reported by the 100 reSpondents, only six prolonged periods of unemployment were reported. Persons involved in business activities such as trade, self-employed businessmen and the professions (a lawyer and a doctor) represently nearly 30 percent of the total job experiences. This would seem to be the best -l3l- educated group so far as entrepreneurship is concerned, since their work required them to become familiar with at least rudimentary concepts of book-keeping and business practices in general (Table 5-9). When a chi-square test is applied to poultrymen who keep records on a per flock basis, a high degree of relationship was found to exist (13. 42) between keeping proper records and vocational experience. The implication is that potential quality of management ought to be related to the type of vocational experiences entrepreneurs have had. When levels of education achieved by poultry entrepreneurs are added to the range of skills represented in the industry it becomes evident that the poultry industry includes a considerably above-average group of people for Eastern Nigeria. Poultrymen have an average of eight years of school. Four reSpondents had no education and only 15 failed to reach the level of elementary six. About 45 have had some middle school. Five poultrymen have attended college; three of whom completed their degrees (Table 5-10). Few poultrymen come from vocational backgrounds that require little or no education, a point brought out by the presence of only three unskilled workers in the group. Even farmers, a normally less-educated group, had attained surprising levels of schooling. Over half of. the persons classified as farmers at the time of interview had finished eight .0003 .>30h..000.3. 00000000 003 mo >0>00m 000 5000 000000 000 >0 30030000000 0w00000000 m0 3000000n3xm3 \IN: 00000000 300 00 3000000me \I3 7.. 2: N 0. m ON eN H080. n \N 3 3 0 FN N 2 0N 0.0.4 3 mm m E 0 e m We» 3 HMHOH. Hmfiuo HOUNHH. fidGmeWOHOHm “COECmerOO HMSUNOH. «wmmwhmhmuam 0000040030onm mo 300000wv300m3 30003000> 0000 00%003 0002 300m 0003mu00m 0 0o 000000m M00000V3 0000>00300n3 mo 300000mv300m3 30003000> 0.0 03008 00o> 000 03000000 00000000 00003 00> 0Q 133 - .0003” axnfidhlmflfih .mHGEHNH OOH HO >®>H5m 0H: EOHH 803.3806 03.: >9 UOHHQEOU 003 0 N3 0000 00032 mo m3 N3 ow m 33 up o 03 00 v o 00 mm 0 ON 03 N. 03 w 0 m3 m 0 N3 0 v w m m m 3 N w o 3 3e 3V 0 0300300000 00000 000m 03 000000n3 3000080 003000030333 00 30>013 000000000000m >0030om E: 00 030000093033 3000300030333 03 um 0300.8 -l34- years of school (16 of the 28). Four had completed twelve years of 9/ formal education. ReSpondents were asked about the manner in which they had first learned of commercial poultry. They were asked to give the first and second most important source of information (Table 5-11). ReSpondents rely primarily upon known and trusted persons as sources of information (48 percent). Even those who rely primarily upon some other source of primary information - radio, personal witness, neWSpapers, or in school - sought corroboration by friends and family. Personal observation at other farms, the regional poultry center or at schools accounts for nearly 20 percent of primary information. The MOA either through the extension service or through the information service provided for another 18 percent. Radio, available in many homes, plays a modest role as a source of primary information. However, once the reSpondents were alerted to the possibilities of an investment in poultry by a valued personal source, the public media - radio and neWSpaper - seems to play a strong supporting, and possibly decisive, role in supporting an idea received from a normally reSpected source. _Q/ The distribution of education among 28 full-time farmers who were also poultrymen are: one, no school; four, standard six or less; sixteen, eight years; six more than eight years. None had attended college. The poorest educational groups are in Abakaliki Province, the highest in Onitsha. .32 53.83 6880.0 2: 00 3:3 90 80.0 .8005 20 .3 30.0800 003 o .003 30008 0 o .3 00300m v o .N 0000000 0 00 300000 3w 3 o .m 8000 >003000 0 0o 00 3000 o o .m 000003 >0030on3 30000w0m 3000003? 0 o .0 003000 0030000000 0000b E. wN 3.0 00000003073 _ 0N N .w 3003:... 000:0. 3N o .03 00000.0 000300 00>00m00 s m .N3 000000000000 <02 80 0h e e .2. 908.0 0.00380 3520 90000000 3000003 0000 000003 00033 300000m 0000 000003 00033 0000om 0000000m >00300nm 00» mo w03000013 00 00000> 00300n3 >0 30000 003000000003 00 00 000m :-m 280w -l36- Having once learned of the poultry business, poultr ymen entered into it at varying lags in time. One-third of the reSpondents waited more than a year before actually entering the business. A second third acted within six months of first learning about the possibilities in commercial poultry. This reSponse lag is shown in Table 5-12. Clearly the most important barrier to entry into the poultry business is lack of money (Table 5-13). The timing of entry into the business also determined to some extent the type of difficulties encountered. Thus a person entering during the maize shortage of 1966 would likely have seen the lack of ration as a most serious entry problem. A person entering in 1963-64 would have experienced great difficulty obtaining chicks. In the early years (or even recently in the remoter areas) anxiety about the availability of veterinary services might have been a barrier. The lack of market outlets and experiences in the business appears to be a perennial problem. Of all inputs, land clearly emerges as the least important limitation to entry. What may be a limiting factor, but does not appear, is the problem of obtaining land where the poultr yman wants it, as Opposed to where he can. The remarkably unsuitable location of some sites with reSpect of feed sources and/or market outlets may derive in part from such difficulties. ReSpondents were asked about the sources of finance for their poultry enterprise; two answers were solicited - most important and second most .0003 .>303....000h 6000003 003 .«o >0>00m 000 800m 000000 000 >0 3003000000 0 .003 0 .mm 000> 0 0000 00033 0 .80 0 .3N 0m0> 000 ”41.0 0 .2» m .30. 0000000 00073 1.. m .0m 0 .03 0000000 03m 0 .mN 0 .N3 0000000 00008 0.33 m.33 00000030 3000003 3000003 000000300000 00000 000mm 0m 000000nm >0000003 000 03 0000000000000 000 .00 m0000003 000$ 00um< 0100003003 000 00 0030800003 000$ 00000.0 w013 00008 00000000050803 >5300n3 003 >0 0000000m w013 >000m3 N3 ..m 03008 138 - .0003 .>30Hu000h 6000003 003 .00 >0>000 000 00000 000000 00» >0 3003000000 0.003 w.m3 m .NN m.0 N .0m v.0 mK 0.003 ¢.N3 0.03 01:. 30008 00000 0000 000 30003 m00300 000300 no 030013 0300 0300000000.... mo V3001... 00300000000 00030000 00 00013 3000.0 00 030013 00000000000 00 00013 > 00000 00 030013 0000 000003 00033 00oo0m 0000 000003 0 0 032 0 0000300 0n3 003 >0 >000nm mo 0000300003 0000000~3 30000000m 0000000m >530on3 000 0000 >000m mo 00003000n3 m 3 um 0300.8 -139- (Table 5-14). Personal savings, supplemented by a loan, emerges as the typical source of entry funds. The high equity demands by FAID, and the very few alternative sources of loans, make loans a poor first source of money. Family funds are equal in importance to direct loans. Those persons who had obtained loans were asked about the source of the loans (Table 5-15). Banks appear to be a poor source of loans, as few can meet the equity or other requirements; thus government 7 institutions must bear the burd-e-r/l. Loans from formal institutions, of all types, represent half of the loans reported. Some 39 percent of the reSpondents reported having difficulty in obtaining a loan. Difficulties reported in descending order of frequency were: (1) could not meet minimum requirements; (2) did not get COOperation from officials (from the reSpondents' point of View! ); (3) lack of personal influence. Even so, 37. 5 percent of the loans granted, come from the government. Two avenues are Open for poultrymen to prepare themselves as owner- Operators of their poultry farms: either train themselves or prepare a manager in their stead (Table 5-16 and 5-17). In fact only 28 percent of the owners have taken training at Abakaliki, or elsewhere. Although 28 percent is a disappointingly low level of owner—training, it must be remembers that it may be offset, to some extent, by practical business fl Enumerators on several occasions reported that poultrymen had erected over-lar ge poultry houses to act as equity for loans which were not necessarily used for the poultry enterprise. .002 Sadhuossh 6.85.30 00H 00 >o>udm of 803 .8525 one >9 0030800 0 .00a 0 .00a H.308 n .m u mpsofluh n N .N 3300m o>flwnmmoou Eonrm _ n .m N .N Acofimzoa wswvgost oEousw HNCOmuonH O u M. u H .m $85qu Eonh _ 0 .mm M .m Good w .3 a .2 Egg w .3 o .3 $8.33 Aucoouomfl 0:80.53 3.3.89»; umoz wcooom HGSHOQEH $02 oocmcwh mo monsom >bw5bcH >nfidonm o5 nouam ou womb momwnauousm 00H new oocmcwh mo moousom a: um MHQMH .02; $37.05;. .mnoccnmm 00H 00 choc/.25 of Son.“ nosusm of >3 6310800 0 .00a $8.08 m .N. >28mh 1”. m .NH sabowoom o>3muomoou 4 1.. 0 .mH xcmm m .0m mvsownh m .hm >osow< 3095.85.00 35.5.83 o0 know of mang COS uoaounw soE>ufidonH >n wouuoaom mcmod mo moo usom m H um 3an Good mo mo Hsom . domed .ESHuossh .mnoccufi 00H 00 >8>Hdm 85 Son.“ “055.8 85 >3 6830800 00H 88H. v voguom dogmsmuxm Eouh h Accowmcflm @3ch .8985 md8m.8>0 _ w mEmooflcvqu/w 2 4 1 wa Ammudoo oucovsommonuoov pmcwmflufiom _ : Eflmxm3< 0m «:8me snobmmm Gm m.8fi80 .850 wcmvcmfixx usoonmnm Ednmounm mswfidnrfi mo cofimood onmnspmmnm 0cm - 3.8me sumummm 5 mamnwoum wfifimufi “souomfifl 5 @8833”.qu 0:3 m.8c30 0N mo cofiuomo unm 0 H ..m 3nt - 143- experience, though such background is no substitute for detailed technical knowledge. However, 69 percent of the farms have hired managers who have had some sort of training, half of them at Abakaliki, and another third at other training centers in Eastern Nigeria (Table 5—17). The term ”manager" is in a number of instances an eloquent title dignifying a misnomer. Often they are virtually illiterate persons who have little interest in their work. Between trained owners and trained managers, over 70 percent of the enterprises had some level of Special training. However, the training is not reflected in work patterns on many premises; exemplified by empty water troughs, upset or empty feeders, Spilled feed and so forth. They are not, however, underpaid. Hired staff appear to be paid a wage competitive to off-farm Opportunities and there is a low rate of turn-over among employees. (During the studied five month period, on 21 farms, not a single person was dismissed, while some were added!) Many of these hired persons live at the poultry site seven days a week. But what is accomplished during this period is Open to question. On 28 percent of the farms interviewed neither owner nor manager had any training in poultry management, and on only 9 percent of the farms were both owner and manager trained. It must be noted, however, that a few of the non-formally trained owners had made individual efforts 0.0m: .>3H...80.9h .mEHmm 00H mo >8>u58 85 Scam nonpsm 85 >0 08:0800 00H 88H N 80.8wa 0.8883 cw 8.80080 0 888mu8>0 M. 0 mwnm8ofic8uma< . To. 3.8me 0.888H 00 8.80080 .850 00 333... m5008fi< “080.80“ Emnwoum mcflfimnfi 00 0038004 manumoum wcwcwmuh 8502.?» CM 0808303Hmm on? mu8w808§ we 00 cofiuomounm NIH ..m 3an -l45- to learn the business through textbooks, imported training materials and subscriptions to foreign poultry magazines. Some of these persons §_/ appeared to have learned their lessons well. Entrepreneurs were asked how many hours a day they Spent at their farm sites. Table 5~18 shows the distribution of reSponses. A few reSpondents claimed to work in excess of nine hours a day on their sites, but these are lumped into the eight hour cell. In fact the time Spent by owners on their farms is not inconsiderable, but the important thing, that cannot be measured by either a questionnaire “of simple questioning, is the effectiveness of their supervision or activity. Many farms (perhaps as many as 50) were visited by the writer during the course of this study. On these farm visits, numerous problems, deficiencies, Short- comings were apparent. Many glaring problems such as empty water and feed troughs were seen, even when the owner was about. Such neglect, usually Shrugged off, does not say much for the effective difference between resident and absentee management. However, other farms were well-run by both resident and absentee owners. Thus an argument can be made that time on the job, and residence on the farm, are not a Sine qua none for effective management. _8_/ Apprenticeship is one technique of training personnel that is not wideSpread but has impplications for costs of production in that several farms use apprentices who work for free to learn the business. .0000 .>0:hn8s:h 6.88.80 000 00 >8>H58 85 805 H0558 85 >0 0830600 . IO 4 . 2: mm mo mm 3‘ 3. 3 3 p 53.88an 8333850 N0 0N N0 0 0 >0 0 0 n 88E. 00 00505< 008>808m w000080m 8008000088m 00 “080.8% 0 N. 0 m w m N 0 0 Eumh 85 3». >80 .8nH 0081mm 8.303 800808008500 >0 88.2mm .085 00 >380 008Wm 8.303 00 ..m 80088 ~147- Since 1963 the MOA has Sponsored annual poultry conferences at the University of Nigeria, Nsukka to which many poultr ymen were invited to attend. These conferences, usually four days long, represent a useful media for technical training, provide an opportunity for government and producers to exchange ideas and complaints, and serve to give farmers market and general business information. About one-fifth of the reSpondentS participated in such a conference in any one year (Table 5-19). Most reSpondents (85 percent) said they intended to remain in the business, whereas an almost equal number stated they were sorry they had entered. The reasons which explain their present disillusionment with the poultry enterprise is reflected in the changes they would now like to see made. Most of the 100 reSpondents made at least two pr0posalS regarding changes they would like to see. The typical poultryman wants a great deal in return for a rather modest effort on his own part. For example: 17 percent want guaranteed profits; guaranteed markets for culls (24 percent) and eggs (27 percent). A further 12 percent want to make the marketing scheme compulsory, which reflects a pr0posal that poultr ymen sell to only a single outlet which in turn provides the ration they need. Conversely 7 percent want a better extension service and a wider market for their eggs (Table 5-20). com: .rdhuocoh .muoEumw on: mo >o>udm m5 Eouw Hofism 05 >3 voSmEoU .ooco cmfi v.88 ocow 93c mGOmnom Esme n no?» umfidoflumm m 5 covaofim o>mn o» mcwcfiflo mucovcoamou mBOnm owmucoonmm och. * A .xo .253 NM . scan 8 H mm mood _ om wax; 3 $2 “73039me o5 3o: mm? .5 mcwvcofi’w ucoo nonH ouconomcoo a ado». Aooofi-mooHv .93sz um 30: monouowcou kwfifisom 1393* m5 popcofi< 9rd: one. mucovcoamom mo cofiuoaoum m: um 3an do: .33.:935 .mnoEufl 9: mo >o>n5m on“ E03 Hogan 05 \3 @33800 m COEQESmcoo wmo 9050.3 30: ucoficuolwou v mot/Rom commcho uofimm N. omwnmuouco ovum 0.88 “so? . NH >u025m§00 oEonom mcfioxume 9132 w l hfi 03.3 boom ”Tamas...” acoEcHo>00 . NH mfimoum ooucmuwsm 0:098 Ho>00 wm 330 Mo 3mm mwcmuum ucoEcuo>00 hm 60360.3 wwwo in >53 «0080.8.»00 0H wcficmg 035mm mo omficoonom momcmnu vmmomonm ovmd 350.3 con; 530% “any >5";an wwm 33.88800 05 mcfluumwom >030& 033:& am momcmfiu om um 33mg. -150- Who are the seven percent wanting complete free enterprise? They are seven in number. Four of them are getting more than half of their income from the business, are less than five miles from their markets, and had owners trained in poultry management. Five of these farms said it was their most important business. Six of them had managers trained in poultry. And six had entered the business financed mainly from their own savings. The two critical factors that distinguish themselves seem to be the close proximity of the farms to their outlets and the higher than average level of training. Whether these seven were more or less profitable than the others is unknown. 5. The Poultr yman of Eastern Nigeria - An Aeraisal Our poultryman conforms to a rather complex pattern of behavior. On the one hand, we see a wealth of vocational experience; a relatively high level of education, a pr0pensity to save sufficiently to provide the would be investor with several hundreds of pounds of ready cash, and the obvious interest and willingness to use savings in a productive activity. Finally, he is a person who is relatively ambitious and typically something of a success in at least one other activity. On the other hand, this same poultr yman often puts his assets into an industry he understands only poorly. Further, he often does not avail himself of training opportunities open to him. Some farms have neither a trained owner or manager. Owners often seem unable or unwilling to -151- provide Close, constructive supervision over their staff. Finally, poultry- men are generally dissatisfied with the present state of the industry, yet Spectacularly fail to support or join the only region-wide organization available to them - the Poultry Producers Association - which can play the role of sounding board, pressure group and spokesman. Why are poultrymen so willing to enter and stay in business yet seem so unwilling to make a greater personal effort to help themselves succeed? To gain some additional insights into this question, numerous interviews were held with owners and perhaps fifty farms were personally visited. From these first hand experiences a number of observations and deductions have been made. Many farmers intuitively know better technical and business practices but do not always follow them. In many instances stated-practices by poultrymen varied from witnessed custom. A general problem seems to be a widespread failure to link decision with action. Numerous entrepreneurs know what they would like but, either lack the knowledge of how to do it, or, are unwilling to make the effort. A clear case in point is that of supervision of staff. In many cases, though management complained about sloppy work, the operators either absented themselves from the sites or, if present, failed to give effective leadership or direction. A striking reluctance by operators to make their staffs do -152- what was wanted was discerned on many farms. When the poor quality of work was remarked upon, reSponses indicated a tolerance for the condition that bordered on resigned indifference. A more fundamental problem is implicit in this regard. It often appears that these entrepreneurs are much more capable of, and indeed interested in, initiating their venture (an accomplishment in itself) than seeing a project through to its conclusion. Stated more simply, a marked lack of follow-through and attention to detail seems apparent. Once again reSpondents seemed aware of these short- comings but for one or another reason, perhaps conflicting claims on their attention, did little to reconcile the condition. Great satisfaction was gained from being in business, and much skill shown in perceiving and responding to Opportunity, but the impression was gained in such instances that much of the satisfaction came from talking about what could be as opposed to what realistically was feasible to them. Herculean ends were discussed in terms of Lilliputain means and wills. This tendency, of course differed among reSpondents but existed in varying degrees with them all. Where a Eur0pean businessman might feel 'guilty' if he failed to perform, such a failure here was put off with a chuckle. A further characteristic about entrepreneurs is an apparent brief attention Span in that, as problems become more difficult and involved, the operator seems to become confused and lose interest. Instead of -153- going for help, say to his extension worker, the whole operation is dr0pped. Repeatedly, in the course of discussion with private persons and with groups, the initial enthusiasm for a new idea seemed to wane when it became evident that understanding or performance might take more than a few minutes. Such characteristics help explain dwindling determination and interest on the part of operators - although an understanding of such behavior must await work from a different discipline than economics. A more general problem in Nigeria, but one shared by poultrymen, is the lack of understanding of contracts. The notion that an oral or written commitment is somewhat binding is repugnant. One farm called contracts a form of "slavery". Contracts are made, arrangements agreed upon, but they can be unstable. During this study several instances of contract violation were witnessed when poultr ymen departed from their contracts when a tempting alternative became available. When the contract was consequently lost the seller appeared bewildered. Once again the cause and effect may not be well understood. It must be conceded that business contracts, and the sanctity thereof, are European and not necessarily Ibo or Ibibio concepts. However, poultrymen are moving into a modern business sector and must learn the new rules sooner or later. The idea that the effects of one's breaking the rules today can come to haunt one tomorrow, or keeping them help you, often does not exist. The time horizon for decision-making is 'now', even when the -154- poultryman knows in fact that his flock will be around for months needing feed and producing eggs. One can only term this a very relaxed attitude toward the future, indicating that present short- term costs and benefits take precedent over the long-run except under a very favorable discount of the future income stream. Such observations, if made with regard to the genus homo bureaucraticus governmentalis, could be easily put aside with the comment ”after all it is not their money“! Clearly, in this case it is not only the reSpondents' money, but often is his major source of income financed by his savings. When this question was put to reSpondents a remarkably uniform reSponSe was elicited: if things go wrong the family, or the government, will help us out. In other words, these entrepreneurs, men of experience and education of above the average level, appeared tolerantly prepared to accept reversals fatalistically and with the comforting notion that if all was Spoiled, someone would be there to catch them. This basic attitude, deeply seated in Ibo social organization goes far toward explaining the "Slap—dash" attitude visible evident‘in business and husbandry practices on too many poultry firms. The attitude Springs from two separate sources - first, that of a traditional risk-Sharing social organization. Secondly, and it would seem more important, the attitude derives (in the case of a publically Sponsored industry) from -155- the relationship of individuals towards government and its works. It must be emphasized that, until very recently, the public sector was (for the Nigerians) an externally imposed body. Nigerians came into contact with this body in one of two ways. One, as an impersonally administered tax-collecting organization, towards which he felt no reSponsibility, but perhaps some animosity. Two, he saw the government as being one of Eur0peans who could produce great amounts of largesse for no accountable reason other than ”paternalism". It is on these two factors, the lack of feeling of association and reSponsibility towards government on the part of the individual, and the expectation of “paternalism" from government with no associated reciprocal act emanating from the individual, that seems to underlie many of the attitudes held by poultr ymen toward the poultry scheme. 6. Summary The poultr yman of Eastern Nigeria was described and evaluated as an entrepreneur, and to a somewhat lesser extent as a manager. Initially the representative poultr yman was compared to those found to be among the most efficient one-third. The distinction was found to lie in the smaller amount of formal education possessed by the latter group whereas the best-one-third supplement this deficiency, successfully, with trade and other business experience. Most poultrymen appear to have had four years in the business at the time of the enumeration, were -156- located on their family farms, used personal savings as their major source of capital for fixed asset, had a trained manager to operate the farm and did not keep very useful farm records if at all. Three quarters of the reSpondents earned no more than a quarter of their total income from the activity, although over half viewed it as their most important line of work. Owners seem, typically, to be rather poor poultry managers themselves, partially from lack of training and in part due to social and other environmental conditioning factors. In this latter regard, poultrymen were found to be somewhat better as entrepreneurs than as managers. They seem, on the whole, eager participants in new ventures, but reluctant to immerse themselves in the details required to transfer an initial investment into a continuing success. ~157- CHAPTER 6 COST OF PRODUCTION AND PR OFITA BILITY OF A R EPR ESENTA TIVE PR ODUCING FLOCK "In order to secure satisfactory returns from anyone of these (poultry) enterprises, the producer must have knowledge of the more important factors affecting returns and he must be a proficient manager capable of taking advantage of every Opportunity to secure increased returns from his enterprise. A first hand knowledge of the business and a high degree of managerial ability are two of the most important requisites for success”. _1_/ 1. Introduction a) Intent of the Chapter In the following two chapters we Shall examine, in some detail, the economics of commercial egg production at the farm Site. In this chapter (6), a representative commercial egg farm will be synthesized, using data gathered from a five month farm record study of 21 farms supplemented by the information from the survey of 100 producers. The chapter will detail its costs of Operations, and account for them. Its gross and net margins will be calculated. The farm will use the most common layer (RIR) and feed (MOA) ration. Its efficiency of Operations will be more or less average. The figures used in the calculations do not represent an actual studied farm, but are rather a synthesis of all i/ Jull, M.A. , Poultry Husbandry, McGraw Hill, Third Edition, 1951, Page 474. -l58- the studied farms. The claim is made that this 'synthetic' farm type is sufficiently representative of enough farms as to be able to function in a useful analytic role. We Shall not discuss, Specifically, the pOpulation sampled; but rather deductions made from the sample; the synthetic farm represents more than a simple average of the studied farms. In the next chapter, an effort will be made to explain the level of efficiency attained by this farm type and suggestions made as to how, by improved management, this level might be improved. The level of competence, background and training should be viewed as that of the representative entrepreneur in Chapter 5. The profitability of the representative farm will vary from province to province (as the local price of\eggs varies by district) reflecting the influence of location upon long-run survivability of the producing units. Thus a separate net mar gin will be produced for the representative farm in each of six locations allowing a reasonably good picture to be found as to the performance of such a farm under differing economic conditions. Once we have examined the cost structure of the typical farm, additional Synthetic types will be postulated in the following Chapter (7). These types will represent different combinations of observed data as to size, efficiency, hen type, feed type, against varying revenues (reflecting the different provincial prices) to see whether some combination - or synthetic type - holds better promise for survivability in one or many -159- of the possible locations. With this analytic framework we Shall examine the economic prospects to poultr ymen and the industry at large which follow from varying economic policy variables in Chapter (8). b) Methodology Used in the Clgpti-i Basic farm management material gathered from a detailed study of 33 flocks on 21 farms, and from a survey of 100 poultry farms in Six provinces of Eastern Nigeria provides grist for the analysis deve10ped in this chapter. This information, combined with such standard economic data as prices of chicks, labor, feed and eggs, will be used to prepare a partial budget of a synthetic farm representing the common commercial egg farm type found in the region. First, the total variable cost (TVC) of production per dozen eggs will be calculated and then, by deducting this sum from the total revenue (TR) per dozen eggs in a given province, a gross margin will be estimated. Finally, after making suitable deductions for depreciation and interest on capital invested in the enterprise, the net margin, or long-run profit, will be revealed. The basic unit of analysis will be the flock, a unit composed of hens of like-age and breed, of some typical size and efficiency under typical management. The costs incurred in handling this unit to produce eggs E/ The data used to deve10p the material presented in this chapter was obtained in a farm record survey conducted by the author during the last half of 1966. The detailed methodology appears in the appendix under phase II. -160-'- will be expressed in 'per-dozen' terms, the standard unit of measurement of egg production. 2. Budgeting - Its Purpose and Method Budgeting is a method of comparing alternative economic organizations to determine, and account for, their relative profitability. The technique, as used in the following analysis, combines the components of cost and revenue for a given organization to produce a gross margin, which represents the remainder of TR less TVC. If a budget is drawn for all enterprises contemplated by the farm, the process is termed a total budget. However, one may study a single enterprise in isolation, say a poultry enterprise, or one of its flocks, changing one assumption at a time - ceteriS paribus - to observe its effect on the dependent variable and thus on profitability. This procedure, followed below, is partial budgeting. The technique has its limitations. Although a useful tool for choosing between enterprises, factor combinations, and technologies, and for demonstrating their comparative profitability, the technique will not automatically identify Optimal levels of operation. In fact no attempt will be made in this analysis to identify such a level, rather the emphasis will focus entirely upon present organization, the economic effects Of their organization and ultimately upon policy. -161- Budgeting as a analytic method rests on three assumptions: (1) perfect competition, (2) factor proportionality and (3) the linear prOperties of the assumed production function. Such assumptions seem justified in the case of the poultry industry. Individual egg producing firms cannot of their independent actions normally influence prices of inputs purchased or product prices. The three hundred odd commercial producers purchase all their feed from two sellers and sell most of their eggs either to the egg marketing scheme or to various wholesalers or retailers. Also, 5/ the final product is homogeneous. The methodology of budget analysis requires that the assumption of fixed factor proportionality be made. This assumption is evidently consistent with reality insofar as the combination of feed and hens are concerned (the two most important variable inputs). The assumption of fixed factor proportionality implies that over the relevant range of activity (up to the limit of the capacity of the deep-litter floor) a straight-line cost function exists. Such a function presumes perfect divisibility to exist with reSpect to the variable inputs - which is to say, there will be no change in the efficiency with which these inputs combine at different levels of activity. Such conditions seem to be met in the case of this 2/ This statement must be qualified. If eggs are graded the gross output can no longer be viewed as purely homogeneous. But within any classification the eggs from any one farm are indis- tinguishable from those of any other. -162- industry which also allows the third budgeting assumption, linearity, to be met. The assumption of linearity is to the effect that all costs (other than fixed) - that is to say the aggregate variable costs - rise or fall in the same pr0portion as the quantity of output produced, if management is combining these inputs optimally. Further, beyond some output level - say the limit of the litter floor - expansion is impossible due to the restriction on the capacity of the fixed inputs. As the analysis will restrict itself to the cost of production of a dozen eggs by a single flock, there seems little point to expand the discussion into the long-run when the owner-Operator is free to vary the size of his plant, labor force and/0r move to evident alternative enterprises. One departure from the normal technique of partial budgeting will be made. As they are Often utilized, partial budgets represent a Special manner of handling essentially accounting data. Thus the product of the cost Side of the ledger will include both fixed and variable costs which sum to a total cost of production.‘ This method has limitations in ’circumstances where it is difficult to assign prices to all inputs, and where the structure of interest rates are as little deve10ped as in Eastern Nigeria. Also, depreciation rates remain an unknown quantity as the -163- longevity of the poultry houses are still moot. For these reasons the analysis will first of all focus upon the gross mar gin. A gross margin is calculated aS net of total return less the total variable cost, per unit of output. This method has the virtue of allowing different prices to be assigned to the fixed input to see what the possible effects will be upon the net margin or final return to management. Were a purely accounting method used (and experiments were made in this direction early in the analysis) the total costs become so substantial as to make most producers economically unviable to any length- of-run longer than the life of a producing flock, which outcome mis-states the actual economic behavior of the farms. This is aptly illustrated by the local custom by which it is morally incumbent upon a man who can afford to Operate a business to provide for his less fortunate kinsmen by offering them employment in the business though their marginal productivity may be very low. In return for his labor input the owner may provide the relative with some cash (usually no more than half the going wage given to the hird staff) and room and board. These charges ought not, strictly speaking, be debited against the egg enterprise as they are more a consumption item to the owner (which charges he would have to meet somehow whether the poultry Operations were there or not). If included, the costs of Operation would be overstated with the result of miS-stating the true economic circumstances -164- of the firm. Although not included in the calculation involved in the gross mar gin, a deduction for family labor will be calculated to illustrate its possible long-term impact on the net mar gin. 3. Variabl e Costs in Egg Production The commercial production of eggs is a business enterprise. An intensive husbandry technology, such as deep-litter, involves placing hens in confinement where they may be fed sufficient quantities Of feed such that they may simultaneously support themselves and produce enough eggs to make the enterprise at least break-even. The poultry manager must efficiently combine: hens, feed, labor, housing and utilities. Each of these inputs must be purchased and the enterprise repaid for them from the sale of eggs, culls, perhaps litter, and eventually the flock. The purchase of an input represents a cost to the enterprise. Costs may be viewed as fixed or variable depending upon the economic longevity of the input and the planning term involved. In commercial egg production three planning periods (in the Marshallian sense) may be identified. The shortest term involves only day-to-day adjustments in flock management: changes in feed levels, rates of culling, number of hired persons. In an intermediate planning period the pr0portion of factors variable to management increases; most important, the Size and composition of the flock can be determined. In the longest run, which transcends the lives of many flocks, housing needs can be adjusted. -165- For this analysis variable costs, being costs which can be influenced over the life of one producing flock, will absorb most of our attention. Costs of product per dozen may be expected to vary with Size of the flock, size of the whole enterprise, the type of layer, the locations of the firms and with the efficiency of management. a) Characteristics of the Synthetic (Rggresentative) Eg&Producer Commercial egg production rests upon the efficiency with which the hen can convert feed to eggs. Such conversion and rate of production may be expressed in terms which make them comparable among flocks so that the quality of hen and management are revealed. To deve10p records that are useful to management all the birds in a flock must be of exactly the same hatch date and breed. These records can give the feed conversion ration (pounds of feed per dozen eggs) and percent production (eggs per hundred birds per week). Such ratios were produced from the 28 flock 3/ records. The study did not continue sufficiently long for a record to be maintained over an entire laying life; so that only five months of any DCk'S life could be studied. To deve10p efficiency ratios an entire 3 history is required from a flock composed of a single hen type. As L Thir ty-three flock records were kept by 21 farms over a five month period. Some of these flocks were pullets during the whole period so that only 28 laying-flock histories were obtained. These records yielded entirely technical data: pounds of feed used, number of eggs laid, mortality and so forth. Moreover, they represented flocks of varying sizes and hen type. -166- living creatures, chickens perform differently at different ages. Rates Of egg production and the efficiency with which they convert feed to eggs are the function of age and these characteristics vary among different kinds of chickens. To overcome the constraint placed by time, synthetic flock histories had to be developed. The assumption was made that all birds of particular breed perform identically, such that variations from known norms may be assigned to manageme-Sn/t. A Synthetic flock history was assembled in the following way: 1. All hatch dates were gathered on date-breed basis. 2. The current age of the flock at the time of starting the farm records was noted. 3. The age at the end of the five month period, or laying life (whichever came first), was recorded. 4. All the records were kept on a per-flock basis and all the birds in a flock were of the same hatch-date. Flocks begin to lay at about 22 weeks of age, and continue for some 58 weeks. Insofar as possible, flocks were selected such that each breed was represented in the study for every week of its laying life so as to provide a continuous record of the breed's performance for the entire 5/ The details of this methodology are deve10ped under phase II, in the appendix. The management variable includes housing, culling, health, watering, feed and vice control. A! .i. -167- production period. Performance figures: feed-egg conversion, percentage production, livability, eggs per hen housed, and eggs per hen per week could be assembled against the independent variable - time. A diSpersion of the different performance figures were generated, per breed; over time, which diSperSion could be subjected to simple linear regression analysis, the final? representing the 'typical' performance figure. A straight-line is a less than perfect description of hen performance over time, which actually more resembles a skewed arc (Graph 6-1), conse- quently poor fits were obtained. Extreme Observations were drOpped and the figures representing the early production period ignored as these give an entirely unrealistic picture of life-long performance (for example, in the 22nd week a hen may eat 1. 8 pounds of feed and lay one egg! ). Hens typically arrive at a farm as day-old chicks. For the first twenty-two weeks of their lives they produce no eggs - but must be fed. After a flock begins to lay (normally at the 22nd week), output rises quickly from less than 5 percent (five eggs per hundred hens per day) to nearly 70 percent by the 30th week. This level may be sustained for a few weeks; then a gradual tapering off begins until by the seventieth week of age, very low levels are reached, when the flock is diSposed of. The rate at which this decline sets in is affected by breed, feeding and watering which, together and separately, greatly influence the average rate of production over the life history. The efficiency with which hens -168— Number of eggs per hundred hens per week Smugz mono .Nou Ba _uoma mucsod nlll Econ. Ba 33 I .3309 Eco.— .o >o>5m £coE xv. Set 86328 23 E0: 85:0 9: E 3585 ozmomq 10.5.: LO >40 20m“. xmwi oz< IFZOE wk Vb ON Ow NO mm VD On 0? N? mm Vm Om ON NN vim; ON m_ m_ N. w_ m_ 3 m. N. __ O_ m w k. m IFZOE — — n — - — — P — n n _ — w . 8 mm \l.\\l|| III!!! M \\\ m \ or. \. p 5‘ On l/\ W .m ms m m ZIMFmdfl Z. wxoOIE oz_>200 00m-ommu_ Tm cage -169- convert feed to eggs becomes as a mirror image of the rate of production; it too being biologically determined (Graph 6-1). Absolute levels of efficiency,‘ however, are a function of management. The flock must be fed enough to support its biological processes and then have enough left over to produce eggs. A third very important criteria of operational efficiency is mortality. Death occurring late‘ in the rearing period, or earl y in the laying period, represents a considerable loss to the produce in foregone production and thus revenue. Two additional measures of efficiency are: (1) egg per week per hen; and (2) per hen production of eggs over the laying life. These five efficiency indicators afford direct and meaningful standards of comparison between; types of hens, Sizes of flocks, feeding patterns and the general capacity of management. Such characteristics must be deve10ped if cost of production figures are to be generated (Table 6-1). b) The Representative Synthetic Farm A 'typical' poultry farm is likely to manifest the following characteristics. It will possess one cement block deep-litter house which cost about L 250 ($700). This unit houses two large flocks of 200 each and, periodically, 6/ one flock of growers. The henswill most likely be MOA /RIR and there _f_>_/ A grower flock is of 500 chicks (if unsexed) and half this number if sexed. All flocks of MOA /RIR day-old chicks are unsexed. .oomL 03H cw 08.3w am :0 >0>u50 30$ 809w uofidm >9 U0u0m0nm moan "00.30m £03» 053 a: v0£u000v 0% 0953300 0w 0H5m3 £000 :0??? a“ 905.38 03.5....n A.Noe N: 3; 0w: magma u0>0 0030300 no 003 u0nm m .N xoofi mo 83 magma n0>0 A00: .83 #003 u0a wwwm om 030$ wcgmfi mo 33.3.88 “000.8% . ow 000a 00H HOQ >00 H0m mwmm m . w .w 030 00950 0 00500.5 0“ 093300.." 000% m0 mossom mm m\ <02 0>flmuc0m 0 um0 m 0030:300H0n0 *000M 402 00m m3: <02 0>3300m0ud0m 0:» m0 003020009330 35830 Mao 03.08 04.? ( . ‘ ) v . . ~ 5 ,I. .1. 0.: .. .1... .. )3» 5.9.: v x. 1).. . ~ . . . 111' ’lll IIII'IIIII -l7l- is a more than even chance that they will be fed MOA ration. Two hired men are normally employed (and one family member will do some work in the house as well). c) Variable Costs of Production of Commercial Eggs Using the characteristics of technical efficiency outlined for a synthetic farm of representative type, and the following economic parameters, a partial budget for commercial egg production on such a farm can be calculated to produce an estimate of the cost of production for a dozen eggs. Item by item, the variable charges to a commercial egg Operation are: i. Cost of Feed is the quantity of feed (in pounds) used to produce a dozen eggs 113331 the reSpective cost per pound of feed; ii. Cost of Flock Replacement is the cost of the reared flock up to point-of—lay, less salvage and revenues from culls. The cost- of-r-earing a flock is the sum of the cost of the original stock of day-old chicks, plus the cost of feed over the rearing period, plus the associated labor and brooder (kerosene) charges less the revenue from cockerels sold at twelve weeks of age. iii. Cost of Labor is calculated by taking the annual cost of hired non-family labor for the entire poultry enterprise, and dividing by the number of tended flocks. iv. Other Charges: maintenance, litter and so forth are separately small and have been arbitrarily assumed together to be uniform at 1 (1. per dozen eggs for RIR. -l72- d.. Cost of Production Calculated for a Representative Flock Each of the four elements of cost specified above will be calculated separately and then summed to produce the TVC of production for a dozen eggs. The exercise will consider the cost of production for a flock of MOA-RIR fed on MOA-feed handled by a representative poultryman sustaining typical levels of feed conversion production and livability. 1. Cost of feed - MOA-RIR were found to be converting feed to eggs at a rate of 8. 8 pounds per dozen eggs. MOA feed costs 3. 2 d. per pound; so the incremental cost is 28. 2 d. per dozen eggs. 7/ 2. Hen degeciation - This calculation involves three steps. First, the cost of rearing the layer flock to point-of—lay must be determined. Second, the layer flock must be adjusted to account for deaths andculls and the salvage value calculated. Finally, this last figure is divided by the number of hens at point-of—lay to produce the depreciation per hen. To bring 200 MOA /RIR pullets to point-of—lay, a farmer must purchase 470 day-old chicks; half of whom will be male (as such stock is unsexed) and a sufficient margin to offset the normal 15 percent mortality must be purchased as well. The calculation is complicated by the presence of joint costs incurred in rearing cockerels (in unsexed flocks) up to at least 12 weeks of age, which has been worked out separately below. 1/ The term 'hen depreciation' is an accepted one in poultry management and describes the decline in value of a flock over its laying life from point-of—lay to the time of diSposal. -173- The cost of rearing RIR pullets for 22 weeks up to the point-of-lay on MOA feed; is as follows (expressed in pence): Purchase of day-old chicks - 235 females at 15 (1. each 3525 (1. §/ Feed, 26 lbs. at 3. 2 d/lb for 200 pullets 16640 Labor 2368 Other (6 d. each) 1200 Total cost 5 23733 d. From this cost we must deduct the net revenue from the sale of cockerels, which were grown for 12 weeks and then sold: Purchase of day-old chicks - 235 males at 15 (1. each 3525 d. Feed, 9 lbs. at 3. 2 d/lb for 200 cockerels 5760 Labor 888 Other (3 d. each) 600 Total cost 10773 (1. Gross revenue from sale of cockerels (90 d. each) 18000 Net revenue 7227 d. The deduction of the net revenue from the sale of cockerels from the total cost of rearing pullets leaves a net rearing cost of the layer flock of 16, 506 d. , or about L 69 ($190). 8/ As most grower casualties occur in the first few days when per chick feed consumption is very small, feed consumption for the 200 survivors alone is considered for simplicity sake. -174- The net rearing cost is adversely affected if the cockerels cannot be disposed of promptly. It is not at all unusual for such a flock, or a portion of it, to linger on for several weeks until completely sold. This reflects the very small market for quantities of birds available at one time. This situation will in many cases add to the cost of production of eggs above the level used in this paper. If a flock of 200 cockerels were retained for an extra four weeks (to 16 weeks of age), the marginal cost will be 3496 d. which will act to reduce net revenues from the flock to 3731 d. The net cost of production of pullets will correSpondingly increase to 1987 d. (L83 or $224). It is for this reason that farmers are persistent in their demand that either flocks be sexed or some provision be made for the prompt diSposal of cockerels. As will become evident, for a great many poultr ymen, this extra margin of cost can make the difference between profit and loss on the egg enterprise. With the value of the point-of—lay flock it is possible to calculate the hen depreciation. It is assumed (supported by observations at the farm sites) that some 15 percent of the initial layer flock will be culled and that 20 percent of a representative flock will die during the 'year it is kept on litter. Thus the size of the flock at time of disposal is 130. Value at point—of-lay (200 hens) 16, 506 d. Salvage value of flock and culls (160 hens) 13, 440 (which sell at 84 (1. each) Hen depreciation 3, 066 d. -175- The value of the laying flock declines, 3066 pence over the laying year, which is 23. 6 d. per hen and l. 94 d. per dozen eggs. 3. 1451231; - The representative farm has a normal staff of two hired persons. The survey of 100 farms revealed the monthly wage to vary considerably, both between and within the various provinces. Most employers supplemented cash wages with meals and sometimes a bed in the egg room. If meals are valued at 25/- ($3. 50) and the typical .hired worker is paid $8. 00 in cash each month the total monthly labor bills to the enterprise as a whole is L8 ($22.40) or L96 per year. As the typical farm usually must allocate its staff over three flocks (two layer and a grower), and the net size of the layer flock is 130 (allocating the cost to the living birds). The labor cost per flock then is found to be 7680 d. This works out to be 59 d. per hen and 4. 9 d. per dozen eggs. 4. (_)_th_er - Many charges were separately found to be very small on a cost per dozen egg basis: litter, repair and maintenance, tranSport. Hence a flat charge of l d. is given to cover all these costs, collectively (in the case of hybrid flocks this flat change is imputed to . 7 d. ). e. Total Cost of Production of a Dozen Eggs Summing up the incremental costs involved in producing a dozen Commercial eggs on a representative farm in Eastern Nigeria, the following total cost is revealed: -176- Feed 28. 2 d. (78%) Labor 4. 9 (14%) Hen depreciation 1. 9 ( 5%) Other 1. 0 ( 3%) 36. o d. (100%) The low wage rates paid in the region explain in part a cost composition different from that found on American poultry farms which have in addition to a high pr0portionate feed cost, a much higher comparative share from wages. This total cost, it must be restated, is on a farm feeding subsidized ration. Later it will be shown that if all other factors are held constant, the removal of this subsidy will increase total cost (of itself) by 60 percent. f. The Gross Margin for a Representative Farm The gross margin is the difference between the TVC and TR. The price paid per dozen varies by nearly a shilling (. 14¢) in different provinces, from 42 d. to 53 d. , but the average price is 46 d. or about four. shillings (. 55¢) (Table 6-2). The average farm, under typical management, can earn a positive gross margin in all six provinces at prices current in 1966. Their short- run viability is therefore assured. Failure to dispose of the cockerels Could, however, seriously narrow the margin. £00.30de 080500 wagging mm0 05 0.0:? m005>onnm in .mmm0 0&3 0wmu0>0 90m 000m 890m 05 00 0093 0mm m0owunH * S cm mm 3:; 3:98: S cm mm a}; 233mm 200 S cm 3. :13 2.826 . S cm 3. 82v $23ch m s cm ms 2kg ismsqm _ , s cm Na. A33 *iéfixmfi. wwwm c0uop 00m awmnmz 90000 n O.>..H .. *mB 000w>ounH A00G0Q GS p00h <02 00m mHm wsfim: m0ocw>ounm 5m d..“ 0Q>H H0ospoum 0>3300m0ud0m 00m mwmm c0006 00m mcww .32 «$000 To 038.. -178- Furthermore, the assumption is implicitly made that farms could in all cases readily dispose of their eggs in each province. This has not always been true eSpecially in provinces more remote from the Port Harcourt market. Failure to sell promptly would reduce the gross mar gins pr0portionately to the particular circumstances. g. Calculation of the Net Mar gin As the gross margin is a guideline for economic success in the short-run (say two years, ceteris paribus, in the case of the studied synthetic type), so the net mar gin is an indicator of the firm's longer- term prOSpects. The difference is comprised of at least two deductions which the firm must eventually acknowledge even if these can be postponed for the present. One of these is the cost of depreciation of buildings and equipment. The other is the interest on capital investment in the enterprise. This latter is essentially an opportunity cost signal which the poultry investor must realize and consider as alternative investments become visible over time. A final deduction, which might be made, but will not be, is that for family labor. Although a calculation is made for completeness sake the deduction will not be made, as the support of a family member, as argued above, is viewed as a consumption rather than production item. 1. Depreciation - Housing is an investment which yields a stream of productivity over time; a period transcending the active lives of many . . p . . ._ . . . x . . - . t . . . . . . I . . . y , .. ~ .. . . a a , . . 2 f 1 . . s ‘ . r»~~ _ _ . ) . r ._ i y _ o I . .. .. x . . v . . o , . . . 4 . . . . . t. . .. b .r, . A; ,, .. 0. A .e! .u I. . ‘ . . . ..I '1 .. ‘.- . I c . . . . . u. . t t . ,y .1 . . . . . . I. 0J a I< \ T 9 —. I’ V .. . c. p a -179- flocks. Depreciation is a method of charging current production for its share of this stream, which charge is to be credited against a 'sinking fund' that will eventually be used to replace the present house. The amount of the deduction for depreciation is a function of the estimated expected life of the building. Poultry houses, as they are typically constructed in Eastern Nigeria (of low quality cement blocks with a metal roof) may last 12 years (with adequate maintenance). The representative house cost L250 ($700) to build and can hold three flocks, in separate pens, at a time. If a house lasts 12 years and a flock survives for one and a half years, then about 22 flocks will be housed in it over the life of the building (assuming a new flock is started every six months, such that from the middle of the second year three flocks are continuously maintained). If the average laying flock terminates with 130 hens then 2860 hens will be eventually housed who pay for the house through their egg production. A house should provide 2. 5 square feet of Space per hen housgeil. In Eastern Nigeria the cost of housing per flock is 2727 d.; based on the division of cost of the average Space available by hens housed on representative farms. This figure divided by 130 hens and finally by their individual production yields a cost of depreciation per dozen eggs 0f l. 7 d. 2/ This is a standard density ratio recommended by poultr ymen under trOpical conditions. Any greater density brings about an increase in vices and loss of egg production, possibly as a result of greater unrest among the flock when less comfortable. In the United States this figure is about 1 square foot per hen. -180- A similar figure could be produced for the depreciation of equipment within the building (waterers, feeders, etc.) but this cost was found to be very small and is, therefore, ignored. 2. Interest on Capital Invested in the Enterprise - The capital invested in an enterprise is not free to the enterprise. Capital put in one venture is money that could be used elsewhere, thus it must be charged at its next best employment rate. In the United States this rate of interest is often taken to be the going interest rate on savings at a bank. The situation is less clear in Eastern Nigeria. The rates of return to alternative investments, say palm oil, are not yet available. One alternative is the rate of interest on loans, which are an estimated 10 percent from the banks. Privately made loans likely bring a greater return. The Government of Eastern Nigeria uses 7 percent in making its calculations. I have chosen 10 percent as the opportunity cost of the use of funds in poultry rather than in the loan market. Capital is invested in substantial sums in two points of the poultry enterprise: housing and the layer flocks. A separate figure must, therefore, be provided for each. With reSpect to the increment to total costs from the capital invested in housing, this sum is calculated by taking 10 percent of the average value of the house (imputed to be half the initial cost) for the ~181- 12 year period. When broken down to a cost per dozen egg basis, it is l". 2 d. 3. Calculation of the Net Margip - The net margin is obtained by deducting the incremental charges from the gross mar gin which total 2. 9 d. This is done for the gross margin of the representative Operation in each of the six provinces (Table 6-3). These net margins indicate that if the representative farm has been able to dispose of its cockerels and eggs promptly, they will earn a positive margin to their owners in the long-run. Even where family labor is debited against such an Operation (estimated in the typical case 191 to be 1. 5 d. per dozen) the enterprise would remain viable. 4. Summary The chapter has considered the methodology of analysis and cost structure of the production of a dozen eggs by a RIR flock fed MOA feed on a representative commercial egg Operation. The farm is representative in the sense that it is 'synthesized' from a sample of 21 farms and 33 flocks studied over a six month period in six provinces of Eastern Nigeria. Such a farm has two layer and one grower flock of 235 and 200 birds reSpectively. The growers are purchased unsexed and cockerels are sold, 1_/ It should be pointed out that the implicit cost to the entrepreneur is not included in the net mar gin as the amount of entr epreneur's time is known to vary enormously among farms (Table 5-18). H .HuH my .N pH .mEddED Hon—Va mu oN PH HHUOUHQHIH “Mom H .N. o .N OH 72030 . 2 . . mm H w o N OH 05330 _ H .4 a .N a swam H .m o .N o HafimHgHmn;fl mcHwanz 02 u msg#03600 H.309 mGHmnme/H mmOnU 00GH>onnH A00c0m :3 H000h H 00H mHm wGHms m00aH>onnH me CH 093w 0005HvounH 0>Hufic0m0ua0m 0 HOH mmwm c0950 H0m 8:932 02 muo 030R. ,..o.. . -183- if possible, at twelve weeks of age. The farm has two hired men and operates one house. The operation is not ideally sited. The owner conforms to the description Of a typical poultryman described in chapter 5. The measures of efficiency of operation are as follows: feed per dozen eggs, 8. 8 lbs; eggs per day per 100 hens, 40; mortality, 20 percent; eggs per hen over its laying life, 12 dozens. In all the studied provinces the representative farm is able to earn both a positive gross and net margin if it is able to diSpose of its cockerels promptly and sell its eggs. A typical farm in Eastern Nigeria, under typical management, can profit in the long-run using unsexed dual-purpose stock with subsidized feed even when poorly located. If well-sited, near the large Port Harcourt market, such a farm can earn a net mar gin of 14 (1. per dozen (nearly . 17¢). -l84- CHAPTER 7 PR OFITABILITY OF COMMERCIAL EGG PRODUCTION IN EASTERN NIGERIA "An ill-favoured thing sir. . . . . . but mine own'' ShakeSpeare As You Like It 1 . Intr oduction This chapter will expand the analysis begun in Chapter 6; employing the same methodology. Gross and net mar gins will be calculated for five additional types of synthetic enterprise: (1) representative; (2) best one- third; (3) small scale; (4) medium scale; (5) large scale. A separate calculation will be made within each of these classifications for hybrid and RIR and for both types on MOA and Pfizer fei—d. Twenty separate gross and net margins will be produced in each group and these tested in six provinces, 'to examine the short and long-term economic prOSpects of commercial egg producers. An analysis of the composition of the costs of production can give some idea as to what changes may be made on a particular farm type to improve its economic prOSpects. Finally, the _1_/ Only one technology, deep-litter, will be considered reflecting this system's almost universal presence. Only three battery cage operations are known to exist, all around Port Harcourt. , I .1. A ' ‘ ’- ’ a . . , , - . v v 4 ~ ‘ . . 1‘ ~ I ' ' “ '\ ‘ t . , . . . . a l \ . — l .’ ' l U ' .~ s I. ‘ ' 0 g .1 J. ' , . , ..' ._ . ,, (.' ..' '- x. . . - g , ‘A . v 0 . ~ . _ . . ' 1 . , . . I- - r -1 . . . _--_.-..‘_..-_..-.. V .-._. -.-._-—— . I . ‘ ' '- "1 u', , -..a U D . , ' . u.‘ ‘ ”'2 H ." \ l -185- analysis will provide a framework within which public policy may be considered in the following chapter. 2. Calculation of the Gross Mar gins for the Studied Synthetic Enterprises In this section the gross margins will be produced for all five organizations in their various ramifications. Most of the calculations appear on the accompanying tables, which follow the analytic method presented in the sample case in the previous chapter. The basic characteristics of these firms are first considered (Table 7-1). Each study-type represents a unique combination of number of flocks, size of flocks, size of staff and number of (and investment in) houses. These differences make themselves felt on the cost-per-dozen eggs which figure, presented as a gross and net margin, will illustrate the comparative and absolute profitability of the studied operations. Each classification operates at its own level of efficiency (Table 7-2a and 7-2b). The best one-third producers (using RIR) for example, have a comparatively low feed-egg conversion ration (5. 7 lbs. per dozen), produce the greatest number of eggs (170 per hen) and have the second lowest level of layer mortality (17 percent). The smallest producers are seen to be the least efficient in all categories; or they compare closely with the second poorest - the middle size producer. A small operation typically converts feed to eggs at 13. 2 lbs. per dozen, obtains 133 eggs u , ‘ : _ . » ~ / . ' u . . o a ». .. ’ ' - z . . . ‘ ‘ V ' ' , .v k z ' " . . . , . . , . - ‘7 . -' . ~' , . H, ' . p _. , , , t . .- ‘. . , .- ‘ . \ . , - . . . f . . l . Q . . ,7 ., 1... : “H 7 . ‘ . ‘ . ~186- .m>0>.§m 5000 CH 00000HHO0 0000 88.0 .8550 05 .3 00H0H50H00 $2 0o 08.80 3. ** .0m0nonsm .Ho 08H» «0 30250 HO 0030002 * m com com H. N 3000 0wu0d N oom mmm N H 3000 83002 H 02 wHH H H 0H000 HH0Em H com com m H 0.03708 $00 N oom mmm m H o>sflnommaom 002 00.33 **u0>01H *H03on0 u0>01H H0BOHO 0Q>B 03lo Ho .02 30lo Ho 03m 000lo Ho 0038.92 9830033030 00055 0>Hh 05 CH 003.500»ch H0504 0Hu0fic>m 05 Ho 003020009000 0.30m Huh 0HQ0H .m>0>.§m EH0H 5 00000200 .300 Scum 09350 05 >0, 00003300 #3 $0.0. axomm an: ego N 323 .82 0: SH m2 OS 3; 8: mags n0>o 00us0oum mmM0 mo H0£EdZ m .m m .N m .N m .m m .N 50 Eu £003 00m mwwm - m 3 2 0m S 00 nosusvoa 1 Ho “:00 90m . o .o o .NH N .2 n .m m .0 $000 $30 n0m .mnHv 9.50m conu0>Gou mm0u000h 0934 8.3002 HH0Em 0.35:0:0 000m vHooHrm .m0m 0030200000006 H0HH1H maw>0d 0.30de .35 0w0n0>0>u50 8800 8 00000200 0000 80.5“ .3550 05 >0, 0050H50H00 $0 cxomH obmH OE. 95w 3205.32 0mm moH 00H 0mm wHN 03H m5w>0H 896 0005098 0ww0 Ho 509852 .. mm o .m N. .m w .m o .m N .0 :0: 80m £003 80m 0mmmH . on mm 00 2 mm 803on mo 28 “mm o.0 o.w w.w w.m o .m Ammm0 80000 80¢ .033 030.” 830802800 ww0u000h 0904 83002 HH08m 0.037050 000m vHooHrm .m0m 00H00HH0500H05H0 A034 m8H>01H 08.350 n0>o 0w0u0>m 9305 08030030030 00H05um 05 mo 0033500009030 H008500B LN; 030B .l“’\0.\..‘l -189- per hen, and suffers a 32 percent mortality. The large scale producers are comparatively efficient enterprises at 9.1 lbs per dozen, 170 eggs per hen and 14 per cent mortality. Many of this group are identical to the producers in the best one-third. In fact, five of the seven best farmers in the survey are large and one each small and middle. Further, hybrids are the most efficient stock for all classes of operation. Typically, the small Operator, with hybrids, can convert feed to egg at 8. 8 lbs. per dozen, the larger operator at 6 lbs. per dozen and the best one—third at 3. 8 lbs. Mortality is markedly lower as well: 13 percent for small, 6 percent for large and 7 percent for best one-third. No significant difference was found between the two feed types other than price - MOA costing two-thirds of the price of Pfizer. Feed-egg conversion figures expressed in value terms appear in Table 7-3. Large operators use feed about as well as the representative, while small operations Spend half again as much for feed per dozen eggs produced. The best one-third operations produce a dozen eggs at only two-thirds the cost for feed of the representative and large operations and at only 40 percent of the cost incurred by the small producer. Hen flock depreciation is a very important part of the total cost-of- production. The cost-of—rearing to point-of—lay appears in Table 7-4a and 7-4b and flock depreciation in Table 7-5a and 7-5b. In the case of best one-third Operators, using RIR on MOA, the cost per dozen becomes .m>o>n:m Show cw wouoofloo dump Scum Hogan 93 >9 woumfidufimu w.w~ w .NN N .NN. N .2 N .NN 25am N.m¢ o .hm m.mo v..c..N Nimv Em 5: 8a 6 N J “comm .823 .n . 0 m . N .3 e .mN N .NN N .NH 0 .2 3.21m w.wN vdm N.Nv N4: Ndm mHm omnmd 83me imam bflfiuoco “mom o>flficomonaom 0Q>H .3.»de g: 8a .w N.N “comm <02 .m pooh HmwouoEEoU bum <02 magma mxoofim vowbfium 05 co mwmm GoNoQ mom pooh mo umoD m up 3an disk/.35 8.3m cw wouoodoo Sump Scum .3525 05 N3 woumgoamu .omm Ho 3395 NH um 30m 3 3.33000 .3393 mcwfidmmmw \M .6 ma 3 #030 you mownnm \m. 03$ ooNNH ONCE ooom E: 03$ 88 com 0% «N53 owmom nmoo momow coma womm oil...” mmmm oom mmm 8.9%on crow; 0mm; omen: coo 0:; owvmfi SBA ooH w: 2me wmwao ooomfi 3,.me ooom vw: oovmc omww com com anuuoco «mom oonwm hwmv mmomm oomfi womm ooovm mmmm oom mmm o>flfiaomoumom pooh 33.38600 .N _ omomm comm; ommmm ooom 0:; ooofiv ommw com com mwumq m filmm ppm: mmwwm oowH womm ooovm momm oom mmm 53602 _ owmo ooom oowmfi ooo 02L ommw ow: 00H m: :mccm wmwwm comma vmowm ooom vw: oooav omww ocm com phfiuoco “mom £9: NNNN. NNNNN 82 NeNN 2.9: mNmN 8N mNN o>sfic$oamm we: Hmm m ”Ho me000 I AHQQESZV mo \N 88h H.308 muofiO gonad pooh \H 3330 muofism 3330 ”500 32 Sam “02 wcwnmom mo «moU oufiw xoofih mama. xoofih pooh <02 .H Amazon c3 pooh 33908800 pod <02 co xoofih mHm iamfiumolpcwom oflofishm mo “moo $4. 033. -l92- .m>o>.§m 893 E 0300200 dump 80¢ nosusm 05 .3. 0335300 .e a. ma ono Sm 82m h NmSo ooom NiN ooeNo OENN com com «when N33. com: AcmNN 03? EN: oom mm... 8332 ENHN coo N$N omeNz N93. 2: N: :36 $23 ooom .NNS oovNe SomN com com 35-30 3mm :83. OONH AcmNN SSN 2m: 8N mNN o>uflamm2mom pooh 33905800 .N Nmoms ooom NEN 08$ SoNN com cam mwumq N35. 82 omNN SEN 3N: com Nmm 8332 NE: coo N$N ONNN NNS 2: N: :35 N23 ooom NNS 08:. SmNN com com 33.28 “mom :on OONH AENN 3.9: 2...: SN mNN guficgoaom 238:5 mcflmom 3&0 .883 Ban 3. 3330 3230 3330 mo $00 H.308 mfinmom mo $00 05% xoofim egg. xoofih pooh <02 .H 3380 G3 pooh fimmouoEEOD was <02 :0 xoofih 3.53m >mfium0uunmonfi oflofiswm mo «moo £1; 2an ' ' O|o. i. .\ n O a \ 3 .. . . .u . , 1.... . L . ., I. . 1.. l . a: . n _ . . .r. h to I. it‘ 1« .1. .l . II. . ‘ .J . . Q . e . ‘11. :ll .. .. . . . . . a. A .Qi 1.10 . . . .. It: . . .. :I O . 0....v . 4 ‘u .1. -5 . . .- . u . 1 .f . ‘u . a. .1 .u. b. ,l . . A , . n . ~ 4 ... .. . . ( o. . , , .. . 4 : ..;. ~ ‘ L, 14 . n- ; ,.. LIL . .. . T l a I .. . .. . .v . r . . . s . .3, ‘ lltt .11.‘ 0". .....l.1 It...). _...J o .l - I]! I ._ .. r ... M . . . u.. u I b.‘u( 1...}... I)» .s . I Q . . 2 . . . . . . . k N. . . . . I; V . . i f. . .|l . . .. i I. .3: yr 9. KI a . . u . . . . I. Q In. . . t . 0.: .J c ,v . v. ., . . X- » .r . . . w . . U . . . ) n a . , a _ . ~ » y I .11 I .. I . . . . v . . u x r - . w. . . . x .90.?30 EH00 5 00000200 .300 Scum .3550 05 .3 000350000 .0000 .0 0m 0000“ 00:00 wage: 00 0:0 00 030 0:00 0:0 0.2.90 005 wawgdmm< \IN. 002.90 m“ #000 52.00.0030 00 0000.00 ma mdwfismem< \fl m .m 0.: .. SEN ONSN mm... 2. E 3 com 803 033 N .2 m .37 ENNN- .02: 02 3 so NN oom 3.2% 8332 N54 937 3% - Nfim mm 3 NN Nm 2: OS: :«Em N .m N .NN - SEN- 82A 3% 3. mm 2 com NNNNQ 0.05-25 300 o .a o .3 H - 8N3- 032 02 om 2. ON 8N ABEN 30883390 000nm H30H08800 3N . 3 w N.o+ o.: + o? + ONSN mmm ms 2. 3 com 08mm «N34 . m .N o .NN - 28- .02: SH 2. so NN com 3.sz 8332 0N .o N .3 - 33.. SS mm m: NN Nm 2: 82. 23:0 - H. + N... + SNX SN 2. mm 2 com NNNNN 330.28 030 so .H o .NN £8- .0 30.2 92 om 3. ON SN .0 08.: 303533; \Wmflso 0000030 .0me 003 .000 0G0 030$ 00 083 0000 .000 00m 00m xuofih 00 0.3g 00 xoofl 0:30 .02 axe x00Hh >0Humo$nwom 0&H x0lo ”003.300.2400 0w0>~0m «0 03m \fl 90.33.32 0 03m 00 03.3w 0000. 030008800 000 <02 00 003lo .mHm 030£uc>m .30 :030w00um00 :03 Ho 0000 0m uh 0:908 000k <02 .H all-.110 -194- .m>0>u5m 850m 53 00000200 0000 8050 50550 05 >0. 0000250200 .0000 .0 0w 00000 00:00 mcfwfl m0 000 00 0200 050: 000 0:50 005 mcwE5mm< \M w .2002.“ >0Hnm0uuzwom 05 m0 0500900 m2 0O— 00 00E5mm< \ N .N O .N3 NNNNN- ONNON NON Np ON N OON NNSO NNSA O .2 N .N: ONNNN- NNSN 2N NN NN NH OON NONON 83002 O .NH N .NON NONE .. NONN. N5 N5 N5 N5 OOH NONHN 2080 N .N N .N3 NNNNN- ONONN ONN N0. NN O OON NNONO 030.28 $00 1O N 5: N82. NNNNN NNH ON 3 N OON SOON. 30853300 Ummh Hdwohweenunv .N N .N w .NN NSNN- ONNON NON Nu ON O OON NNONN. mNnmA N .N N .5: ONNNN- NNSN SN N0 ON NH OON NHNS 8:302 N .N N .NNH ONNO - NONN N» N5 N5 N0 OOH 032 5080 N .0 N .NN NOONN- ONOON OON NN NN O OON NNHNN 008-28 :60 N .NN O .NNH NNNN .. NNNNN NNH ON 2 N OON :NNN 30333.50; wwwm 20000020 000 003 \M. 0:50 00 083 H0nH 50m .000 0w 200$ 00 V2000 0000 0030200um00 200:2 mo 05200, 00 0020 0:50 .02 ON. x090 >073 nucwom , 0&B x0032 0w0>20m 0072 \IH. 403001.82 mo 0Nwm p0 05H0> 000%. 2020 508800 000 am In. 02£0H <02 :0 002.532 00 x002h 0200£pc>m .30 503000.500 :03 Ho 0000 000mm <02 . 2 . o . I...|..o . . v o . u . I. . ..l a D . . . I. O I Q . r 1 u p . V .1 v‘ . cl: -l95- insignificant. For small and medium producers using RIR stock and commercial feed the per dozen cost is very visible (15 and 13 pence reSpectively). The cost of labor appears to vary considerably among groups (Table 7-6a and 7-6b). 0n small Operations, using RIR, it is ten times greater per dozen eggs than on the best-third operations. These variations follow from the comparative staff-flock size ratios, which point will be deve10ped later in the chapter. The incremental costs of production summed give the total variable cost of production (Table 7-7a and 7-7‘6). These calculations make the importance of feed as a component of total cost and relative importance of subsized feed apparent. It is the largest single cost component in ever y cla s sification. Share of Feed in the Total Variable Cost of Production of Eggs* MOA Feed Pfizer Feed RIR Hybrid Rm Hybrid Representative 79% 55% 74% 70% Best one-third 90 70 77 69 Small 71 67 7O 70 Medium 80 71 75 73 Large 90 76 86 76 * Calculated from Table 7-7a and 7-7b. E/ In this table the gross mar gin is calculated by deducting 46 d. from the TVC. This TR figure represents the typical cost per dozen eggs in Eastern Nigeria. O I w 2.0 .»- H' “ ——-—'~ "‘~ ..-‘. \ i V I \ , -. ,_. ~ , . O.— ‘ l —, \ -- ‘I" . I‘J_ ”-4 ‘ , _ N _ . ’ . \ ‘ 5““ —~ \ -\ x a .1 .. -‘-- .0>0>5:0 E500 5N 00000200 0000 605w 50550 05 NE 0000250200 N .O NH OONN NON N 0 03 N 00.23 N .N mm own: oHN 2 N 00 N E.3002 w .0 cm 000m NF 2 2 N0. 2 :08m m .o w .o owwm com 2 N ww 2 05N£Nu0G01000m .0 N .N .0 ON .0 ONNN 0N5 H N NO 0 N 3090002000 0wme 50: 2002 50@ 020035. 50.504 503050 50302 0052 50“ 050050q .000 500 50302 005B 00 0020072 mo .02 0025050050 00 33 005E 00>.H. x007m 50a 0000 0000 00 0000 002m 0N0? 205550 20008 mo .02 0me 50000 50% : 0N5n>m mo xoofih 0200£uc>m 0 500 50304 Ho 0000 _ 6 noun 030B 0/ . 5.5 3 ONNN NNN N 0 03 N 00.23 m .0 wv omen mm: 2 N 00 N 8.3002 w .0 on: o0hm mm H 2 wv 2 :08m w .o 2 00mm 00m 2 N N0 2 05N£0u050u000m .0 O .0 .0 ON .0 ONNN ONH N 5 NO 0 N 30083300 0wwm 50: 02000 50m #0020. 50>01H 503050 50302 0052 50m 050050m .000 500 500.02 005.3 00 820lo mo .02 035050050 00 :3 0052 0Q>H x002rm 50a 0000 0000 Ho 0000 00mm 0m03 205500 20009. mo .02 0wmm 50000 50A .. Mum m0 Moorm 0200nuc>m 0 500 50004 H0 0000 00 IN. 0308 002005550 8500 52 000002200 0000 805w 5052050 05 >52 0000250200 .000 .500022 .520005 00550500520555 w52052052 * N .0 N .ON 5.5 N .NN N .N 033 0.0m 0.00. m .0 0.0m m.M2 E52002 m.m0 m.ow N5 m.mo N.m2 22085 O22 O.NN N.O 0.NN N.N 0030-03-00.00 2.22 2 .Nm 0 .0 N .N0 0 .o 0>250uc0005a0m 000M 202050555500 .N _ 7 9 _ o.m2 2.2m 2.2 w.wN w.o 0m5012 N .2 N .00 m .0 0 .mm m .m 852002 N.m2 N60. w.o N.N0 N0 2085 o .0N + 0 .ON w .o N .22 . 052520-000u000m2 o .02 + o .90. o .0 N .wN o .2 0>200050005m0m2 “052 222B 5% 508 00052050. 0>.H_ *5050 500.012 000m 50302005000 0mg. 0200202 .000 00 00000 SO 05. 02 000 200500 :3 000m 2020 508800 050 <02 00 2002M Em 020052056 50.2 0ww0 50000 500 503050050 .20 5000 0N -N 2000. 000M <02 .2 -l98- .m>0>.3m 80.3 02 2000002200 .3020 800.2 005.00 05 >n 20000200200 .30 £00022 £20000.“ 00000000208 0022002002 * o .o + o .3 p . h .o m .3. w .o 033 N0 . N.Nm 2. . N.N 0.wm 0 .02 802200022 m.02 .. mice n. w.0 N.N0 A0N2 220ccm mg: + NAN h. m.o N.w2 wd 0.030-000.0030 2.m + o .00 N. . m .N m .3. 2.0 wifigcomoummm 2000h 202988800 .N 2.3. + 0.0m F. To ~62 m0 033 N.o2 + w.mm w. N.N o.mN m.» 80220032 c .0 + 0 .N0 h . w .0 N .wN m .w 22mEm m .NN + N. .2.2 N. . m .o N .N2 m .0 2Z2fiu000uum0m 0.02 + 2 .mm 5. m .N m.w2 >.N2 0>2umuc0m0ua0m "0Q 2223. 0&0me mmouw 05 0>H *0050 003012 2000n2 00002003020 002.2 0328 V2002h .30 2 5.30 Ba me 02 2000h <02>2 .2 200000 :3 200mm 2020008800 2000 <02 :0 #0072 3.53.2 020050>m new mwwm 000020 000 coflosvoum mo “moo n2. -2. 030,2. -l99- The absolute share of total cost by feed is the function of several factors which operate to push it up and down. Efficient use of labor, use of sexed stock, wasteful use of feed or poor feeding methods, and larger flocks raise the share of feed in total cost. Use of hybrid stock and efficient use of feed act to reduce the pr0portional importance of feed. High rearing costs are typical of smaller operations with their comparatively inefficient use of labor seem to account for the .lower feed cost figures of these classifications. On U.S Operations, as noted in the previous chapter, a high feed share of TVC is viewed as indicative of efficient use of other inputs, feed being the cheapest input to commercial egg production. The ratio seems a good indicator in Nigeria as well. The actual gross margins for the studied groups are obtained on a per province basis by deducting the total variable costs of each classification fr om the total revenue per dozen prevailing in each province (Table 7-8a and 7-8b). Positive gross margins are obtained in most of the studied Classifications except on small farms where RIR are used or where hybrid flo cks are fed Pfizer feed. Hybrid on Pfizer is the highest cost combination f0und. RIR on Pfizer yield negative gross margins in every case except on best one-third farms. The importance of the subsidized feed is clear; negative gross mar gins are obtained only on small farms with RIR stock. Where MOA is fed to higher producing stock no negative mar gins are found and only one break-even occurs. 0029,0200 2.5.2.3 :2 2000002200 00020 80.2w H0500 05 >0, 20000250200 N .N .. N .N + w .0 - 0 .0 - 0 N - w .0 - 00.23 0.NN - 0.mN - 0.00 - 0.00 - 0.NN - 0.0m - 83002 m .00 - 0 .0... - 0 .00 - 0 .N0 - 0 .00 - m .00 - 22.02am 02 + 02 + o .22 + o .22 + w + e + 0.300-000-0000 2.0 - 2.0 - 2.22 - 2.22 - 2.02 - 2 .02 .. 03082803000 2000h 2029208800 .N . m 0.2N. + 0.2N + 0.02 + 20.02 + 0.22 + 0.02 + 00.8.2 2 _ N .0 + N .0 + a .2 + a .2 + n .0 - a .0 - 830022 N .0 - N .0 - N .N2 - N .N2 - N .02 - N .2 - 228cm mm + mm + 0N + 0N + NN + NN + 20.030.80.030 2 + 2 + 02 + o2 + h + o + 0>2u0000m0ha0m 022202283 0.300.002 000nm 2.2.2030 02200200 dwdcm 202220v20n2< 092B 02002h 00222>0Hn2 2000M <02 .2 200000 GS 0290972 0.200000 mo 3002.022 x2m c2 2000M 2020008800 2000 <02 :0 00h mxoo2h Em 0200595 .200 0029202 mmonO 0w 4. 030B .m>0>udm 8.200 02 2000002200 00020 80¢ .8330 02: >02 20000200200 0.02 + 0.02 + 0.0 + 0.0 + 0.0 + 0.0 + 003.2 0.0 0 0.0 .. N.0 - N.0 - N.0 - N.02 - 85220022 N.0 .. N.N. . m.02 u m.02 u m.>2 u m.w2 .. 22.00am de + de + w.o2 + N62 + mg: + w.m2 + 20n22tu0co$m0m 2 .N2 + 2 .N2 + 2 .m + 2 .m + 2 .N + 2.2 + 0>2u0000m0nm0m . 2000M 202000828200 .N M . 2.0N + 2.0N + 2.2N + 2..2N + 2.02 + 2.: + 00.3.2 N.02 + N.02 + N.o2 + N.o2 + N.N. + N.0 + 8022002 22 + 22 + 0 + 0 + 2 + . 220Em m .mm + m .mm + m .NN + m .NN + m .mN + m .0N + 20.22220u000uum0m 0.: + 0.02 + 0.02 + 0.02 + 0.2. + 0.0 + 03080003032 022205802 0.3000002 0.8% 2.2030 02.23200 2&ch 2x220v20n< 02529 0200202 0002>oun2 2002.200 03 02.20372 0.200000 00 3002.032 005 2.22 200092 2029205800 2000 <02 00 00h mxoo2n2 2020220202 0200500w .80 00290.32 000.20 02w IN. 020,0.H 2000mm <02 .2 -202- The pattern of synthetic enterprises which do and do not cover their variable costs, reflected by their gross margins, is presented in Table 7-9a and 7-9b. This table illustrates the short-run weakness of the smaller commercial egg concerns and once again the importance of subsidized feed to the survival of these firms. When this pattern of short-run profitability is compared with the distribution of farm sizes in the six provinces (Table 7-10), a rather stern picture emerges. 0f the total poultry farms in the region, some two-thirds are small, a quarter large and a twelfth of medium size. As only some 30 percent of all the stock in the Eastern Region is hybrid (and mainly on the larger farms) it must be assumed that most of the farms in the other groups use RIR. The farms in Abakaliki, Enugu and Onitsha typically use MOA feed; Owerri is mixed, and the other [two provinces normally consume Pfizer. Hence, most of the small and medium farms in the latter provinces cannot survive in the short-run due to their stock type and 70 percent of the small producers in the region and 60 percent of the medium are located in these provinces! Altogether, a third of the total producers in the region, for reasons of stock and lack of subsidized feed, are not viable as commercial Operations in the short-run. When it is recalled that small farms with MOA-fed RIR, typically do not break-even, the position of such farms in all provinces, which represent 75 percent of the total productive units, is doubtful. It seems likely, under 0D,. .m>0>.§m 8.03 2.22 2000002200 00020 80.2.2 .8550 03» >3 20000250200 0 n 0 .. .. 0m .04 N2 0 o u N 8.0220022 N2 0 o u o 220Em n .. .. .. .. 00230-000uum0m 20 u o .. .. 0>2u0000m0um0m 50.302 00.0.6 020002 Em 02.5.20 02m 00.20. V2002.02 0>200m00 3023 20008 H0N2wnm <02>2 003.02 000.00 0>$0m072 0>03 3023B m0n2>B 002.20.200.00 02003uc>m MW 30-0 02308 7.0 002000000 G0>0v200n3 000 .0 ON 0 N o 0 0m .0012 N2 N u o 0 80220032 0 - u *2+m u 209% 0N 0 0 0 0 2002220050000 N2 20 u o o 0>2u0pc0m0ua0m 020.802 00.80 2:00.202 Em 020022; Em 0002.2. 0282.0 0302000 3023 20008 .20Nfln2 <02>2 . 3wa0 20:0 0wu0 00230H. F203 2008825 “0023.202 000.20 0>202mon2 0>03 30233 002:8 00200000252 0200300>m 00-0 030.2. .m>0>.~dm 8.20m 05 Scam 2009000902 00.020 3023 620.300.” <02>2 80.2.2 H0550 03a >3 200002220200 2: MN 02 00 20008 00 2 m 2 m 2 2. 003008202 002 0N N2 om 0022000002 0."an 002 ON 02 mo 2.3030 . 4 w 002 0N m2 mm 033200 . 002 mm 22 00 00:00 oo 2 w 2 NN 00 “V2220V203< o5 ONO 2K. oNa 20009. 0wu0d 80220022 22.00am 00030 .Nnm 0.000309% 200220.3w 2H2 0020002300020 020om 3000 0002 $2220“ 0890M .20 con—Homonm o 2 In. 0230H -205- the circumstances revealed in Tables 7-9 and 7-10, that no more than a third of the firms operating in Eastern Nigeria earn positive gross margins. The remaining two-thirds would, if no changes occur in the economic or managerial variables confront a bleak future. 3. Calculation of Net Margins for the Studied Synthetic Enterprises The apprOpriate deductions have been calculated for all the studied synthetic flocks and are outlined in tabular form: house depreciation (Table 7-lla and 7-llb); interest on capital invested (Table 7-12a and 7-12b); and the cost of family labor to the poultry enterprise (Table 7-13a and 7-13b). This latter deduction, however, is not entered in the final calculation of the net mar gin for the reasons outlined in the previous chapter. The total deductions to be made from the gross margins appear in summary form in Table 7-14a and 7-14b and the final net margins are presented for each flock in the six provinces in Table 7-15a and 74-15b. The representative farm is little affected by the deductions accruing from fixed costs, however, small and medium farms are greatly affected eSpecially those using commercial feed. When these additional farms are deducted from those having positive gross margins perhaps as few as a quarter of the commercial egg Operations in Eastern Nigeria can be said to be profitable in the long-run, and these being mainly the largest best-sited firms (Table 7-16). 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V2822 0.932 m 0 mm 3.33 20208 mcww .202 2072 m>3wmonm 050: £033 003.222.20qu Qwumnuc>m 2.822 BEE 0o 2 up @509 womb wONwamndm <02 -213- this fraction would become yet smaller and the industry shrink to a few large farms located near Port Harcourt and Enugu. 4. Factors Affecting Farm Efficiency In this section we shall consider only 'on-farm' factors affecting farm efficiency. The role of public policy as this related to farm Operations will be left to Chapter 8. Each cost factor will be considered separately, beginning with feed. A poultryman would logically use the cheapest feed available, in this case MOA. However, MOA is not available throughout the region, and its supply has been erratic, furthermore, some farmers feel its quality varies which together act to restrict a poultryman's freedom of choice. As a result the more costly commercial feed is fed on a large number of farms. The farmer can nevertheless influence his feed cost by good feeding practices. Such practices vary and could be generally improved. Many farmers do not adjust their levels of feeding as the flock ages, thus a flock can be both over and under fed during its laying life. Feeding equipment is often crude and wasteful of rations. Watering, which can have an important role in lay, is often neglected. Feed 'is Spilled, attacked by rodents or otherwise wasted. Smaller farms, where poultry is often a minor or secondary enterprise, are eSpecial sinners in these regards. More efficient feed use is an important and comparatively -214- simple matter to correct and one which, if corrected, could move many losing farms into the black. A second vital area Open to farmers to improve their operations is quality Of stock. One of the easiest steps towards widening net mar gins would be tO replace RIR with hybrid birds. This action alone would allow the typical small and medium farm to attain positive net mar gins using MOA feed so long as the price Of eggs did not fall below 45 d. (. 52 ¢). A hybrid hen typically produces five dozen more eggs over her laying life than does a RIR and requires about three pounds less feed per dozen to do it. The hybrid has a mortality Of half that Of RIR stock and can be purchased in sexed flocks, removing the worrisome problem Of cockerels. Lack of supply of hybrid birds seems to be one reason why farms have not adopted this type earlier; in very few cases does the extra cost per chick appear to have been a significant factor. The cost of labor, very high comparatively on smaller farms, is another source of high costs which can be remedied by the Operator. Smaller farms are eSpecially inefficient in the use Of their labor input. The small farm typically has one full-time hired man at the site while the middle size farm has two. The ratio Of hired man to birds on litter indicates the considerable diSparity between the small and large, the small and best one-third Operations. -215- Ratio of Hired Men to Hens on Litter * Farm Type Hybrid RIR Representative 1:300 1:400 Best one-third 1:2000 1:2500 Small 1:200 1:300 Medium 1:450 1:600 Large 1:1000 1:1333 * Calculated from Table 7-1. This diSparity in the efficiency with which labor is combined in the Operation is also revealed in the comparative share of the labor charge in the total variable costs. On a small farm with MOA-fed RIR, labor costs 17 percent of the TVC, whereas it is 5 percent on the best one-third and 13 percent on the largest farms. For a small farm, with hybrids on MOA, the labor share is 12 percent versus 3 percent on the best one-third. On those farms using hybrids fed Pfizer feed, labor costs 8 percent Of the total on small farms and 2 percent on the best one-third. Two courses seem Open to the small commercial unit in this circumstance. Increase the ratio Of birds to labor; which is to say increase the size of farm. Or, replace hired labor with cheaper family labor. This last Option may be more appealing in the abstract than in practice in that most farmers interviewed complained about the equal difficulty in getting family members to work or to fire them. Kinsmen were more Often viewed as a burden to be borne than an asset. It is -216- also likely that kinsmen take advantage of the difficult social situation in which the Operator finds himself involved and do not seem particularly pressed to work for really quite low wages. Raising their wage brings up the other problem of increasing labor costs. Reducing the labor force is feasible in many instances. A number of farms Of all sizes were found to be over staffed, although in many cases these represented a number Of kinsmen rather than full-time hired persons. In the case Of a small flock with a single man, the solution would be to use the man in other enterprises as well, or increase the number and size Of flocks. A number of alternatives seem Open with regard to this common problem. Extravagant housing is another source Of high production costs although a comparatively minor one on a cost-per-dozen basis. Many smaller farms are comparatively high cost Operations with reSpect to their cost per hen Cost per hen Housed for Studied Firms* Farm Type Cost Per Hen (in gence) Representative 100 Best one-third 30 Small 120 Medium 93 Large 58 * Calculated from Table 7-lla and 7-llb. housed. All the classes Of farms studied could build cheaper housing than they are using. One small farm was found housing a 100 hens in a L9 house -217- (about 21 d. per hen housed); and in fact this farm was among the best one-third. Similarly, a large farm (not included in the cost of production survey) housed 500 birds in a L50 for 24 d. per hen housed. These houses were imaginatively constructed Of local materials: mud, thatch and wire in the case Of the smaller houses; cement blocks, wire and thatch in the larger. Cost of housing could have been cheaper on almost every farm included in the survey. Although such savings will not greatly affect the cost per unit of production, it could greatly affect the initial scale of Operation possible to a farmer by allowing him to use money formerly earmarked to housing for an extra flock. (It costs L 70 to bring a small hybrid flock to point- of-lay; and a typical house on a small farm was found to cost L 100.) Of a minor nature, it was found that almost all the farms visited had poorly designed, and an over abundance Of, rather costly equipment. For example, some nests costing L 3-5 were commonly seen, although much cheaper alternatives were available. Probably on no farm does this factor affect the net margin significantly, but it is one more economy possible to almost all poultrymen. An important improvement of a more intangible nature must be a general upgrading of flock handling. Provision Of ample water, awareness Of vices, keeping the house cool, minimizing flock disturbances, effectively -218- isolating flocks.from each other and from outside birds are all management activities typically deficient. Better supervision of staff could reduce Spillages and feed wastage, remove sick birds, keep water trOughs filled. Implicit in these steps outlined above is an additional one; the need by Operators to become better managers. The most important single step available to poultr ymen to improve their management is to adOpt, master and utilize modern poultry record-keeping techniques. This need has been noted previously, but the point cannot be overstated. Good records, allowing the Operator Specific up-tO-date information on the performance Of each flock throughout its life is a necessity. However, on not a single farm of the 100 initially surveyed are such records kept! As some or all of the above practices are adOpted, farms can become more efficient and more profitable. At prevailing egg prices, farms of all studied scales could become economically viable enterprises in the long-run. We have seen that even small Operations under conditions Of good management can become as efficient as the best one-third and this without prOper record keeping methods! Poor location is a constraint which cannot be completely Offset by even excellent management, and might be ultimately fatal, but under economic conditions prevailing in Eastern Nigeria most poultry Operations could become profitable enterprises with adjustments Open to the individual farmer. ~219- One important factor may act to keep many Operations from improving. There is among an unknown number of farmers some indecision whether they are commercial Operators or keepers Of large backyard flocks which serve to earn a little extra to the farm. It will be recalled from Chapter 5 that nearly half Of the studied poultrymen receive very little cash income from their flocks and that nearly forty percent did not view the enterprise as their most important work. These attitudes were not correlated with scale of holding but it seems safe to infer that these groups likely held smaller flocks and poorer grade stock as well. If this be the case (and recall 60 percent Of the recorded farms are small) a substantial share of the total operations in Eastern Nigeria are not likely to improve due to indifference on the part Of their owners. This evaluation suggests that we may expect only half the poultry Operations to significantly improve themselves from their own efforts and that these farms will more likely be larger than smaller in size; namely those in excess Of 2-3 layer flocks comprising upwards of 600 layers. This, as well as the economics of poultry farming deve10ped in this chapter strongly suggests that the direction Of the industry will be towards larger Operations. Many farms are presently surviving on subsidized feed and/or living on their invested capital. The pattern in many cases is high overhead, low levels of output, high mortality, poor AR -220- use of feed and poor location. Yet upwards of a hundred farms are operated as serious commercial ventures, in many cases with high levels Of output, good feed use and near good markets. 5. Summary An analysis of 33 flocks on 21 farms in Eastern Nigeria indicates that farms Of all sizes can produce positive net mar gins under prices for inputs and product presently existing in the region. Nevertheless, smaller and medium size farms (less than 600 layers) are often unprofitable (being over staffed, over-invested in housing and more often than not poorly managed. Many farms of (all scales) are poorly sited as well. Better management, use of high quality stock, good feeding methods could make smaller farms sufficiently efficient to provide the margin necessary for survival and growth. Needed changes in practices by poultrymen of all scales but eSpecially the smaller can be summed up as follows in descending order Of importance: 1. Shift tO hybrid egg-specialist stock. 2. Take steps necessary to improve efficiency of feed use: including use of farm records, careful supervision of feed use, provision of ample water. 3. More efficient use of labor; by either reducing staff or increasing the size of Operation with reSpect to the existing staff. -221- 4. More careful training and supervision Of staff; this would lead to better flock handling which would reduce mortality, vices, feed wastage, etc. 5. Better house design and cheaper housing. Whereas better practices are immediately Open to poultrymen to autonomously improve themselves, the tendency by a large number Of poultrymen is to view their Operations as only semi-commercial which suggests that in many cases improvements will not be. made. The thrust of the industry is therefore towards larger Operations clustered about the larger towns. But this trend will be slowed so long as subsidized feed remains available and egg prices remain near 4/- per dozen. Were good or better practices to be adOpted on the farms, the ensuing savings from increased mar gins would likely lead to a gradual increase in the size of Operations if these margins were reinvested in the enterprise. With hybrid stock, subsidized feed and present egg prices and good management, farms Of all scales could continue to Operate and prOSper in most sites inEastern Nigeria. Were egg prices to decline much below 3/9 (. 52 ¢) per dozen the economic conditions Of many farms would become critical. -222- CHAPTER 8 ECONOMIC CONSIDERATIONS AND ALTERNATIVES OPEN TO PUBLIC POLICY “Two men look out through the same bars: one sees the mud, and one the stars". F. Langbridge A Cluster of Quiet Thoughts 1 . Intr oduction This chapter will view the commercial egg industry from the standpoint of public policy, and will deal with those opportunities Open to government, Off-farm, to help poultry farms and the commercial egg industry. Following a brief review of the assumptions made by the public sector regarding their initial policy, the variables relevant to the supply and demand curves associated with the egg industry will be examined. Some of the alternatives Open to public policy will be discussed and finally a Specific policy proposal, based on this analysis, will be presented. 2. Public Policy and the Commercial Egg Industry The commercial egg industry Of Eastern Nigeria was conceived and initiated as a means to produce a cheap protein-rich food by what was expected to become an economically viable industry. Planners -223- adopted the strategy Of subsidizing the major cost items in commercial egg production (feed and chicks) to reduce risk, and the costs of entry and to increase the rate of return to poultrymen, during the learning period (when presumably they could be earning a higher rate of return in some alternative investment). This strategy, and thus ultimately the industry, rested upon several assumptions. First, a large potential market did exist which would be tapped as egg prices fell. In this regard it was presumed that the lower prices would act to Offset the low absolute money incomes earned by most urban Nigerians in sufficient degree to allow them to become steady consumers of the product. Second, the provision of subsidized inputs would stimulate the supply of eggs in three ways. First, by attracting entrepreneurs. Second, making the enterprise remunerative even to relatively inexperienced managers. Third, as farmers mastered the technology, and consequently improved their management of it, the costs Of production would fall sufficiently that subsidies could be with- drawn (even when egg prices became low.'), and still have enough poultrymen survive to produce the needed number of eggs, economically. The extent to which these assumptions have been justified has been tested by the subsequent history of the scheme. On some counts the venture has been a success: imported eggs quickly vanished (Table 8-1); egg prices fell tO half their 1959—60 level; substantial local production .moflmfifim .20 03me 20uopmrm .03me swscm 320200.200 500022 00D >3 “00202022000 @220 200.2000on 0 000.0 3000-00000002 N 000.0 0002 0 200.0 0002 00 000.00 N002 00 200.002 2002 002 000.002 0002 00 200.00 0002 . M 00 000 .20 . 0002 Z _ 00 020.00 0002 00 000.00 0002 00 200.00 0002 02 020.20 0002 0002 mo 00. m0 moSHO> 3.200% 00.209023 mo 02220> .200? 0002-2.002 02.80272 8.: 2323.850 .8 22220 020 00002 00 00.8082 Hum 030H. -225- has been achieved. Yet the proportion Of urban persons who consume eggs frequently enough tO be Of some nutritional benefits remains small with little likelihood of widening until commercial eggs reach a price not too y far above Guinea fowl eggs (which sell at 2 d. each or 24 d. per dozen). The reasons for this have been examined in Chapter 4. Moreover, even with subsidized inputs and, (more recently), supported egg prices as well, many producers (as we have seen in Chapter 7) are unlikely to remain in Operation unless they can markedly improve their levels Of management. In this context several alternative policies are Open to government planners; to pursue the program with its present nutritional objectives; seek alternative and perhaps more modest objectives; ortO withdraw public participation. Government can, by policy measures, influence the economic environment in which farms Operate. To estimate how and in what manner policy can influence producers and the industry, it is useful to consider the basic variables Operative in the commercial egg industry. These variables express themselves through the supply and demand curves for commercial eggs, each having a distinctive but unmeasured slope, which cause egg prices tO vary in a particular manner as the relative importance of the variables change. The slope of the curves will vary , through time as well. In the case of the supply curve the lepe will _1_/ This is probably too stiff a test for a not completely equivalent product. But a 3 (1. egg (36 d. per day) seems a feasible objective. -226- depend upon factors affecting the cost of production of eggs and their distribution to consumers. Its absolute position, with regard to price quantity supplied, will be a function Of rate of entry and exit, expansion or contraction Of flock sizes, and technology. The price and availability Of feed; price, supply and varieties of chicks; quality and reliability Of veterinary support; quality of management and marketing arrangements will all affect egg supply. The short-run supply should be fairly inelastic as egg production needs time to be significantly varied. In the case of demand for eggs, family income, tastes, alternative foods, numbers and location of retail outlets will play a role. A case has been made (in Chapter 4) for a rather inelastic demand curve for eggs, eSpecially at prices greater than 2 d. per egg. This deduction was based in part on family buying habits, levels of income and the experience of the nearest substitute - the Guinea fowl eggs. The consumer survey suggests that prices can fall from their present level of about 4/- to 4/6 per dozen (depending upon location) to 3/- and still only reach a rather narrow wedge of the urban market. Below 3/- (. 42¢) the majority Of the urban public can begin to afford to become regular consumers of eggs. Aside from subsidizing the price of eggs to consumers, few policies Open to government can appreciably affect the level of consumption. Until prices are reduced, substantially promotional campaigns can have only a very limited impact. -227- Public policy can more easily affect the supply of eggs, and thus their final price. Although very short-run changes in supply can be accomplished by farmers through on-farm adjustments in flock size and number Of flocks, hen type, certain cost-cutting acts and generally more efficient management, government can affect all these indirectly. It can influence on-farm decisions fairly quickly by changes in feed subsidy, improvements in egg marketing and input supply arrangements, and by providing better hen stock or selling chicks at concessional prices. Policy can have a more gradual effect through the extension service and by farm credit programs. Price supports for eggs are likely to have some short-term impact but a much stronger influence over the longer-term as consequent decisions are made regarding size Of Operations. The supply curve is more amenable tO (and in fact has been the loci of ) public policy, which has largely accepted the demand curve as given. Given the rather steep slopes associated with these curves, egg price fluctuations can be, and have been, considerable and most fluctuations have emanated from shifts in the supply side against a more stable demand curve. A final comment must be made before considering policy possibilities. It is important to recall that the typical poultryman is not a subsistence farmer in any sense of the term. These farmers are largely urban persons with close rural links but who are nonetheless highly visible and Often reSpected members Of the rural community and who may also -228- be viewed as trend setters by example to their rural neighbors. They are market-oriented in their activities and have learned poultry technology in a comparatively modern environment. These are decision-makers who have reSponded in a rational manner to economic stimuli. Poultrymen have shown themselves to be constantly adopting from experience and refashioning their technical organization and management to minimize costs. They enter, expand, decline or exit depending upon their ability to judge economic conditions as these interact with technical and locational factors. There is every reason to believe that poultry husbandry- men and the egg industry is reSponsive to public policy. 3. Public Objectives Reconsidered Policy is applied with a particular Objective in view, and to be effective the objective should be Specified in quantitative terms in some time reference. The government Of Eastern Nigeria has been vague in regard to the time when these were to be achieved. However the regional objective remains: an egg per urban person per week (in the indefinite future)! At the present rate of production there are about eight eggs per urban person available annually and, due to price, most of the consumption occurs among the higher income groups. How much extra effort is needed to meet the goal is suggested by the size of the potential consuming public compared with the present scale of the industry. In 1963-64, there were -229- an estimated 3, 700, 000 urban persons in the region who, at the targeted consumption rate, could consume over sixteen million eggs annually. This production would require nearly a million hybrid hens consuming 40, 000 short tons of feed annually! The reality is a little over 100, 000 hens, consuming less than 10, 000 tons of feed (itself in Short supply) to produce about two million dozen eggs. Given a discrepancy of this magnitude it is altogether doubtful whether the regional government will be prepared to take the policy measures necessary to close the gap. In this light the question must be raised, what can the public be expected to do for some 350 poultrymen in a region comprising nearly 12, 000, 000 persons and confronted with a hundred other claims on resources which could benefit more persons sooner? What should government do? First, the public Objective must be restated and second, the necessary implementing policies worked out. What realistic Objectives are Open to the industry within the constraints imposed by the government's decreased willingness to continue tO support the industry? Let us first consider these farms which are able to produce the cheapest eggs (Table 8-2). If we assume that a cheap egg is anything less than 3/6 or 42 d. per dozen (3. 5 d. per egg) then a reasonably hopeful future can exist for many farms, so long as subsidized feed is available. Farms with average amangerial competence can produce 022.0 050 02.2.0 000 220.0 09“.. 0.0-0 32002. 80.22 000023200 N .m o .wm .. - 0m .2012 .. u .. u 922222002 n u u u 220205 N.N 0.0N o.m m Om 002222-0220u200m2 u I .. .. 0>220222000HQ0~2 wmm 00% 2000 .0020 .2022 2000 wwm .2022 2000 .0020 .2002 2000 0&8 «20020.2 023002 .0020 .2022 0:” 220222 0002 20 wc2os2ooun2 20 co 0mwm 220NOQ .20nm mHm 022202200 092.202 2020 mwm .20n2 cofiosponnm 20 2000 20208 2000M 202090822200 .N nunw 022208 2 0 B N.N 0.0.0. 0.0 0.00 002012 2 .m 2.. .020. .. s 22220220022 I n u .. 22022.2w 0.2 0.02 0.2 0.2m 20.225-03-230 2 .m 0.0m N.m odm 0>220222000un20~2 wwm .NOU wmm .0020 . .2022 2000 .2002 2000 .2002 2000 .2020 2000 0928 02002.02 0232222 020 20022022 2.23 .0020 .2002 o\m 00220 0002 0 92203200902 00 020200200 0800b :0 0mmm 220Non2 .2002 20220 mwm .20n2 22022022200202 20 2000 20208 0.0-0 030.2. 08.2 00000230 .2 -231- such eggs, even with RIR stock. Nevertheless, the importance of hybrid stock is apparent (Table 8-2a) and eSpecially scale. These two factors become even more important in the absence of subsidized feed (Table 8-2b). The Best one-third farms, let it be recalled, typically have 1500 hens on litter, plus 500 pullets. They hire one man in addition to the owner-Operator, whereas the otherwise comparable large farm has three hired men. The large farm has 500 more hens and 500 more pullets than the Best one-third. Both types use feed efficiently, get high production per hen and have low mortality levels. Most Best one-third farms are large. Given the presence Of a body Of efficient producers, and given that the original nutritional Objective is beyond the financial and political means now available to the industry what should public policy 12%? The above figures indicate that producers Of all scales of production analyzed in Chapters 6-7 and especially those with good management, can produce far more cheaply than is typical. _2_/ One consideration must be kept in mind by planners, however. The figures appearing in Table 8-2 do not include distribution costs from producer to consumer nor do they include the Opportunity cost to producers. It is not clear that an egg producer could equal the profit possible from alternative Opportunities while producing eggs from 1/6 (1. to 3. 5 each. The comparative rates Of return from alternative enterprises - cocoa, Oil palm, pineapple, etc. are not available, but this is a considerable of which the entrepreneur would take into account -232- If comparatively cheap eggs are possible under conditions presently prevailing in Eastern Nigeria, and given both the considerable public investment already made and the consumers evident liking for eggs, if cheaply priced, it would seem the best policy to work with the industry, make it more efficient while reducing the level Of public financial involvement. This will be the policy line recommended by this thesis. Why not some other alternative? Why not drOp the scheme, withdraw public support from what is admittedly a small number of Operators employing a small number of workers producing at present a product reaching only the well-tO-do? a. If No Change Occurred in Public Policy? If present policies were continued it seems clear (from the analysis in Chapter 7) that the original nutritional Objective would remain unful- filled for a long time to come. The number of producers m uld eventually dwindle until as few as a third or even a quarter Of the present number remained, largely clustered about Port Harcourt and Enugu-Onitsha. There would certainly be a tendency toward larger producers, but under the umbrella Of subsidies a number Of not very efficient producers could continue for an indefinite period living on their capital. The remaining large producers would likely expand production somewhat, as dictated by their individual economies of scale. Eggs accordingly would become available to a progressively wider market, as prices fell. The size of -233- holdings would very likely increase up to the limit permitted by feed supplies. Were the regional government prepared to compound up to 40, 000 tons Of feed annually and support its low price for MOA feed, the nutritional target could be fulfilled, but at a considerable cost and by perhaps no more than 100 producers in the very indefinite future. But we have seen that this is an unlikely eventuality. b. Withdrawal from the Industry Of the alternative policies Open to the government most involve some form Of disengagement. The most straight-forward would have been to drOp the scheme entirely, withdraw support, leaving poultrymen to fend for themselves. Some egg producer's, Pfizer, and some hatcheries could survive such a decision which would result in a very small industry comprised Of a few very large efficient producers selling eggs above 3/- per dozen to the main markets. There are, however, moral and practical (to say nothing of political) difficulties in such a decision. By encouraging private persons to invest in the scheme government assumed a moral reSponsibility, implicitly assuring poultrymen by its act of Sponsorship that it would not drop the scheme abruptly. Practically, government has a real interest in not setting such a precedent. Future schemes will also require participation by private persons. Government needs the trust Of potential entrepreneurs before they will COOperate in development programs, but trust must be well-founded. A precipitate -234- termination of a program, even a loser, will not build such trust. If the poultry industry is to be drOpped, it is in the public interest to phase a withdrawal. In such a circumstance it would be best to candidly concede that initial hOpes proved unfounded and that prOSpects do not seem sufficiently hopeful to justify further promotion. But that in the interest of those who participated public withdrawal will be slow enough to allow poultrymen time to retrench. 4. The Policy Promised by this Study This study recognizes that government is unlikely to continue the present policy with regard to the commercial industry. It proposes, as an alternative, a phased withdrawal designed as to the support some portion of the industry that a considerable public investment has already brought into being. This position is argued on two counts. First, to maintain pOpular confidence in future public programs. Second, to protect those entrepreneurs who have invested and who appear able to succeed both as poultr ymen and as agents in more general rural deve10pment. TO accomplish this Objective the following policy seems feasible: i. to take steps through the extension service and agricultural university to improve the quality of poultry management. ii. to encourage expansion Of the supply of hybrid stock. iii. to continue the veterinary support program, but as a service paid for by the users. iv. tO withdraw the feed subsidy by a given date, say two years, -235- after (i) and (ii) above are initiated, and established. By phasing the withdrawal, the government would simultaneously show reSponsibility toward the industry it brought into being and give time and the means to producers to learn to operate their farms as agro-businesses. The inefficient poorly located producers would be squeezed out. The pr0posed scheme would involve a considerable restructuring (and retraining) of the extension service. The service would have to teach agro-business and demonstrate and guide the use Of modern record-keeping and flock management. The preparation of farm business materials and follow-up research into their use would afford an opportunity for closer university- extension serviceOOOperation. A continuous feed-back, analysis, and shift in extension services resulting from a clearer idea of farmer needs would result from this sort Of cooperation and would be fruitful preparation for similar services to other farm enterprises as well. Publically- supported credit could be linked to the use of farm records, and perhaps include more direct supervision of farm management. This would involve closer COOperation between extension, credit and university staff, permitting scope for feed-back among government, farmers and research groups supporting farm deve10pment. The government hatchery at Abakaliki should cease to produce and distribute RIR stock. So long as it remains in this activity (and the -236- regional government has said this is ”temporary") it should produce. sexed hybrid egg-Specialist stock. Private hatcheries would follow such initiatives and indeed will anticipate it. There seems no good reason why commercial farms should not pay for inoculation of their stock. The service could be made more efficient by increasing the number Of staff giving service to the flocks by reducing the presently high formal qualifications required Of these persons. Once these three steps were under taken the MOA could announce that feed subsidies would terminate in a given period; a sufficient period for the alert producer to master better practices, get better stock, and prepare himself to be completely independent of off-farm support for his cost structure. This longer-term approach would quite possibly permit from half- to two-thirds of the present number of producers in the industry to remain. Total egg production would likely increase and egg prices could fall to within the 3/- (. 42¢) per dozen range. 5. Summary DeSpite a substantial public investment in the commercial egg scheme on the part of the Eastern region government since 1960-61; the industry has failed to accomplish its purpose: sufficient production -237- to supply one egg per urban person weekly at a reasonable price. This failure stems in part from epidemics, feed shortages and distributional weaknesses, but primarily it rests upon two related factors. First, the low absolute incomes in the urban areas require that prices approach 3/- per dozen to reach the desired market. This price is too low to be economically feasible to most egg producers. Second, poor management keeps most producers from being able to produce efficiently enough to reach the mass market: Many of those who are sufficiently efficient, do so with subsidized feed. The regional government is unwilling to take those steps necessary to subsidize the industry to the fulfillment Of its nutritional goal. The analysis performed in this thesis suggests the following policy. The thesis recommends a phased withdrawal of the MOA, but one designed in such a way to protect insofar as possible the public investment in the industry and public confidence in future agricultural development schemes. Prior to the termination of subsidized feeds the following steps are recommended. First, hybrid stock be made available on a large scale. Second, the extension service in COOperation with the land-grant university develop and make available suitable farm management materials, assist in the training Of poultr ymen in their use and interpretation. Third, end the subsidized feed supplies at some date sufficiently in the future (say two years) that serious poultrymen have a chance to digest the first -238- three changes. Thereafter the MOA should let the chips fall where they may as regards individual producer survivability. This scheme would give reason to expect about a third Of the present producers to survive, these being the larger, the better managed and the best located. AS the economies of commercial egg production argue for increased scale it would be reasonable to expect a slowly growing egg supply (in excess Of that presently produced by 350 Operations) and falling egg prices. With good management a very large number of the remaining producers should be able to approach a 3/- per dozen price. This will not satisfy the regional objective but will provide a solid foundation from which to expand urban incomes rise. '3; _v) -239- CHAPTER 9 SUMMARY AND CONCLUSIONS “For youth, the future is long the past is short . . . it is easily deceived because it is quick to hope”. Aristotle 1. Summary The Objectives Of this thesis were to analyze the economics of the commercial egg industry Of Eastern Nigeria and to make public policy recommendations for the industry before the Nigerian-Biafran civil war started in July 1967. The commercial egg scheme was primarily conceived by the Government in Eastern Nigeria in the early 1960's as an investment in social welfare under the assumption that the protein shortage in Eastern Nigeria could be efficiently supplied by modern poultry technology. The goal Of one egg per week for every urban consumer was implied in Eastern Nigeria's 1962-68 Plan. To achieve this goal the regional government used a variety of policy tools to expand private production in order to drive down the price of eggs and to replace egg imports. Subsidized feed and chicks, free veterinary and technical support were the primary incentives offered by government. -240- The government launched an intensive production campaign in 1961 and by 1965 some 400 producers with about 150, 000 hens produced nearly 182, 000 dozen eggs. In 1965 supporting services for the industry included: one government and two private hatcheries, and a large veterinary and extension service. However, this substantial public effort of approximately L 700, 000 up to 1966 (or nearly $2, 000, 000) failed to even approach the scheme's implicit objective of one egg per week for each urban consumer. The 1965 level of production could provide, if equitably distributed, about eight eggs per urban person annually. The failure of the scheme was at least implicitly acknowledged by the regional government in early 1967 when it terminated an egg marketing scheme and began to consider a general retrenchment of the whole program. A number of problems have plagued the program. The supply of maize was erratic. An epidemic virtually destroyed the production of day old chicks for a year. The RIR stock provided by the government was inferior as compared with hybrid stock supplied by a private hatchery. The market for eggs was limited as soon as egg imports were replaced with local eggs. The commercial egg scheme like most other agricultural production schemes in Eastern Nigeria's 1962-68 Plan was launched with very little micro-data on the economics of egg production and with a lack -241- Of knowledge of consumer expenditure patterns. For these reasons the focus of this thesis involved the collection Of primary data on egg production and consumption. A survey Of 100 poultry entrepreneurs was completed in 1966. Farm records were collected for 33 flocks on 21 farms over a six-month period in 1966. Finally a survey of 456 consumers in four cities in Eastern Nigeria was completed in 1966. The data generated in the study suggest how the industry should be reorganized if the Nigerian-Biafran civil war had not taken place during the 1967-70 period. For these reasons the use of the term ”Eastern Nigeria'l refers to the land area and conditions in Nigeria prior to the Civil War. The records from the 33 flocks on 21 farms provided technical data for synthesizing five types Of farms: representative, best one-third, small, medium and large. Each type of farm was characterized by a unique combination Of technical coefficients (feed- egg conversion, mortality, eggs per hen, etc. ), and levels of input use (number of workers, investment in house and equipment). The groups were further broken down by hen type (RIR and hybrid) and feed type (subsidized and commercial). Finally, the economics of production was compared in six main markets. The analysis of net margins revealed the importance Of scale and management in profitable poultry farming. In the case Of subsidized feeds, all five types of farm units using hybrid stock -242- earned a positive net margin. With subsidized feed and RIR stock, the small producer category failed to obtain a positive net margin. In the case of farms using commercial feed (non-subsidized) and RR stock, only the best one-third produced positive net margins. However, two-thirds of the regions' farms are small, two- thirds of the total stock is RIR and one-half of the feed fed is subsidized. The owners of the best one-third firms had more experience in trade and business relative tO the representative owner. The representative poultryman had been in the poultry business for four years, located his Operation at the family farm, employed a manager and did not keep adequate farm records. Many owners were urban persons who operated as absentee Operators providing little guidance to the management of the firm. Whereas half of those interviewed considered the enterprise as their most important work, three quarters of them earned less than a quarter of their incomes from their flock. A number of farm adjustments are possible in order to improve the efficiency of egg production. A switch from RIR to hybrid stock is the most important. Better feed use and especially better feeders can help improve efficiency. Better flock management is needed. A smaller labor force would increase gross margins. In the long-run -243- cheaper housing would stretch the capital investment of many units. All Of these changes could lead to more efficient and likely larger egg enterprises. The consumer survey revealed that although eggs were a widely accepted ”superior" food, less than 20 percent Of those interviewed were consuming one egg a week. However, 74 percent said they would eat more eggs if prices fell. Egg consumption was found to be highly correlated with income and education levels. Low per capital incomes were found tO be the greatest barrier to an expansion Of egg consumption. The Government of Eastern Nigeria has decisions to make in light of the heavy subsidy that has been used to support the industry. This thesis advances the following policy recommendations. Since the government encouraged about 800 farmers to enter commercial poultry production it is important for the government to maintain an active interest in the poultry industry. If the government withdraws its support a credibility gap will emerge and other government programs could suffer. The main recommendations are for the government to (a) continue research to drive down the cost of producing maize, (b) upgrade its extension program in order to Offer better managerial advice to farmers - eSpecially to encourage farmers to adOpt hybrid stock, (c) encourage about half Of the present producers - mainly those near large urban centers - to continue producing eggs, L -244- (d) continue the veterinary support program, and (e) withdraw the feed subsidy by a given date, say two years. If the above steps are adOpted about half of the smaller and inefficient producers will likely withdraw from the industry over a two-year period. Our data reveal that well-managed farms using commercial feeds and hybrid stock can produce eggs at the farm- gate for about 2/3 (. 31¢) per dozen which is about the same price as the nearest substitute - guinea fowl eggs. TranSportation, wholesaling and retailing will add a further lld. (. 14¢) per dozen in order that consumers should be able to purchase eggs in urban centers for about 3/3 per dozen. If the above adjustments are made my research suggests that Eastern Nigeria could support an unsubsidized industry of 150 producers each with 2, 000 layers (the present size of the best one-third Of the units). These 150 producers could produce about six million dozen eggs annually without any government feed subsidy. The six million figure is still only 40 percent Of the level needed to meet the nutritional goal, but produced by a viable unsubsidized industry. There seems little sc0pe to reduce the cost of production below the levels presently reached by the best one-third. Further reductions in the price to consumers would have to come from improvements in the efficiency of the distribution system. “- .‘Ji ‘4 c Q - -245- 2. Conclusions PerSpective has a great deal to do with the judgments one reaches with regard to the priorities of development. One can argue that a massive expansion and upgrading Of social-services - health, nutrition, welfare - is a prerequisite for accelerated expansion Of national product. Or one can argue, that such services follow from the growth of economic capacities and will be limited by the size of the supporting economic base. It seems questionable, given the vast needs confronting Eastern Nigeria in 1961 that it was the prOper time to invest so many resources in promoting egg production in order to solve the protein problems of Eastern Nigeria consumers. Moreover, little if any attention was given to alternative approaches to achieving the nutritional goal. Instead, increased poultry production was assumed to be an end in itself. Even though the price Of eggs was reduced and egg imports were eliminated, the program benefited a few urban consumers and did little to improve the nutrition of the bulk Of society. The relatively high cost of maize and poor management are two major problems which prevented the price Of eggs in urban centers to fall below 3s 3d. per dozen. The lack of effective demand (purchasing) among the average consumer dictates the need for the average urban consumer to search for cheaper sources of protein than eggs. Moreover, if feed subsidies are eliminated, about one-half Of the producers will -Z46- leave the industry. If feed subsidies are eliminated the ability of the industry to reach a mass market will depend on measures to increase the effective demand of the masses, and reduce the cost of producing maize and improving the management of producing eggs. A number of other countries have also initiated commercial egg projects, usually on the grounds that they are simple to start. Failure in these countries, or partial success, has been most Often associated with a lack of market than the inability to introduce the new techniques Of production. This has been as true in Punjab, for example, as in Eastern Nigeria. A careful examination into the potential market for eggs would appear an important first step in evaluating a commercial egg scheme. Interestingly in neither the Indian nor Nigerian case was such an inquiry made; a market was assumed. 3. Opportunities for Research In the course Of this study a number of areas have been identified which would appear to offer fruitful future research Opportunities. These are: a. alternative sources of protein, both cereal and. animal. b. alternative types of feed inputs which could substitute for maize. c. problems of maize improvement, its cultivation, production and distribution. d. cost and feasibility studies Of feed mill, hatchery and vaccine production. -247— e. responses by entrepreneurs to varying credit arrangements. f. study into decision-making and relevant variables in indigenous management. g. study of types of record-keeping and interpretation possible for semi-literate managers of small enterprises. h. deve10pment of teaching techniques Of business management principles. i. food consumption surveys. j. farm management analysis Of organization and economic efficiency on "mixed” farms. k. inquiry into alternative organization of COOperatives. 1. analysis of tranSport costs. -248- BIBLIOGRAPHY Articles Abaelu, J. N. "Costs and Returns to Private Commercial Egg Producers in the Ibadan Area: A Pilot Investigation”, Bulletin of Rural Economics and Sociology. 1964, Volume 1, Number 1, pages 75-86. Clark, P.E. ”Planning for a Country in Transition - Nigeria", Hagen, E.E. (Editor) Planning Economic Deve10pment. Cambridge: Massachusetts Institute Of Technology, Irwin, 1963. Harris, J.R. "Entrepre nurial Patterns in the Nigerian Saw Milling Industry", Nigerian Journal of Economic and Social Studies. March, 1966. Hoselitz, Bert F. ”The Deve10pment of African Enterprises", Jackson, E. F. (Editor), Economic Development in Africa. Oxford: Basil Blackwood, 1965. Modebe, A. N. , Limar, M. , Obioha, F. , "Some Observations on the Pattern of Egg Production in Southern Nigeria", T_h_e Nigerian Grower and Producer. 1963, Volume 2, Number 2, pages 20-31. Moore, F. J. "Deve10pment Planning in Eastern Nigeria", Journal Of Local Administration Overseas. July, 1964, Volume III, Sewell, M. H. ”The Production Of Broiler Poultry in Nigeria”, The Nigerian Grower and Producer. 1965, Volume 3, Number 3, pages 32-43. ' -249- Books Bascom, W.R. and Herskovits, M. J. (Editors) Continuity and Change in African Cultures. Chicago: University Of Chicago Press, 1962, 309 pages. Bradford, L.A. and Johnson, G. L. Farm Management Analysis. New York: John Wiley and Sons, Inc., 1953, 429 pages. Johnston, B. F. The Staple FOOd Economies of Western Tropical Africa. Stanford: Stanford University Press, 1958, 305 pages. Kilby, P. African Enterprise: The Nigerian Bread Industry, Stanford: The Hoover Institution on War, Revolution and Peace, Stanford University, 1965, Hoover Institution Studies, pages 112. Mukherjee, P. K. Economic Survgs in Under-developed Countries - A Study in Methodology. Bombay: Asia Publishing House, 1959, 257 pages. Singer, H.W. International Deve10pment: Growth and Change. New York: McGraw-Hill, 1964, 295 pages. Stepanek, J.E. , Managers for Small Industry. Glencoe: Free Press, 245 pages. Stolper, W.F. PlanningWithout Facts. Cambridge: Harvard University Press, 1966, 348 pages. Tinbergen, J. The Design of Deve10pment. Baltimore: John Hopkins University Press, 1958, 99 pages. Walinsky, L. J. The Planning and Execution of Economic Develggment. New York: McGraw-Hill, 1963, 248 pages. ~250- Public Documents Gr eat Britain Prest, A. and Stewart, I. The National Income of Nigeria: 1950-51. Great Britain: Colonial Office Press, 1953, Study 11. Nigeria Federation of Nigeria. Federal Office of Statistics Annual. Lagos: Federal Office Of Statistics, 1948-1965. Federation of Nigeria. Nigeria Trade Summary. Lagos: Federal Office of Statistics, 1950-1966. Eastern Nigeria. Eastern Nigeria Development Plan, 1962-63. Enugu: Government Printer, 1962. Eastern Nigeria. Ministry Of Agriculture, Livestock Files. Livestock 29 Poultry Conference and Reports. Livestock 23 Poultry Policy and General. Livestock 130 Speeches and Addresses. Livestock 124 Poultry Importation. Livestock 24 Feeding, Nutrition. Livestock 69 Feed Plant. Mann, W.S. , A Case Study Into the Structure and Pattern of Food Consumption by Farm Families in Eastern Nigeria. Enugu: Ministry Of Agriculture, 1963. (Mimeographed). Eastern Nigeria. Ministry Of Agriculture, Chief InSpector of Agriculture, Files. Chief InSpector of Agriculture 311 Deve10pment Plan 1962-68. Section on Poultry Project and Development. Enugu, (Mimeographed). United Nations Economic Commission for Africa: UNECA. United Nations Economic Commission for Africa. Outlines and Selected Indicators of African Deve10pment Plans. Addis Abeba: United Nations Economic Commission for Africa. -251- United Nations Economic Commission for Africa. Administration of Planninggin Nigeria. Addis Abeba: United Nations Meeting of Experts on Administrative Capacity of National Deve10pment Planning. Dumont, R. Le deve10pment agicole enAfrique, Addis Abeba: United Nations Economic Commission for Africa, 1965. Food and Agriculture Organization: FAO Halbrook, E. 'Poultrl Feeding in TrOpical and Sub- TrOpical Countries. Rome: Food and Agriculture Organization of the United Nations, Agricultural Deve10pment Paper, NO. 82, 1962. Henningsen, H. F. Eggs and Poultry Marketing in Northern Nigeria. Kano: Food and Agriculture Organization of the United Nations, August 1966, restricted draft, 35 pages. Food and Agriculture Organization Of the United Nations. Agricultural Deve10pment in Nigeria 1964—1980. Rome: Food and Agriculture Organization of the United Nations, January, 1965. United States Agency for International Development Christensen, R.P. Efficient Use Of Food Resources in the United States. Lagos: United States Agency for International Deve10pment, 1948. Files, unpublished. Davis, C. L. Finding and Recommendations for the Fashola Research and Production Centre, Fashola, Western Nigeria. Lagos: United States Agency for International Development, September 24, 1965, Files, unpublished. Davis, C. L. First Terminal Report. Lagos: United States Agency for International Development, 1962, Files, unpublished. Davis, C. L. Second Terminal Report. Lagos: United States Agency for International Development, 1964, Files, unpublished. Halverson, J. H. The Present Nutritional Situation and Nigeria. Lagos: United States Agency for International Deve10pment, 1961, Files, 13 pages, unpublished. tables, maps (mimeographed). ' . o o o v I 1 u . ' V \ V o o ' o a . * . c . u . . '. . . ., u . . . I .- .- | 0 t - - l o . . 'o v u r n . . . I ’ . : I -252- Siccard.i,F. J. Report on the Diagnosis, Implications and Suggested Course Of Action for Foul Typhoid and CRD at Abakaliki. Lagos: United States Agency for International Development, February 1965, Files, unpublished. United States Agency for International Deve10pment. Poultry: Fiscal Year 1964-65. Lagos: United States Agency for International Deve10pment, 1965, Files, unpublished. Other United States Government Documents Heywang, B. W. Poultry Management in a Sub-TrOpical Semi-Arid ‘ Climate. Washington, D. C.: United States Department of Agriculture, Production Research Report Number 5, 1962. U. S. Department of Health, Education and Welfare. Republic of Nigeria: Nutrition Survey, February-April 1965. Bethseda, Maryland: National Institute of Health, Nutrition Section, Office of International Research, March 1967. Other Letter from Charles L. Davis to Martin H. Billings, November 2, 1966. Davis, C. L. “Improved Poultry Production Leads to a Better African Diet”, Speech delivered at the University College of Ibadan on September 18, 1962. Geiger, T. and Armstrong, W. The Development of African Private Enterprise. Washington, D. C. : National Planning Association, Planning Pamphlet 120, March 1964, 157 pages. -253- Papers Johnson, G. L. A Strategy for Rural Deve10pment in Nigeria. Consortium for the Study of Nigerian Rural Deve10pment. Working Paper, Projects 3 and 4, 1966. Johnson, G. L. Factor Markets and the Problem Of Economic Development. Consortium for the Study of Nigerian Rural Deve10pment. Report for the Consortium, 1966. Mellor, J. W. The Crucial Role of Science and ChangnLTechnol%y in Agricultural Development. Paper presented at Inventory Conference on Science and Society in South Asia. New 'York: Rockefeller University, May 2-4, 1966. Schickele, R. Farm Management Research for PlanningAgricultural Deve10pment. New York: Agricultural Deve10pment Council, December 1966. Schultz, T.W. Increasing World Food Supplies: The Economic RegLuirements. Washington, D. C. : Proceedings Of the National Academy of Science, August 1966, Volume 56, Number 2, pages 322-327. Smith, V.E. The Livestock-Human Nutrition Balance in Nigeria. Consortium for the Study Of Nigerian Rural Deve10pment. Tentative Report, December 6, 1966. Smith, V. E. Constructing the Nutritional Model. Consortium for the Study of Nigerian Rural Deve10pment, December 6, 1966. Tentative Report. East Lansing: Michigan State University Consortium for the Study of Nigerian Rural Deve10pment -254- A PPE NDIX A OUTLAYS INCURRED OF THE GOVERNMENT OF EASTERN NIGERIA ON BEHALF OF THE POULTRY SCHEME An estimate of the cumulative cost of the poultry scheme is difficult to reconstruct and is in fact probably unknown even to planners. The difficulty derives mainly from the diSpersion of the scheme among several projects that appear in the 1962-68 Deve10pment Plan. NO central plan or budget exists entitled 'the poultry scheme', rather the scheme is scattered across six titles each with a budget, all of, or portions of each, having contributed to the establishment of the scheme (Table A-l). The development plan outlines in a general fashion the 'votes' or allocations earmarked for the projects and lumps these into two figures: capital outlay and recurrent outlays, which summed represent the total anticipated cost of a project over the planning term. Capital outlays include the capital equipment for the hatchery, feed mill, etc. Recurrent costs are the estimated Operating or servicing outlays that must be paid over the term of the plan. Wages, petrol, all variable factors of production, fall under this category. Government policy calls for users tO pay for recurrent costs, while it covers the fixed costs. In practice, however, government had had less than complete success in deciding exactly what price to charge users for services. moumo 0m0n2 .mOINomL .2202n2 2C0En2q20>00 02.20m272 22.200.00m2 00: 20.20.22 22022028200 000.0 .2 000.0 a 000.2 .2 208.2. 000 000 002 032.500 0.350882 2.0 000 000 00 2222 080 208200. 00 . 00 00 00 20228 02.20 000.5 $8on 00 5 a 000 2.20 00 0.2800 0.02022 02 - I 000 000 00. 822300 020809222 02 000 .0 .0 000 .2 .0 220 .2 .0 0.2822800. - 0525282 02 02.20.206.202 .. 922020.28 22020220uxm2 2802. 05.2.3032 2022000 0202.2. .02 30.8.2.2 200-000: 000 32 a2 002000 2.202n2 022022222020>0Q 220200372 22.20200H 02.22 222 0.5225222 O2 20000290 0200.00.32 2.. .02. 020208 -256- Since the prices charged have varied, the effect makes an estimation of final net cost to government for the establishment of the poultry scheme quite complex. This difficult situation is made still more slippery since only a portion Of several projects have contributed to the poultry scheme. The projects comprising the poultry scheme, in whole or part are as follows: Project Number 12: Extension Training Program including Veterinary This project seeks to train 2, 500 extension workers over the planning period. In practice the extension service contributes a very modest prOportion of their efforts on behalf Of poultry rearing, perhaps 10 percent or L 326, 000 over the term. Project Number 12: Livestock Extension The objective of this project is to turn out large numbers of inoculators to service the veterinary program. As poultry is the major livestock of the region it is possible to assign some 80 percent of this vote to the poultry scheme or L 192, 000 over the term. Prgject Number 19: Regional PoultrLCenter The center piece of the poultry project, all of the capital outlay for this activity may be changed to the scheme. For the net cost Of recurrent charges, a more complex matter arises. Brundage studied the Abakaliki unit in 1964 and reports that revenues covered no more -257- than half of the recurrent costs incurred in the center's activities. Thus all capital outlays and 50 percent of the recurrent charges are charged to the poultry scheme - a total of L 173, 000. Project Number 20: Brooder Units The brooder project was drOpped after a year when it became evident that it would be impossible, given existing practices by poultrymen. The expected outlays for this project, therefore, have not been made. However, most of the initial capital outlays were spent and brooder units were established in most of the planned sites. Clear cut figures are not available but it would seem safe to debit the entire project, for financial year 1962-63 to the cost column of the poultry scheme, or L 90, 000. Project Number 22: Animal Feed Mill As part of the expanded livestock program it was expected to set up a mill to provide 4000 tons Of animal feed annually. The plan stated that the recurrent cost of its Operation would be eventually met from revenue, while manufacturing overhead would be borne by the region as a subsidy. A rather jerry-built feed mill was constructed as a stOp- gap in anticipation of the eventual arrival of a modern mill. The outlay assigned to the feed mill in the deve10pment plan assumes the acquisition of a new mill in 1968 from the United Kingdom costing some L 50, 000 to purchase and establish. A Ministry Spokesman reports that a firm -258- order has been placed with Simon Barron in United Kingdom, for the purchase, installation and commissioning of a mill with a capacity of four tons per hour. In 1964 Brundage examined the costs of production of Operation Of the present mill. He found that it costs L 38 to produce one long ton Of layer ration. Brundage also found that loss through storage was the second highest item of cost - now being remedied with the construction Of silos at the mill site. When Brundage did his study, MOA sold at 4 d. (5¢) per pound, but the price has since been reduced to 3/2 d. per pound. At the former price Brundage found that the MOA was nearly breaking even, losing only L 5/1/5 per month. Udosen estimates that at the new price the MOA may be losing over a L 1000 a month. As the cost of maize has risen this gap must become correSpondingly greater. Once again expectation with regards tO the ability to recover current variable costs from current revenue has fallen short of practice, adding tO the total cost Of the poultry scheme. It seems tOO fair to charge all capital outlays and 50 percent of the recurrent charges to the poultry scheme, a total of L485, 000. Project Number 24: Veterinary Services Under this title lies the largest single money outlay actually made by the regional government for the poultry scheme - namely free veterinary services, vaccines, interns, services and support. As poultry is the largest user of the inoculations and veterinary time, it seems reasonable to assign 80 percent of the total outlay to the project, or L 364, 800. -259- Some new costs have been assumed by the government in 1966-67 which are the direct effects of the political disturbances of the period. The vaccines formerly produced at the Federal Research Station at Vom, Northern Nigeria, are now to be produced at a new center being established at Enugu. This will represent a new charge, some part of which must be debited to the poultry project. Further, the new maize planting and silo programs will add tO the debit side as well. -260- APPENDIX B 1/ THE MAIZE PR OBLEM ”R ain is the Husband of the Earth” Talmud 1. Intr oduc tion The supply of maize to feed mills in sufficient quantities may become the Achilles heel Of the commercial egg industry. This problem is likely to grow more acute for three reasons: (1) The increasing numbers of hens on litter in the region (nearly 400, 000 by 1963;); (2) The increasing difficulty in Obtaining maize from Nigerian sources outside the region; and (3) The lack of success in developing sufficient maize production from within the region. The first two points have been covered in the text. This appendix will focus its attention upon the particular problems encountered in attempting to deve10p an impor t- substituting maize industry in Eastern Nigeria. Although the MOA has _1_/ I am indebted for much of the material in this section to A. S. Oruche, who as a member of the staff of the Poultry Project travelled widely in the region to collect it. Also R. Tolar and C. E. Okeke of the MOA - feed grain section have provided information. Some data was afforded by the Poultry WorkshOp Nsukka - August 1966. 2/ An estimate by the author in a report to Arthur P. Little, Inc. in reSponse to an inquiry from them, March 1, 1967, Appendix H. -26l- been attempting to induce greater local production Since 1963-64 the problem has become acute following the embargo Of all goods coming from Northern Nigeria (August 1, 1966) - the source of virtually all of Nigeria's maize. The magnitude Of the problem is put in relief when it is realized that so far only 17 percent of Eastern Nigeria's annual needs (5, 000 tons in 1966) have been met from purely Eastern production. 2. Background to the Present Maize Crisis Producers of maize in the northern middle belt have hitherto been able to meet the increased demand for maize from all Southern Nigeria without any governmental program. Evidently the production - marketing situation has been efficient enough and producers alert enough to grow maize as it appeared to their economic advantage to do so. However, in 1965 - the rate of increase in demand for feed by the expanding layer flocks in both Eastern and Western Nigeria began to outstrip plantings. By 1965-66, before the political disturbances, maize became very scarce. Millers attributed this scarcity to the following factors: 1. The great increase in demand for poultry feeds not accompanied by increased plantings of yellow maize. 2. A shortage of maize seed (NS-1). -262- 3. Inclement climatic conditions over the whole of Nigeria, eSpecially poor rainfall distribution, leading to a very small crOp. 4. Shortages Of human food led to extension of plantings for root crOps to the detriment of livestock feeds. 5. Inadequate storage facilities for the amount actually harvested. 6. A high moisture content in the kernels further reduced the amount of maize that could actually be used in rations. All these factors acted to cause shortages which led to a 1966 rise in maize prices. But some of these factors represent fundamental problems which are likely to persist to affect feed costs for years to come. The strongly autar chic note found in the Eastern Region since the beginning of a separate regional development was reflected in its determination tO produce maize in the region. Since 1963 it has annually distributed seed to farmers in areas which seemed suitable to maize cultivation (Table B-1) but the results have not been encouraging. Now, with the region cut-Off from the rest Of the country, the maize production program must be successfully completed if a commercial egg industry is to be supported. Consequently the reasons for the failture to date to Obtain the hOped for production in the Eastern Region must be examined. Ill mm @2002 mm om mom; 2 3 2m om 200002 6 2 .. 022072 02 0.002 2 0m Emsom 002022 02.208 00225230202 2000m 02.208 .2008 2208 .20n2 2020n2 002.2% 20220 2202202200522 5020220223029 2000w 22.000 21m 020208 -264- 3. The Section Of Strain and its Characteristics Maize, white and yellow, has been grown in Eastern Nigeria for many years. The present strain favored as a feed - NS-l - was introduced in 1954 from Trinidad (British West Indies). The variety was accepted for distribution to farmers because of its high yield under varying environments (in rich soil the yield is up to one ton Of dry grain per acre). Additionally the variety manifests resistance to rust, has good storing qualities, and a high (75 percent) cob/grain ratio. The kernels harden on maturity which help increase their resistance to weevils. Also high carotene content enriches the vitamin A content of eggs and increases the yellow tint of the yolk (desirable to consumers). 4. Technical Problems Of Growing NS-l Maize, a minor crOp to farmers, is usually inter-dropped with yams, cassava, okra and cocoa yam. The practice Of inter-cropping does not permit early planting of the maize causing it to be grown under less than Optimal conditions. Organic manure is rarely applied to the crop. The soil of Eastern Nigeria is highly acidic (PH of 4. 5 or less); under heavy rainfall it is subject to severe erosion, leaching Of bases and fixing of phOSphates occurs. These factors limit the average yield in the region to 700-1000 pounds of dry grain per acre, a level far below the world average of 1440 pounds. -265- Acidity also limits the levels of production. The poor yield caused by the low nutritive content associated with high levels Of acidity, is aggravated by the fact that little or no lime is used by farmers in maize cultivation. Of farmers interviewed, few used fertilizer and none admitted using commercial lime. The reasons given by others for not using either or both on their maize plots were: (1) Their non-availability; (2) lack of knowledge Of application and dosage; (3) failure to see the benefit from the use of lime and fertilizer; and (4) inability to pay for their purchase. Failure to use nutrients accounts in large part for the low maize yield in the poor sandy soil of the region. Other factors act as well to limit the productivity of maize. Farmers are Often ignorant of fungicides and insecticides that are available to them. Once their crOps are infected, farmers attempt to sell-off the maize as quickly as possible, effectively removing the entire crop from the feed grain market. Some farmers apparently believe that NS-l uses an inordinate amount Of soil nutrients, adversely affecting other crOps. The rapid growth of the plant appears to bear this out as farmers feel that such performance is somehow unnatural. The tall and luxuriant growth of the grown plant worries farmers too. They think that it can easily lodge and that it has the tendency to bend over and cover other inter- crOpped plants shielding them from sunlight. This tendency to bend -266- is brought about by the practice of planting the maize at the base of the yarn mound or planting it in too shallow troughs on flat ground. Here it is also subject to damage from erosion. One good quality of NS-l is early and high percentage germination, but this very quality is a factor causing farmers to reject it. When farmers interplant, they sow NS-l and other food crops in at the same time. However, NS-l germinates before these crOps do. The plant presents broad green leaves, which attract hungry birds and rodents, being the first young plants Of the growing season (alternative foods are still brown and dry after the long dry season). Pests Often devour the leaves and up-root the young seedlings. Hence the early germinating maize becomes the first food of the season sustaining great damage on this account. To offset this problem farmers plant maize in plots nearer home which typically are much smaller - once again imposing a constraint on final total product. 5. Cultural Factors which Inhibit Maize Production The economic organization of local agriculture has an effect on levels Of maize production. The custom exists that maize cultivation should be left to women, along with melon, Okra and sometimes cassava. The man clears the bush and makes the mounds. He also plants and tends the prestige crops - such as yam. Women supply labor to the tending Operation for which input they are compensated with the rights . v co 1 . . _. IO. ‘ . .. . . . . ‘.' ‘ C ‘ . _ . .. . n . v a .7 .0 ,. . ., . . I o n ' o . . . . . 1 -267- to minor crOpS. To be sure that the women have an adequate amount of available time to attend prestige crOps the man restricts the amount of minor crOp acreage planted. Further, men do not wish their wives to be too successful in their independent income ventures so they also restrict the area given to minor crops so as to moderate the women's income possibilities. For these reasons maize cultivation is suSpended between the horns of the classic dilemma - custom does not allow men to cultivate maize, and it limits the amount the women can grow. In a farming community certain areas are selected each year for cultivation and every farmer within that community is bound to plant his crop within the selected area. This practice places a constraint upon maize producers in that it mixes NS-l with other maize varieties. Under such circumstances the NS-l is affected by pollination from those types which have a depressing effect on both yield and quality Of the variety. If a farmer wishes to raise good NS- 1, he should separate it from other varieties or vice versa but this action can bring him into conflict with other members Of the farming community. Friction Of this sort can induce a farm er not to introduce NS-l as a Separate crOp and cause him to discontinue it. 6. The Extension Service The extension service has been the intermediary and change agent acting for the MOA at the farm level. The role of extension agents has ' -268- been both to encourage the introduction of NS-l crOpping and to supply the necessary seed. Extension agents have attempted to persuade farmers to use the variety with several arguments: (1) a new source of income; (2) a new source Of food; and (3) the great need for the crop by the poultry industry. However, the reasons given by farmers for cultivating maize are strikingly different. Farmers said they grew it: (1) in obedience to government order; (2) because seeds were supplied free; and (3) to supplement other food crOps. It does not appear that farmers are aware the crOp is being grown primarily as a livestock feed for which they will be paid. Neither do they seem to be aware that the NS-l is Offered because of its superior yield characteristics. Some new insights into this matter were Obtained from research done by the Diffusion Of Innovations project field staff working in Eastern Nigeria. They report that farmers interviewed in Owerrir province are apparently unaware that the Special maize strain - NS-l was not intended for human consumption. Rather they treated it as a human staple either eating the government provided seeds or the final crop. When cooked it was found to be tough and unpalatable. Being clearly unfit for human consumption they declined to plant it again. The staff of both the poultry and Diffusion project found these beliefs and attitudes quite wideSpread. Enumerators asked farmers what crOps - activities and practices extension staff personnel have -2.69- stressed. ReSponses indicate that the service has emphasized ten items: tree crop rehabilitation, fertilizer, poultry rearing, etc. - maize ranking third from the bottom. This lack of emphasis is eSpecially trenchant when it is recalled that the extension service is virtually the only media generally reaching the farmer with regard to agricultural practices. 7. Economic Factors Affecting Maize Production This general lack Of public understanding Of the maize program and the associated paucity of reSponse does not reflect an absence of tangible stimuli offered by the MOA. The MOA has provided increaing amounts of free seed each year since 1963, and a guaranteed price purchase program has been followed. Farmers have not made Optimum use of this seed from the point Of view Of the MOA. Farmers who have accepted NS-l maize as a cash crOp find it hard to grow all they want because insufficient amounts of seed are provided to them. Sometimes they supplement the MOA seed with that Of regular maize to get a full crop. The lack Of seed reflects the way in which the MOA distributes seed. Each district is sent a certain amount.. If, in one district, demand for the seed exhausts its allotment, seed is not diverted to this area from districts where there has been insufficient demand, although few‘ areas have experienced such a positive reSponse. -270- The time of maize planting varies in different areas. The distri- bution Of seed often does not conform to the required planting time in a particular area - which fact likely discourages both the entry Of new producers and the size of Operation of present producers. The prices paid by the MOA were designed to be competitive with other food crOps. The prices paid by the MOA per ton (Table B-2) at government collection points, usually the extension agents Office, have ranged upward from L 20 per ton to as high as L 50. The average price paid, however, has remained below L 30. The same price is paid all over Eastern Nigeria for NS-l. The price has been established by adding 10 percent to whatever the market price is for non—NS-l maize. Only dry, shelled maize Of 14 percent moisture content is bought at the collecting station. Farmers have not rushed into maize production since 1966, because rapidly rising food prices have made food production for human consumption more profitable. Farmers report that, aside from melon, maize earns the least of all food crOps. Only at farm settlements do farmers state that the price paid by the MOA is equivalent to food prices, but this seems to reflect the practice of the settlement COOpS to pay lower prices for food crops. A further factor tending to depress the incentive value Of the MOA price is the practice of taking the maize from the farmer on credit - cash -271- .0032: - :80 3 030.230 502.0 0.20.2000.2 222202 200.02 <02 "0 20222023 .200 m022002002v om 0022 - 000 00 000 - 000 00 12. 002-0022 :08 n0n2 002.202 20020002 0.0.02.2 02: 0002 002022 HOW 0.2080002 00. 020% 0002.2nm N 1m 022208 -272- coming somewhat later. White maize, produced for human use can be sold directly for cash. TranSport difficulties exist in moving NS-l from farm to the collection points. Farmers are required to carry the harvested maize to the extension agent's house where the sale is made. This movement can be costly, difficult and time consuming. Farmers bring their maize by bicycle, canoe or head portage. Seldom do they have enough to pay for their hire of a truck. If the farmer cannot obtain use Of a Sheller the problem of movement is multiplied that 'much more. The question of storage has been difficult but is improving. In Eastern Nigeria farmers harvest NS-l from June to August. The actual time selected is related to the period Of great rainfall and farm activity. When working with coco-yam, rice and other minor crOps they have little time to handle drying of maize. The custom is to send wet and fresh maize to the extension agent who rejects it because Of its high moisture content. Such a refusal discourages farmers from planting it again. Premature harvest and improved storage practices take a serious toll Of what maize production there is. Prematurely harvested maize is SO moist as to severely limit storability. Also weevils find such maize more succulent. The MOA is building modern granaries in areas of likely maize production: Ikom, Abakaliki, Ugep, Afikpo and Boki with a combined . 0 , , Q . I . . , _ . , -O . , 0 0 . v . . ~ ' .. I l ' . o . 0 . . . > . . , . ‘ . - , . ' ' . ‘ . - ‘ 0 . . . - . a . ‘ . ' . . . ‘ . . c . ‘ , . . _ . . c . , V . ‘ , . . . - , ‘ ' ' c Q . - , 0 0 - . . . - , . , . . ‘ . , - . : _ . . ' . . o ' u , ' 9 - g ' l g D . . - . . . t . ’ , , ' . . I i ' , , . . . _ , . . . . . , , , u o : , ' ‘ .' a -273- capacity of 900 tons. Six others are proposed. A final and a most serious factor likely to retard any substantial increase in maize production is the competition for land with other crOps used directly as human food. NS-l is rarely used in preparing local staples. Discussions with farmers and extension persons revealed considerable resistance, in principle, to the substitution of maize for staple foods, even were prices to indicate this to be a rational action. 8. Summary In the face of expected difficulties in Obtaining maize, the regional government is pushing ahead with a very ambitious hatchery program. By 1968, if the present rates Of chick production continue unabated there will be in excess of 300, 000 chickens of all ages to support which will consume nearly 8, 000 short tons of maize annually. If the maize is to be domestically produced, the order of priorities in the minds of extension personnel will have to be restructured, and adequate seed made available when and where it is needed. In the short-run, the farm settlements of Boki and Erei may be able to contribute considerable output. For the longer-run it seems clear, that methods of payment, collection and channels Of market information will have to be reevaluated. Prices offered for the maize may have to be set so as to Offer real incentives to farmers to produce them and such prices will raise the real costs of this input for the poultry industry. Also the technology -274- of harvesting and drying needs to be better understood among the farmers. An alternative to domestic production would be importation; if neither domestic production nor intra—Nigerian movements are forth- coming, sufficient imports will remain the only possible source. Of course, such action will claim a share of the region's foreign exchange. -275- APPENDIX C ENTREPRENEURSHIP IN THE HATCHERY SEGMENT OF THE EGG INDUSTRY The importance of a commercial background may be a factor in explaining the pre-eminence of the Onitsha -Ibos in the poultry business. Peo ple from the Onitsha district have played a leading role in the deve10pment Of both the production and hatchery segments of the egg industry. Of 13 reSpondents in Abakaliki province nine came from Onitsha. Onitsha persons were prominent in Enugu, Port Harcourt and Umuahia provinces. The importance of being from Onitsha is underscored by the experience of hatchery entrepreneurs, which is the other Segment where Nigeria private investors have been very active. Being larger investments, and somewhat more risky ventures, they warrant a closer look. Many similarities exist amongst the three Nigerian- owned hatcheries: Lincolndale, PAC and Chukwurah, both as regards their origins and problems. Lincolndale, the largest, is owned by P. C. Odeluga, who entered the business when it became evident that the MOA was unable tO meet the demand for day-old chicks. He has a B.A. from Lincoln University (hence Lincolndale) and an M.A. (Economics) from . . l ' O . - , u o I ' t . _. I . .~ 0 ~ . . . r - , . . 2, . _ 0 . , . . o v ' . O D ‘ \v . . . . , v . - . . . . . , ‘ . . . . n . O . » i . .n . . . . I . . ~ I ‘ v ' . . u . ' . u . . .. u . O . ~ I 0 . . . . n . . u I - ‘ \ i A l 6 a ' . u ' ' . . I . ~ 1 , . . ~ v ' ‘ . , , , 0 ' ' . . , n v - ' ,. ‘ I . . . ‘ . u ' v v . ~ . , . . u v . . . ‘ . u I u . . - -276- New York University. Although initially a public school teacher, and sometime politician, he entered entrepreneurial activities in 1959 when he opened a night-Spot and 'hotel' in Onitsha. Subsequently, after a year as a commercial poultryman he invested in a hatchery, having learned hatchery technology from a book. He has at present two incubators - one Of 10, 000 capacity in Onitsha and a second Of 5000 capacity at Aba. The firm has been financed out of his own funds. Odeluga has deve10ped his market outlet in a vigorous and straight- forward manner. Large bulletin boards were erected around Onitsha and Aba on which American-style aggressive promotional COpy was presented. Handbills were also used. He has been able to capture and so far hold a small wedge of the market - about 14. 5 percent (July 1966). Doubtless the difficulties at Abakaliki have helped him both establish the firm and maintain his position. Odeluga does foresee difficulties as the MOA begins to Offer sexed chicks. In addition to the hatchery Odeluga is President of the Poultry COOperative Association to be discussed under the markeing sub- title. In this position he stands as the principal spokesman for producers, and by virtue of the position will become an important figure on the Board of the Cooperative Egg Marketing Scheme which -277- is scheduled to be taken over by the poultry association in April 1967. The two smaller hatcheries are PAC Ltd. , and Chukwurah, both of Onitsha, date from 1964. The owners of both firms have been traders of considerable experience in the Onitsha market (largest in West Africa). PAC (Poultry-Agriculture Company) is unique among the firms studied in that it is a purely Nigerian joint stock company comprising three traders who worked together for ten years before forming the firm in 1961. They have used capital accumulated in their trading Operations to finance several ventures: oil palm and pineapple plantations, commercial eggs, and the small hatchery. The firm has an incubator Of 10, 000 egg capacity (costing L 1400) which is located in a rented building. The partners are now talking of making a franchise agreement with a United Kingdom firm to provide foundation stock for their line. At present, part Of their business is producing hatching eggs for Lincolndale. PAC has a slender sliver Of the market, two to three per cent, partially explained perhaps by the feeble promotional efforts made by the firm: circulars and an occasional advertisement in the neWSpapers. But only one-sixth of the firm's assets are tied up in the hatchery enterprise. The third is Chukwurah, founded and owned by a former trader in shoes in the Onitsha market. The savings from thirteen years of trading was invested in his poultry hobby to transform it into his main source of livelihood. Although Chukwurah has only six years Of formal -278- education, he is one Of the more knowledgeable poultry men and possesses one of the few extensive libraries on the subject among persons interviewed for this study. He is aware, for example of the genetic shortcomings Of his inbred stock (or is at least the only one to acknowledge it) which recognition has led him to an active sear ch for an expatriate partner on the model of Ejinaka 8: Thornber, Ltd, At the time of this writing, Chukwurah felt that such an arrangement was very likely tO come to fruition. Together these two hatcheries have less than 10 percent of the market. These three firms share several factors in common. Importantly and perhaps significantly, all three groups Of entrepreneurs Sprang from trading backgrounds, a trait which persists with husbandrymen as well. All acknowledged a considerable knowledge Of business record-keeping, to an understanding of the implications of risk taking as this relates to their segment of the industry, and to the problems of capitalization, depreciation and inventory. Interestingly, all three Of these firms have appeared in Onitsha, the earliest town in the region to develop an educational system. Further, it has been and remains the trading center Of the east as well as a focal point for regional politics, business and communication. -279- APPENDIX D ME TH ODOL OGY The field research to gather the primary data used in this study was conducted in three parts over a six month period in 1966. The first part - Phase I examined the poultrymen themselves and developed the information necessary to select farms for Phase II. Phase I was carried out in July 1966. Phase II was continued over a five-month period from August 1, 1966 to December 31, 1966. During this part of the study the production records were kept which provided the cost of production data used in Chapters 5 and 6. The III and final phase, the consumer survey, was done in the last two weeks of December 1966. The organization, sample frame and methodology followed in each Of these three phases are developed in detail below. Phase I Phase I sought by use Of a questionnaire to develop background data on poultrymen presently in production in Eastern Nigeria. TO deve10p a pOpulation from which to draw a sample the vaccination records Of all the veterinary offices in eight provinces Of the region were examined in March 1966.. The names of all persons who had had 100 or more chicks vaccinated in the past 12 months (Since March 1965) were taken. -280- The veterinary records yielded 348 names Of farmers possessing 100 chickens or more in the eight provinces to be studied, out of which a one-third sample (of 116 sample units) was taken. To be sure to get producers of all scales of Operation the sample was divided into six strata (see Table l-l). A third of each stratum was selected for the sample by simple random sampling. Only four very large flocks (of 4000 or more) were found, and all were included in the sample to build a total sample of 120 units. In actual enumeration it was discovered that the pOpulation developed from the veterinarian records was somewhat overstated. Enumerators discovered several instances of double listing by veterinary clerks. Some fifteen of the 120 farm sites were eliminated in this way. In addition, provision had to be made for poultry farms presently out Of business and for those whose level Of activity had either drOpped to below the 100 hen Size or had been miS-stated on the veterinary records. The following replacement rules were adOpted for these cases. 1. Where a person had had 100 or more birds but now had either a reduced flock or none - the interview was carried out. 2. Where the reSpondent had never had a 100 or more birds - the unit was dropped without replacement. -281- (The latter practice was adopted under the assumption that the erroenous inclusion had inflated the original pOpulation by one unit and that to use a replacement would accordingly swell the sample beyond one-third size of the estimated pOpulation.) 3. Where a person on the sample list was unavailable for any reason for interview, and no suitable proxy for him could be found (wife, senior son, brother) an alternative unit was provided. If the alternative could not be found the unit was dropped from the sample. As a result of these deflating factors the actual sample taken of poultry farms was 100 units. The MOA took a census of poultry farms in November 1966. They counted 316 sites, a third of which would be 105, not significantly different from our figure. The findings Of Phase I provided the basis on which to draw the farms used in Phase 11. Phase II The Object Of this phase was to develop production efficiency figures for different poultry Operations of different scales of activity and using different types Of layers. In addition, it was hOped that figures on the best third of the producers as well as the typical producer could be deve10ped. Two limitations affected the method of study: (1) the period under study was an abnormal year for two reasons. illllvif‘I-I‘Illil ~282- Fir st, considerable feed scarcity existed during the summer Of 1966 which at first was thought to be a serious influence on the findings. Fortunately, this crisis was largely over by the time the records were introduced. Second, due to depopulation and consequent cession Of production of day-Old chicks at Abakaliki, few MOA-RIR flocks could be found in the mid-period of their laying lives. The average age of MOA layers at the time of the study was quite high, about 60 weeks; and (2) in planning and initiating this project we had to decide whether a large number of farms should be covered with little supervision or a few with much greater supervision? It was unknown at the time just how reSponsive and responsible the staffs of the farms would be in keeping the day- tO—day records. Farms were often awkwardly located with regard to tranSport. Enumerators Often had to spend a day just visiting a single Site. Having only a staff Of Six, it was judged that the more limited study would be the less risky, so that one enumerator could efficiently handle about five farms if he were to visit each twice a week. On 'the Phase I questionnaire reSpondents were asked whether they would be willing to participate in a five-month study. Almost all said yes, the nays principally deriving from the largest Operators. Two further conditioning factors had to be considered before selecting the target farms. -283- At least three types of chickens were discovered to exist on local farms: MOA-RIR, Thornber 404 hybrid, and other RIR. In addition a handful of WL, Harco, Hyline and "mixed" flocks were found to exist, but not in sufficient quantities to permit or encourage a separate study Of their individual performances. Together the MOA- RIR and 404's comprised in July 1966 about 50 percent of the total flocks. Other RIR 's comprised a further 22 percent, but these birds were so often of mixed antecedents as to render impossible any meaningful comparative breed performance study on them. The other types Of birds were included in the final performance figures under the rubric of 'typical performance'. Chickens, as living creatures, perform differently at different phases in their lives. Rates of egg production and efficiency with which they convert feed tO eggs are functions of age and these characteristics vary between different kinds Of chickens. Ideally records ought tO be kept over the entire life Of the flock from day- old to the eightieth week when it reaches the end Of its productive life and is liquidated. However, only five months were at the diSposal of the study. To Offset this limitation, synthetic flock histories had to be developed. The questionnaire in Phase I had provided hatch dates, breed, flock size on all studied farms. Farms were divided up into three stratum based on their total number of birds on litter. These stratum were: (1) less than 301; -284- (2) 301-900; and (3) 901 plus. Within each of these groups flocks were selected Of different breeds, subject to their hatch date. The Object was to gather for each stratum flocks of each type and age so that at the end of five months production information would be available on each breed over its entire life. The assumption was, of course, made that all the birds in a breed would perform identically so that variations in their performance could be assigned to the managerial variable. Further tests could determine whether management had fallen down on housing, health, culling, watering, feeding or vice control. The cessation of production at Abakaliki and the relative newness Of the Thornber Operation made it impossible to get enough flock histories from these breeds in each scale Of activity. However, sufficient data was developed to put together synthetic typical histories of these birds. A synthetic flock history was assembled in the following way. 1. All hatch dates were gathered on a per breed basis. 2. The present age of the flock was noted, that being the date at the estimated time Of the start Of the farm record. 3. The age at the end of the five month record, or 80 weeks Of age, whichever came first. 4. All records were kept on a per flock basis, all the birds in the flock being of identical age and breed. -285- Flocks begin to lay at about 22 weeks of age, and continue for some 58 weeks. SO far as possible flocks were selected so that some were represented on the study for every week of this laying life, so that the five months available overlapped to provide a continuous record of the breed's performance for the entire production period. Performance figures: feed-egg conversion, percentage production, livability, eggs per hen housed, and eggs per hen per week could be assembled against the independent variable - time. A diSpersion Of the different performance figures would thus be generated per breed over time, which diSper sion could be subjected to simple linear regression analysis, the final Y representing the 'typical' performance figure. A straightline is a less than perfect description of hen's performance over time, which actually more resembles a skewed arc (Figure 5-1); consequently poor fits were obtained. Extreme Observations were dropped and the figures representing the early production period igrnoed as these give an entirely unrealistic picture of life-long performance. For example in 22 weeks a hen may eat 1. 8 pounds of feed and lay one egg. Records had to be developed that would allow standard performance figures tO be generated - yet be sufficiently simple that semi-literate staff could manage them at the farm site. To meet this need, model records were Obtained from the North-Eastern Poultry Producers -286- Council (NEPPCO) and adapted to the needs Of the study and requirements Of Nigerian conditions. The NEPPCO records possess two distinct characteristics that recommended them for this work: (1) they provide a standard method for keeping records SO that they are comparable between breeds on a like basis; and (2) the record-keeping forms are set-up so they yield directly the performance criteria noted above. The records are kept on a 28-day basis (4 weeks) providing a standard period unaffected by the irrationalities Of the Gregorian calendar. There are 80 weeks in the chicken's life, divided into 20 periods of which 15 are productive. By setting an upper limit of five farms per worker the staff of five was able to handle 25 farms. These farms were selected within their stratum by simple random sampling. In fact 28 farms were drawn, the excess being used as contingency farms on the assumption that some farms would refuse to COOperate or drOp out during the course Of the study when it would be too late to start new ones. One large farm in Abakaliki rejected participation after first agreeing to cooperate. A second farm in Umuahia went out of business after the first month. A third sold-Off its single flock of growers in the second month to concentrate upon a hatchery enterprise and two others lost interest in the project after three months. These two farms kept records but Spoiled them with indifference and by mixing the studied _—2 2 <-2.._ 2..—‘ -287- 2cm .. 000-200” 00.0. n mN 2. 0 0 20208 2. 2 2 N 02220229222 m 2 2 2 272000.203 2.20% m N .2. 2 2.2.2030 20 2 N 2 022022220 2. 2 2 0 002.02 m 2 N N 202220020220. 20208 0m.20.2 2022 22002.6 00222020 .202 0223229.. 00 0280 22 00022222 2.22 00222>oun2 20220 0200m .222 082.2002 20 220220022fi0202 0N2 m o 02 0 ON on 20208 0 .. .0. 0 2 0 2. 9222 ON N N .2. N 2. 02 022202222222 2.2 N .2. N 2 m 0 2.5000022 2.20.02 2N 2 2 2 N m M2 2.2.2030 2.2 .2. 2 N 2 m 02 022022220 0 .2. 2 0 2 2 2. 500:0 2. .2. .2. .2. .2. 2 0 022022220. 202 .0 2 2 2 m w 2022200202200 20008 +ooo20 ooownooo2 ooo2u2cn o00u2om ooma2om oom..002 0002.20.32 2 00022222 I 20022270020 20 0002.206 00: 220 m222.200n2020 090022200002 20 22022022250202 2In2 020208 -288- flocks with alien fowl. These defections left the study with 23 farms. Two of these eventually damaged the records with a massive infusion of alien stock late in the study so that in fact only 21 farms with 33 flocks survived the study with usable record histories. The poultry attendants were trained in keeping the records and a staff member visited each farm twice a week for the first month and weekly thereafter. On visits the enumerators would collect the old record and give out the new. A separate set of records was kept for each studied flock. To measure quantities of feed fed, a standard bucket was given to each farm. The bucket held 12. 5 pounds of Pfizer feed and 16 pounds of MOA. The records indicated how many buckets were fed each day. They also indicated the number of eggs produced, by what number of hens, and further accounted for casualties among the flock due to death or culling. In the three stratum 16 flocks were studied in the smallest group; 14 in the second and eight in the largest. As an effect of simple random sampling only one farm turned up from each of the two provinces - Annang and Uyo. As these were very remote farms, and the provinces them- selves distant from the center of the study - these sites were replaced by farms in Owerri and Umuahia. Table A-3 shows the final distri- bution of farms in the six provinces. -289- The Selection and Training of Enumerators for Phase I and II The same enumerators were used for the first phase and part of the second. These were six (but later five) third year students from the University of Nigeria-Nsukka. All but one were majors in the agricultural economics department. Three had worked with Ans chel and Welsch in their field studies with the EDI in 1964. The criteria used for their selection was three-fold. First, experience or great interest in doing the work; second, being a native of the area into which they would be sent by the study; finally, that they be a student of the writer in the year following the survey. The criteria of residence was used to overcome the problems of language. In Eastern Nigeria several major languages are Spoken as well as a number of dialects of each, but English functions as a lingua franca. English is a useful medium of communication so long as the subject matter is not abstract or technical. In such instances it is best to use the reSpondent's native tongue to avoid ambiguity, confusion and error. Use of the language native to both reSpondent and enumerator was insisted upon. A three day training period was used to prepare the enumerators for Phase I. An enumerator's handbook was written, sample questionnaires reviewed, the intent of the questions made clear and the purpose of the study discussed. Instruction was given on the techniques of interviewing: -290- how to probe, how not to lead, how to gain and maintain rapport. Trial interviews were held for one day. A local poultryman was employed to act as reSpondent and the enumerators interviewed him before the group. Several prepared scenarios were used to place the enumerators in different test situations both for experience and demonstration. The work for Phase I took four weeks. At the end of the second week, the enumerators returned to Enugu to exchange experiences and work out problems encountered in the study. At the end of Phase I two days training was given in farm records. Phase II began on August 1, 1966. The students had to return to classes in late September so replacements had to be found to carry on the work for the final three months. The student enumerators trained their replacements starting September 1, 1966. Several follow-up trips were made to supervise and check the progress of the work. One enumerator did poor work in Phase I and II and his material had to be redone. Before each phase and twice during Phase II, letters were sent to all farm owners on the sample list explaining the study to them and to give a progress report. Very good reSponse was received from reSpondents in Phase I. Some larger producers said that they would not participate in Phase II, but the general level of enthusiasm and cooperativeness was heartening. and remarkable. Each participating -291- producer in Phase II was promised in return for his help an appraisal of his poultry enterprise based on our findings and his ranking relative to other participants (Appendix E). Complete anonymity was of course guaranteed. At the end of Phase II enough farmers had become interested in the EDI record system that provision is being made to continue it on a wider scale throughout the region. Each enumerator was given a detailed map of his area on which to plot the location of each farm visited in Phase I. The purpose of this exercise was three-fold: 1. to help in the selection of sample units for Phase II. 2. to plot the area distribution of producers. 3. as a check against fraudulent interview. The enumerators contributed in large measure to the successful accomplishment of the field study. Phase III - Consumer Survey A sample was prepared from surveys done in four cities in Eastern Nigeria in December 1966. The objective of the survey was to gain some insights into consumer habits of persons at different levels of income and of egg consumption in particular. I No time series on egg prices exist from which price elasticities could be calculated. However, income elasticities may be made if price and income information can be obtained -Z9Z- for the same moment in time. To gather such information this survey was made. It was decided to gather 120 interviews from each of four cities, being 480 in all. This figure was a function of the size of the size of staff and time available. It was estimated that an enumerator could do up to five one hour interviews a day. However, only two weeks were available to do the survey as most of the enumerators were university students working over Christmas break. Each enumerator was presumed able to perform 40 interviews over the period and only 12 were available. The four cities were selected on the following criteria. Calabar was selected as the only substantial non-Ibo city in the region. Enugu is an administrative city where a higher income and better educated public was likely to be found. To represent typical traditional Ibo communities, Onitsha was selected. Finally, the region's major industrial city, Port Harcourt was added. No reliable up-to-date census information exists with regard to these four cities. Likewise up-to-date maps are lacking. To cope with these deficiencies natives of the four cities were recruited to make two maps. Once done the residential areas are marked out and the characteristics of each district noted. The streets in each district were marked out and each compound along the street numbered and marked. The districts were attributed as being high, middle, or low -Z93- income. Such districts are not too hard to identify by virtue of their obvious housing differentials. For example, a district visibly reflects whether it is occupied by civil service and professionals, by business or commercial or by unskilled classes. Half the sample units in each town were allocated to the. low-income group and half of the balance were allocated to middle and high income groups reSpectively. The numerical proportion being 60-30-30. Enough units were wanted in each stratum to yield a good distribution. Each compound on all the streets of an income area was given a number and the sample units drawn by simple random sampling. Within the compound the enumerators were instructed to interview any family unit available. As it happened fewer households than usual were present within the compounds at the time of interview because many had returned to their home areas over the Christmas holidays. Two enumerating groups were recruited. One, made up of university students, worked under the writer's supervision in Onitsha and Port Harcourt. The other, composed of part-time Federal Department of Statistics employees worked in Calabar and Enugu under Mr. U. Udosen. Enumerators were trained by their reSpective supervisor. The consumption sample consisted of 480 urban sites provided a substantial replacement reserve. The final sample was 456 households reflecting shortfalls eSpecially in the higher income group and a few Spoiled enumeration sheets. -294- APPENDIX E QUESTIONNAIR ES USED IN GATHERING PRIMARY DATA FOR THE POULTRY STUDY 1. Phase I Questionnaire used to gather data on Entrepreneurship among commercial poultrymen. Schedule Number If on a farm settlement check here Farmer's Name Address Name of business, street, village, division, province Name of Enumerator Date and place of interview Time at beginning of interview Language in which the interview was done GO THROUGH INTRODUCTORY COMMENTS TAB NO. QUESTION NO. QUESTIONS 1. 1. Are you the owner of this business? Yes (1) No (2) 2. If no, what is your association with the firm? 3. How old are you? f. 295 ‘ TAB NO. Q. NO. 4. 10. 11. 12. What province and county council does your family come from? If 4 is different from present address, how did you come to move? How long have you been at the present site? How many years of education have you had? 0123456789101112(circleone) How long have you been in the poultry business? 1 2 3 4 5 6 7 years (circle one) Do you consider the poultry farm as your most important work? ‘ Yes (1) No (2) If no Specify How many hours do you devote to it daily? 12 3 4 5 6 7 8 hours (circle one) How much of your total income do you get from the poultry enterprise? 1. almost all 2. 3/4 3. 1/2 4. 1/4 5. almost none Now we would like your ‘work history beginning with the most recent job. List periods of employment and unemployment prior to entering the poultry business. Type of work or period of Duration in employment months a . b. c. -296- TA B NO. Q. NO. 10. 13. 14. 15. 16. 17. What other jobs do you have now? a. b. C. Where did you get the idea to enter the business? from friends or relatives from neWSpaper heard a public talk about it radio other (Specify) Ulrtht—i 0 How long after you first heard of the business before you entered it? 1. a month 2. three months 3. six months 4. nine months 5. a year 6. more than a year Why did you decide to start a poultry farm? 1. I though it would be a good supplement to my income 2. a good supplement to my pension 3. the best investment of my money available 4. I was dissatisfied with my job and wanted to become independent . I had no job 6. other (Specify) U1 Where did you obtain the money to enter this business? from my family from personal savings from income or pension from loan other (Specify) U'lthONH ~297- TAB NO. Q. NO. 18. If a loan, what was the source? 11. l. a bank 2. government agency 3. a friend 4. family 5. other (Specify) 19. What were the general terms of the loans? a. name of loan if from government b. period to repay c. interest rate d. security offered e. has it been repaid now? f. other comments 20. Did you encounter any difficulties in obtaining a a government loan? Yes (1) 12a No (2) If yes, Specify 12. 1. lack of personal influence 2. favourtism shown to others 3. could not meet requirements 4. Special favours asked of me 5. lack of cooperation from officials 13. 6. other (Specify) 21. Judging from your own experience, what were the most difficult problems to overcome when you entered the business? (you may check several, but not order of priority): lack of experience in the business lack of money lack of knowledge of markets lack of chicks other (Specify) U14>UJNH o -298- TAB NO. Q. NO. 22. What training program did you participate in? 15. l. Abakaliki 2. other poultry centre in Eastern Province 3. Israel 4. United Kingdom 5. other (specify) 16. 23. Did you send your manager to a training program? Yes (1) No (2) 24. If answer to 22 is yes, Specify which one 25. Which years have you attended the annual poultry conference at Nsukka? 2. 1964 4. 1966 (if you intend to) 26. How much land do you have at the location of the poultry enterprise? 27. RIR WL MIXED OTHER SUM Layers Growers Cocks Broilers In addition to these, do you have any: ducks turkeys other fowl 28. What was your egg production today this week this month 29. What do you consider to be your average production per hen? -299- TAB NO. Q. NO. 18. 19. 20. 21. 22. 30. 31. 32. 33. 34. 35. What type of housing do you use? 1. specially constructed house 2. adOpted building How much did it cost? Who built it? How long do you think it will last? How many birds will it house? Where do you buy your chickens? l. Abakaliki 2. Thornber 3. PAC 4 5 Lincolndale other (Specify) What age chick do you buy? 1. day old 2. week old 3. point of lay Are you satisfied with the quality of chick that you are getting? Yes (1) No (2) If no, why? undetermined breed high mortality? poor growth poor service by supplier . poor production by layers . other (Specify) O‘U'lI-FBUJNH C How do you decide when to replace your laying flock? (Specify) -300- TAB NO Q. NO. 23. 24. 25. 26. 36. 37. 38. 39. 40. 41. How do you get your feed? . produce on your farm . obtain from M. O.A. . buy in open market . obtain from Pfizer uwaI-d Do you have to fetch the feed yourself? Yes (1) No (2) What do you pay per bag at feed store? If delivered to you, how much do you pay per bag? Do you use different feeds for layers, growers, broilers? Yes (1) No (2) (a) If you are not satisfied with the feed you are using, why? cannot get it when I need it . unconstant quality . poorly packed . other (Specify) Acume- (b) How far are you from your feed source? (c) What is the mix ratio you use if you mix market maize with a commercial concentrate? What member of your family work in the poultry enterprise Relationslgp Hours per week Pay Rate Children Wives Other 3 -30l- TAB NO. Q. NO. 27. 28. 42. 43. 44. 45. 46. Other than family members, how many persons do you employ for the poultry enterprise? No. Hoursqaer week Meals Pa_y per week #ri—I Why did you select the system of keeping layers that you use? 1. only one I knew about 2. I felt it best met my needs 3. couldn't afford any other 4. other (Specify What do you use for litter? When do you change litter? What determines which birds you will cull? a. physical condition b. physical appearance c. age What method of culling (selecting non or low producers) do you employ? a. general appearance b. colour of comb, ear lobes and legs c. physical examination of pelvic region d. age e. other f. none used g. Do you employ someone else to cull for you ? Yes (1) No (2) -302- TAB NO. Q. NO. 29. 30. 47. 48. 49. 50. 51. 52. Do you debeak? Yes (1) No (2) What do you do about other vices? a. egg eating b. cannibalism c. other (specify) How often do you cull? a. never b. on a regular basis c. whenever I see a likely bird d. other (Specify) How often do you collect eggs? 1. once daily 2. twice daily 3. more than twice Where do you store eggs? a. in a cool room b. wherever convenient What diseases have your flock been vaccinated against? 1. Newcastle 2. Fowl Pox a. What problems do you have obtaining veterinary services? (specify) b. How often does the veterinary deworm? delouse? - 303- TAB NO. Q. NO. 53. What sanitation measures do you take to protect your flock? 31. Yes (1) No (2) - feet bath for attendantsfi 32. Yes (1) No (2) - restrict visitors 33. Yes (1) No (2) - exclude Alien fowl 54. How do you diSpose of : a. culled birds b. manure c. litter d. old feed bagsw 55. What are the average ages of your flocks? FLOCK DATE OF TYPE OF NUMBER ‘ HA TCH ‘70 PR OD. HA TCHER Y BIR D l 2 3 4 56. What is the average mortality of each flock? 57. What is the fowl mortality history of your farm? _ 58. a. What records do you keep? 34. Yes (1) No (2) - laying record of flocks 35. Yes (1) No (2) - total cost of feed and quality of feed eggs used in household mortality number of eggs sold, price of eggs 36. Yes (1) No (2) 37. Yes (1) No (2) 38. Yes (1) No (2) b. Do you keep records on a per flocks basis? Yes (1) No (2) 39. What are they? -304- TAB NO. Q. NO. 59. How do you diSpose of your eggs? 40. I sell them to local merchants I have a contract to whomever comes to my door keep them for hatching (number in ) use for hatching (order of ) market scheme (importance: ) (1, 2, 3, 4, 5) O‘U'IHPUONF" o 60. a. Do you grade your eggs? 41. Yes (1) No (2) b. How? 1. appearance (size) 42. Yes (1) No (2) 2. Weight 43. Yes (1) N0 (2) 3. colour 44. Yes (1) No (2) 61. Do you take any steps to preserve the internal quality of your eggs? 45. Yes (1) No (2) What are they? 62. How long do your eggs stay at the farm before they are moved out? 46. 1. less than a day 2. a day 3. other (Specify) —305- TAB NO. Q. NO. 47. 48. 49. 63. 64. 65. 66. How do you price your birds before sale ? On the basis of: weight age . cost of production . other (Specify) quNv-s What price do you normally receive (or charge) for your poultry? l. per head 2. per pound How far is it to your market? a. Do you have contracts to sell poultry Yes (1) No (2) Where? (check) univer sity college hOSpital E. N. D. C. wholesaler retail shOp b. Do you have contracts to sell eggs? Yes (1) No (2) Where? (check) university college hOSpital E. N. D. C. hotels wholesaler retail Sh0p -306- TAB NO. Q. NO. 67. During the past 12months, what has been: 1. your lowest price for poultry which month? 2. your highest price for poultry which month? 3. your lowest price for eggs which month? 4. your highest price for eggs which month? 68. How much does it cost you to tranSport your eggs to the market? 69. Where do you sell your eggs most of the time? a. local market b. at the farm (do you have a Sign board?) Yes (1) No (2) c. a buying agent (name ) (1. large shOps/hotels in town e. local retailer 70. Where do you sell your poultry most of the time? a. local market b. at the farm (do you have a sing board?) Yes (1) No (2) c. a buying agent (name ) d. large shops/hotels in town fl e. local retailer + 71. What changes would you like to see in your present marke t arrangements ? -307- TAB NO._ 6. NO. 72. 73. 74. 75. 50. 76. 77. 51. What prices do you charge per dozen eggs in different markets? Farm Price in Price to Price to Contract Grades Price Local Mkt. Retailer Wholesale Price Extr a large F Large ; I: Medium Ungraded What producers or marketing COOperatives are you a member of? What has been your experience with competition from government eggs in marketing? Give us the names and addresses of poultry farmers who have gone out of business: Do you plan to stay in the business? Yes (1) No (2) If no, why not? Are you sorry you entered? Yes (1) No (2) If yes, why? Check if farmer is willing to participate in Farm Management Project TIME AT END OF INTER VIEW: ~308- 2. Phase II Farm Management Records Employed by the Poultry Study. Form one - used during the first contact with the prOSpective farm study site. Form two - prepared and collected weekly from farms having studied grower flocks; from a form three type weekly summary. Form three - the weekly summary collected every 8-10 days from the farm site. Form four - prepared from the weekly summaries at the end of each four week period. Iii lull! i1! ill 1. 9. 10. 11. 12. 13. 14. 15. -309- FORM ONE Schedule Number Farmer's Name Address number village division province Flock number House number pen number Variety of birds used (RIR, WL, LS, 404) Kind of feed *,_i manufacturer type if home made, ration and pr0portion Date of hatch day month year Hatchery of origin Number of birds purchased Number of birds at start of record Age in days at beginning of record Estimated sales value of the flock now Value of your house Age of house Construction materials used List all equipment present in the house Description price material age Name of nearest extension man and address Distance to his office r..i11.l....l. S 3622.32 20 umoo 230H. pomSOS msoxofio 2072 m ¢ m N 2 0 M 2 . Jain—358502 6800222 002nm Bow mumoU mumoU pooh mumoD 602.22 329202220 2.02932 2.62628 «moO 2.30.2. 2250. Hon2 .072 2.8.0.2. .850 20 300 2.30.2. V2022“. you 20 .072 2.02qu 3.22 2672 [ m22.90 20 02mm $2320.30 20 $00 mHHAADm 072292222 n20 HmOO kayonoumm . 92299022 98% 2002.22 26.220. 20 692.2. 09502.2 1228.92 20 BSD .072 0252.02.20m 03H 2>2mOh -311- €5.14.-. .2. I QJIIIIII‘ h .32. 9: 2o 2.5 2: 330B no“ and monswfl 222.. 232.2. .253 .055 r. .2232 .ssm .umm fish was 8.2.0 :32 2.5.22 2.9222 2.225 2.3.2.... was 2. m N 2 mm... .22.? 32.38622 .2622 266mb pooh mussom so 9262.2 20 nonEsZ you 2.3062200 wwwm 20 20 922.202 3mm 290.2. $202.2 2.8.08 m>mn2 22.23.2223 22152nt III .072 mums Com 62002.22 [25352.2 muom 63202.2 Swarm 3mm 2.23.3.2 2.22m 20 692.2. 02.00 2.02.8222 mmmmh. $2 mOrA w- l 4 h >Hd885m 2.02.882 02ma2m 022.0 230.2. 2 Z L 2.... _ pooh 226mb 22262.2 2“0 260202 2662250 2.62.232.fl V2063 32.38022 mo pooh 982.2 20 96228572 no.2 mqu 0H. .ponm >22mn2 326625 “moo mpsson2 2.30.2. mmwm 2.305 owmuo>< wm<2>22>2bm 020322272 22:29:02.2 com 2002.22 0352.2 32603 chm «o @928 8.3.22 2.02.232 22032.2 20 3mm .072 o2d2ov220m MDOh Emorm -3l3- 3. Phase III Questionnaire used to gather consumer data from four cities in Eastern Nigeria. NUMBER OF INTER VIEWER DATE or INTER VIEW TIME STAR TING TIME ENDING r TOWN AREA or TOWN 4 LOCATION OF INTER VIEW LANGUAGE ReSpondent: 1. Expatriate 2. African Sex of ReSpondent: l. Ldale 2. Female 1. We are interested in learning what foods you eat and how often you eat them. (0, never; l-several times a year; 2-once a month; 3-several times a month; 4-once a week; 5-several times a week). ITEM FR EQUENCY Gari l Fermented Cassava Yam Fresh Fish Stockfish Maize 000009 t—‘D—‘HI—IH NNNNNN wwwwww ArlihhrPI-Prh mmmmmm -314- ITEM FREQUENCY Goat Pork Beef Chicken Chicken eggs Rice Peppers Green Vegetables Dried beans Guinea eggs Beer Hard liquor Guinea corn OOOOOOOOOOOOO D—lt—lb—‘l—ll—‘t—‘D—‘O—It—‘D-‘r—‘I—Ib—i NNNNNNNNNNNNN wwwmwwwwwwwmw $$¢$t¥>¢¢¢t§¢~rfi¢rfi mmmmmmmmmmmmm We are eSpecially interested in learning about the egg and chicken eating habits in your household. (We shall define household as the peOple who eat from your pot). 2. How many chicken eggs are consumed in your household? a week a month a year 3. How many eggs do you usually buy at a time? 4. How frequently do you buy chicken eggs? never several times a year once a month several times a month once a week several times a week Ulrwar-Io 5. Where do you usually buy chicken eggs? 1 local hawker 2 local market 3 cold store 4 direct from far 5 other (Specify) ~—‘.L~.—£2\. fl 9. 11.2 ~315- 6. How many eggs did you buy the last you bought them 7. How much did you pay for them? 8. Where did you buy them? 9. Do you have any hens? How many 10. How many hens do you have now? 11. How many eggs did you get from the last week? 12. Why don't you eat more chicken eggs? 1. Price generally too high 2. Unappealing flavour 3. Religious restriction 4. Social restriction 5. Others Specify in each case 13. Why do you think many peOple may not like eggs? . Price generally too high . Unappealing flavour . Religious restriction . Social restriction . Others Specify in each case U'IIh-UoNI—I 14. Why do you think eggs may be eSpecially good for you 15. Which members of your household do not eat eggs? (Check all applicable!) men women boys girls babies LnI-P-ri-s O -3l6- 16. Why do they not eat them? (Specify) 17. In what different ways do you prepare eggs? boil in shell (Rank in decending order of use 1, 2, 3 I) cook out of Shell use as ingredients for other foods 18. Do you usually eat your eggs with meals? 0 no 1 yes 19. If no, where and when do you usually eat them? (Specify) 20. Do you ever eat Guinea eggs with your meals? 0 no 1 yes 21. When does your family eat chicken? 0 never 1 several times a year 2 once a month 3 several times a month 4 once a week 5 several times a week 22. Where do you usually get the chicken you eat? 1. Hawker 2. Market 3. Cold store 4. From farmers 5. Your own flock 23. Do you usually buy them alive? 0 no 1 yes f3“: 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. -317- What price did you pay for the last chicken you bought? What size was it? larger medium small What price do you usually pay for chicken? How many chickens does your family eat? 1. In a week 2. In a month 3. In a year What pr0portion of the chicken you eat in a year do you raise your self?% On what occasion does your family usually eat chicken? Why do you think some peOple do not eat chicken? Have you ever bought slaughtered and dressed poultry meat? Yes No If No, why? . Rather too costly ‘ . Not available when wanted . Not as good as live bird . The meat is too soft . Any other reasons, explain UTI-bUONI—I If you buy your eggs and/or chicken from stores most of the time, which store do you buy from most of the time Which store or stores do you buy from at any other future? -318- 35. Why do you buy from the first store most of the time? 36. 37. 38. 39. 40. 41. 42. It has the best products Provides best services It is here I buy most of my things It stands at the most convenient Spot in town It is the most pOpular Sh0p in town I do not know any others selling such products It has cheapest prices Any other? (Specify) mslofnvthH What is the highest grade of school your husband/wife reached? Are you always satisfied with the quality of the egg you buy? Yes No If No, what is usually wrong (Explain fully) If Yes, what in your own opinion is a good egg? (Please explain fully).__ This has been most helpful. Now we would like to get an idea of your food budget. How much did you Spend for all food last week? last month? How many peOple do you feed from your pot? How many men? women boys girls babies Total a pun“... . _' LA! . 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. -319- Of your total family income money? every month, what part is spent on food? We are almost done now, we would just like to have a little general information about your family. As we said before, this information will be used together with nearly 500 other persons, nothing Specific about you will ever be mentioned. We haven't even asked your name! In which province or county were you born? What is the highest grade of school you have reached? How many wives does your husband have? What job does your husband have? Government Private firm Self-employed If he works for the government, what is his position? a. How many years has he been with the government? If he works for a private firm, in what capacity? a. How many hours per week does he work? b. How long has he been with the firm? If he is Self-employed, what sort of work does he do? If other members of the household unit earn income, please Specify: Member his/herjob monthy wages What is the estimated monthly income for your whole household? Thank you for your help Time Ending ring. h. ._._. ——. .5 ‘5 -320- APPENDIX F ESTIMATION OF FEED CONSUMPTION BY LAYER AND GR OWER FLOCKS IN EASTERN NIGERIA y This is an estimate of the annual feed output necessary to support the commercial poultry flocks in 1968 _i_f the present high rates of chick r2 production are continued - eSpecially by the Regional Poultry Center. i These estimates are based on data deve10ped by the EDI survey‘of the economics of commercial egg production in Eastern Nigeria. The figures are estimated from projections of monthly inventories of hens, and grower flocks multiplied to yield an annual figure. Thus each month, there will be some 171, 000 layers of all ages, each consuming about 1. 8 pounds of ration. Similarly, there will be approxi- mately 112, 000 chicks, unsexed to be supported each month. The survey indicates that a pullet consumes 24 pounds of feed over a five- month period whilst a cocker el will be fed half as much if it is sold-off at twelve weeks. These estimates of the expected commercial chicken pOpulation of Eastern Nigeria and the quantities of feed they will consume are based upon several as sumptions: 1/ Report prepared for Arthur D. Little 8: Co. by the author regarding the prOSpect for a second commercial feed mill in Eastern Nigeria. -321- 1. That the hatcheries continue to produce at the following average monthly rates: 26, 000 unsexed chicks (MOA alone produces at a rate of 250, 000 per year), and 7, OOO sexed chicks. 2. That layers live 80 weeks, 58 of these productive ones. A grower will consume 24 pounds of feed and a layer 94 pounds during the course of its life. This level of feeding is a function [2 h of management and is not Significantly affected by the type of bird fed. Managers feed on the average 1. 8 pounds of feed per week per layer - but this mean embraces a wide deviation from . 9 - to an unbelievable 3. 6 pounds per week. 3. That 20 per cent of the initial chicks hatched do not reach maturity, and that 50 per cent of the initial hatch iare males. I assume that only 40 percent of the hatches actually become point of lay pullets from the unsexed chick rate. 4. That 80 percent of the point-of—lay pullets will reach 80 weeks of age. 5. That the self-hatched and imported chicks represent no more than a 10 percent increase over the number of chicks listed in point one above. Estimated feed consumption: (all in Short tons) per month: per month 226 tons for pullets 666 tons for layers 892 tons of ration per month -322- per annum 2, 712 tons for pullets 7, 990 tons for hens 10, 702 tons annually to support an average monthly population of 171, 000 layers and 112, 000 chicks and gr ower 5. r1: Outlook - If the past is any reliable guide to the future; 1968 will 4 see (1) considerable over-production of eggs if hens are fed a prOper 'im- ration; or (2) a considerable feed shortage leading to very low egg production due to severe under-feeding. Of these two alternatives the latter would appear the more likely. If each hen lays 160 eggs per annum, 171, 000 hens will lay two and a quarter million dozen eggs. This figure was approximated in 1964 when Severe pressure was put upon the absorptive capacity of the market. Incomes and tastes have not undergone much change Since then - neither have production costs. The effect upon producers profitability is clear. It is hard to say what the annual production is in the region - however, combined current production of poultry ration is less than 6, 000 tons. Indeed, it is admitted and lamented that the region has been hard-pressed to supply the smaller population of the near-recent and present. -323- Total Annual Feed Production In Eastern Nigeria In short tons 1963 1964 1965 1966 Estimate 1968 Approximate Total 1,100 4, 000 4, 500 5, 500 10, 702 Number of day- old chicks pro- 143, 429 369, 068 116, 741 250, 711 396, 000 duced by all hatcheries Pounds per bird produced 15 21 81 44 50 The very large number of birds hatched in 1964 had to be supported in 1965-66, which period is remembered as one of severe feed shortages. It should be recalled that this was a period when trade moved unimpeded across regional boundaries. 9 It was estimated that at that time only some 1 percent of the maize used in ration derived from regional production, the balance coming from the maize-growing middle-belt. With this source now in question, how will the layer-hen population be provided? With regard to the presence of a market for a new mill, it must be noted that at the present time the industry is divided into two portions. One center's upon Enugu and is supplied by the MOA mill. The second is the other high income area - Port Harcourt. These latter producers rely mainly upon Pfizer for their feed. The high costs of tranSporting —’ “~ .2.-._. l‘. L . l -324- low-value feed gives each firm a comparative advantage in its area. A third mill would have to capture one of these two markets. Better, a new miller could usefully arrange a contract with the MOA to perform the latter's function in the milling business. Whether a subsidy arrangement would be continued would of course be Open to question. However, to this viewer it seems that the government may be reluctant to carry the feed subsidy burden much longer in view of the sharply mounting claims against its resources. ‘— r:-—- 2 Distribution by Province of Commercial Poultryme n* -325- APPENDIX G SUPPLEMENTAL TA BLES Table G-l Province M. O. A. List Veterinarian List Abakaliki 34 31 Annang - 15 _1_/ Calabar 16 - __1_/ Degema l6 - Enugu 45 28 Onitsha 6O 39 Owerri 4O 66 _l_/ Ogoja ll - Port Harcourt 25 44 Umuahia 35 77 Uyo 34' 26 y Yenagoa - - Total 316 326 ll Not included in this study. * MOA list provided by MOA staff - livestock section from reports made by extension wor ker s. The veterinarians' list was compiled by poultry project staff preparatory to drawing up research program in April 1966. P1,-L--..._-...u 58.222 0222 .3 06030.20 mpnooou 50.2.2 9022223 .3 2262222800 .5238 .30 320230 22012020 000 .N smfi SHOE on as mmosm o» 082 2562 52023.8 2.2.2582me was ammo >Ho£3m22 mo mowfinonm “do. .Emudaxsgo .w U