Competitiveness of broiler production in Nigeria: A policy analysis matrix approach

The Nigeria broiler sector faces a stiff competition from imported frozen chicken over time. However, policies were put in place to improve its competitiveness. In this study, we examined the competitiveness of the Nigeria broiler production using a policy Analysis matrix (PAM). We used both primary (cross-sectional survey) and secondary data source for this study. We found that all of the production systems except the backyard/village system were socially profitable with the large-scale system having a social profit of N7,313,753, the medium scale a profit of N2,709,253.4, small scale a profit of N264,576.8 and the backyard/village with a loss of N81,043.5. These results also showed that the large scale is the most competitive, followed by the medium scale, then the small scale and lastly the backyard/village production scale. The estimated values for NPCO across the systems were greater than 1 and the NPCI was less than 1 for all the production systems. The results of sensitivity analyses showed that an increase in FOB and exchange rate increases the competitiveness of the systems while a decrease in FOB decreases competitiveness.