Economic analysis of broiler value chain. A case study of Hillview farm in Masvingo province, Zimbabwe

Author

Mangava, Lyn

Title

Economic analysis of broiler value chain. A case study of Hillview farm in Masvingo province, Zimbabwe

Abstract

This study conducts an economic analysis of the broiler value chain focusing on Hillview Farm, a medium-sized broiler farm located in Masvingo Province. Data was collected from 30 respondents using structured questionnaire and personal interviews. Gross margin analysis, Marketing margin analysis, and value chain mapping analysis were used to analyse the data. Gross margin analysis was used to estimate the cost and return of broiler production. The findings portray that the gross margin was $ 12,475.76 per batch of 8,000 broilers and the return per $ invested was $1.41 indicating that broiler production at Hillview Farm is profitable and viable. However, the study depicted that though the farm has proved profitable, the broiler farm is experiencing high feed costs, which comprise 66% of the total variable costs. Marketing margin analysis was used to examine the marketing system and its performance at Hillview Farm. Therefore, the broiler value chain at Hillview Farm has proved to be efficient and productive as shown by the results of the marketing margin analysis. The study revealed that the farm's marketing margin was $11,314.16 or 91% high and incurred $1,161.60 which is 9% marketing cost hence a high marketing margin indicates that revenue generated from sales is sufficient to cover the marketing expenses and the farm still earns profits. Value chain mapping analysis was used to examine the marketing system for broilers at the farm. The result revealed that Irvine’s is the supplier of DOD chicks, Fivet veterinary distributor supplies vaccines and medication to the farm, and Gain (feed supplier). Followed by the farm itself which is responsible for the rearing of the broiler from day old until slaughtering age. Hillview goes on to process and distribute dressed chicken and live chicken to restaurants, food outlets, schools, and consumers around Masvingo. SWOT analysis was used to identify constraints and opportunities in broiler production and marketing. The results show that the broiler farm experienced high feed costs, stiff competition, and outbreak of diseases. However, the farm should prioritize cost management, particularly regarding feed costs by considering formulating the feeds on the farm to control the cost of feeds better

Date

June 2024

Publisher

BUSE

Keywords

Economic Analysis

Value Chain

Marketing Margin Analysis

Supervisor

Dr A.C Mujeyi