Effect of agricultural cooperatives on pig farmers’ profitability in central agroecological zone of Delta State, Nigeria

Abstract

Pig production is economically viable due to its high survival rate, efficient feed utilization, prolificacy, and ability to farrow twice per year. Despite these advantages, its production remains the least in terms of meat supply due to several limitations such as insufficient capital, high feed costs, poor extension services, and high medication costs. Thus, the study examined the effect of agricultural cooperatives membership on pig farmers’ profitability in Central Agro-ecological Zone of Delta State, Nigeria. A multi-stage sampling procedure was used to select 80 cooperative and 80 non-cooperative pig farmers. Data were collected using a well-structured questionnaire and analysed using descriptive statistics, profitability analysis, multiple regression analysis, and the Likertrating scale. The results showed that the majority of the cooperative (68%) and non-cooperative (85%) pig farmers were male with a mean stock size of 199 and 105 pigs, respectively. Cooperative societies provided credit to pig farmers (84%), with an average credit amount of ₦ 64,381.08. Farmers also received piglets (36%), transportation services (52%), and relevant information (63%), which were vital in reducing farmers' risk as part of the services rendered by cooperative societies. Pig production is profitable in the study area with net profits of ₦ 1,260, 364.31, and ₦ 612,924.74, a return on investment of 0.74 and 0.67 for cooperative and non-cooperative farmers respectively. The cost of pig stocked (0.546) and cost of transportation (-0.536) had a significant effect on the farmers' profitability. Inadequate finance (mean = 3.66 and 4.07) and high transportation costs (mean = 3.66 and 4.07) were significant constraints for both cooperative and non-cooperative farmers. Non-cooperative farmers faced other constraints, however not limiting cooperative farmers which included high incidence of disease (mean=3.06), stealing(mean=4.13), and inadequate customers (mean= 4.43). The study concludes that pig production in the study area was profitable with cooperative societies having a positive effect on its profitability. Transportation and stock costs were significant determinants of profitability in pig farming. It is therefore recommended that Cooperative societies should continue to enhance and expand their services to address the diverse needs of pig farmers, including providing access to timely and adequate finance, transportation services, market linkages, and input supplies.