An Assessment Of Small Scale Poultry Farmers’ Access To Loan And Their Challenges In Rivers State
The objectives of this study were to assess small scale poultry farmers’ access to loan and their challenges in Rivers State using Obio/Akpor Local Government Area, and Ogba–Egbema–Ndoni Local Government Area as a case study. The study adopted the survey research design, using the cross-sectional approach because it involves assessment of agricultural credit acquisition among small scale poultry farmers in the study area. Structured questionnaire was administered to eighty –eight (246) randomly selected respondents in the study area and interview technique was also used to obtained additional information from the respondents whenever the need arose. The study concludes that agricultural credit is adjudged as an important input to increase poultry production and poultry enterprise using loans in the study area is profitable; however the profitability level is a function of the scale of production. The study suggested that government should remove security advancement of collateral conditions that discourages poultry farmers from commercial banks facilities, formal and informal money lenders should reduce the interest rate to one digit for farmers to afford convenient repayment and more borrowers to be encouraged, and lenders should timely approve/disburse fund to farmers for effective acquisition and curtail the protocols involved in credit acquisition.
Table of Content
- Title Page
- Table of Content
- List of Tables
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objective of the Study
- 1.4 Research Questions
- 1.5 Research Hypothesis
- 1.6 Significance of the Study
- 1.7 Scope of the Study
- 1.8 Limitation of the Study
- 1.9 Definition of Terms
- 1.10 Organisations of the Study
Review of Literature
- 2.1 Conceptual Framework
- 2.2 Theoretical Framework
- 2.3 Empirical Review
- 3.1 Research Design
- 3.2 Population of the Study
- 3.3 Sample Size Determination
- 3.4 Sample Size Selection Technique and Procedure
- 3.5 Research Instrument and Administration
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Validity of the Study
- 3.9 Reliability of the Study
- 3.10 Ethical Consideration
Data Presentation and Analysis
- 4.1 Data Presentation
- 4.2 Analysis of Data
- 4.3 Answering Research Questions
- 4.4 Test of Hypotheses
Summary, Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
1.1 Background of the Study
Agriculture is the bedrock on which every successful and stable economy the world over is built. In Nigeria, agriculture accounts for one third of the Gross Domestic Product (GDP) and employs about two third of the labour force (Otunaiya et al., 2012.). The challenges of food insecurity and hunger in developing countries like Nigeria have caught the attention of experts and governments worldwide (Emaikwu et al., 2011; FAO, 2003). Population growth, urbanization, and income improvements are the main drivers of increased demand for foods of animal origin in developing countries (Abdullah et al. 2011; Steinfeld, 2003). The sufficient supply of animal protein is most critical in the global food basket crisis (FAO, 1995). As a result, growing demand has led to a rise in the production of foods of animalorigin all around the globe, especially from poultry and pigs (FAO, 2010).
What is known as poultry farming in Nigeria developed slowly but steadily from the 1950’s until, when as a result of introduction of Structural Adjustment Programme (SAP), it began to experience the crisis which persisted until today (Okonjo, 2000). The importance of animal protein apart from its palatability is undisputed. Animal protein provides man with high quality food nutrients for growth and tissue replacement. It determines the level of nutrition of the population and the health of the work forces, which in turn determines the development of a nation and its economy.
The Nigerian government in an attempt to alleviate this problem has always resorted to mass importation of meat. The Obasanjo led administration has put more effort towardsself-sustainability in poultry production by placing ban on the importation of frozen chicken. The problem which solution is sought is that of harmonizing or balancing the shortage in supply caused by the ban on importation of frozen chicken. This can only be achieved by increasing poultry production. Also, many Nigerian livestock farmers in their own effort have preferred to invest in the poultry industry making it easy for the transformation of the previous back yard and less efficient system of poultry keeping to a more scientific system, despite their poor capital base. The potential of poultry industry in reversing the inadequate protein intake by most Nigerians has also been recognized. In comparison to other livestock enterprises, broiler production have the advantage of the fast growth rate, cheaper, high feed conversion efficiency, can be eaten by one family man and is not forbidden by any culture or religion. The Nigerian agricultural economy enjoyed decade of boom in poultry production between mid-70’s and mid 80’s. For instance, the population of cattle (174.32 million), goat (156.6 million) and sheep (190.31 million) while that of poultry was estimated to be 660 million against other animal population in 1983. The production level was so high that the sub-sectorial economy becomes second in African (Onyebimana, 2000) with proper attention, poultry can be relied upon in a short run solving the deficit in protein supply.
Several suggestions have been offered as a short term measures to combat meat shortages in Nigeria. Mua’dAbdul, et al., (2008) has suggested emphasis on massive poultry production, but the limitations posed by shortages and high cost of food grains and medication were obvious. Even the call for increasing awareness of Nigerians about the serious consequences of animal protein shortages, the encouragement of every Nigerian to keep a few livestock as a hobby by as well as liberalization of loan facilities and subsidies on factors of production for genuine livestock farmers to increase production and reduce price has not significantly solved the problem.
In Rivers state, poultry production plays an exceptionally important role; over 38% of rural households are engaged in smallholder poultry production (Kryger et al. 2010). Poultry production plays an important role in rural incomes in sub-Saharan Africa; especially in Nigeria (Mengesha 2011; Van der Sluis, 2007). The enforced demand for foods of animal origin could be satisfied especially by the production of poultry, as these products have seen the greatest increase in production in recent years (FAO 2011; Speedy, 2003; Delgado and Narrod 2002).Access to loan is expected to enhance farming households’ ability to acquire capital intensive technology and assets to facilitate and improve farming activities resulting in greater capacity to invest in cultivation of high yielding crops and larger farm holdings (Emereole, 1995; Nwaru, 2003; Nwaru and Onuoha, 2010; Ammani, 2012).
1.2 Statement of the Problem
Access to loan is expected to enhance farming households’ ability to acquire capital intensive technology and assets to facilitate and improve farming activities resulting in greater capacity to invest in cultivation of high yielding crops and larger farm holdings (Emereole, 1995; Nwaru, 2003; Nwaru and Onuoha, 2010; Ammani, 2012). Qureshi et al. (1996) observed that an increase in credit to agriculture will lead to increase in food production and farmers’ income, because as the demand for credit increases farmers output also increases, resulting in improvement in their wellbeing. However, agricultural loan remains a critical means through which many problems confronting poultry farmers can be resolved. Primarily, it assists in breaking the chains of the vicious circle of poverty which is the main cause of low productivity and low income of the poultry farmers (Bamiro et al., 2012). The level of credit available to these farmers is however, grossly inadequate and therefore, limits the realization of their full potentials. It is against this background that this study seeks to assess small scale poultry farmers’ access to loan and their challenges in Rivers State.
1.3 Objectives of the Study
The general aim of this study is to assess small scale poultry farmers’ access to loan and their challenges in Rivers State.
To achieve this, the study will specifically:
- Discuss the accessibility of loan by small scale farmers.
- Identify sources of agricultural loan among poultry farmers in rivers State.
- Determine the factors affecting loan access by poultry farmers in rivers State.
1.4 Research Question
The study will be guided by the following questions:
- What are the sources of agricultural loan among poultry farmers in rivers State?
- What are the factors affecting loan access by poultry farmers in rivers State?
1.5 Research Hypothesis
- Ho: Poultry farmers in Rivers State do not have adequate access to loan.
- Ha: Poultry farmers in Rivers State have adequate access to loan.
1.6 Significance of the study
The concern of credit facilities as a factor input has been amplified by different experts and government itself has the potentials of opening new doors of opportunities in the development of small-scale farming in Nigeria.
There are few studies on the subject of small scale farm credit and how their socioeconomic characteristics influence their decision about whether or not to take credit. The development of the sector is not feasible if an avenue of credit facilities is not provided. Therefore, this research work is directed at providing insight into this less studied dimension in agriculture by eliciting and analyzing factors affection credit access of small scale farmers’, and also to evaluate the nature, structure and pattern of credit facilities to small scale farmers in Nigeria.
1.7 Scope of the Study
The study generally focuses on the assessment of small scale poultry farmers’ access to loan and their challenges.The study will be delimited to small scale poultry farmers in Rivers State.
1.8 Limitation of the Study
In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.
1.9 Definition of Terms
Agricultural productivity in Nigeria was defined by Olayide (1991) as the rate of index of value of agricultural produce to the value of input employed in production.
Agricultural finance is all about the acquisition and utilization of capital (i.e. finance), the factor of production that facilitates the acquisition, procurement and management of the other factors of production namely, land, labour, capital – physical, and entrepreneur(management), in agriculture and which, is not only a lubricant but the lifeblood of the economy.
1.10 Organization of the Study
The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.
Summary, Conclusions and Recommendations:
This chapter summarizes the findings on the assessment of small scale poultry farmers’ access to loan and their challenges in Rivers State. The chapter consists of summary of the study, conclusions, and recommendations.
5.2 Summary of the Study
In this study, our focus was to assess small scale poultry farmers’ access to loan and their challenges in Rivers State using Obio/Akpor Local Government Area, and Ogba–Egbema–Ndoni Local Government Area as a case study. The study is was specifically carried out to discuss the accessibility of loan by small scale farmers, identify sources of agricultural loan among poultry farmers in rivers State, and determine the factors affecting loan access by poultry farmers in rivers State.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 246 responses were validated from the enrolled participants where all respondent were small scale poultry farmers in Rivers State.
Agricultural loan is adjudged as an important input to increase poultry production. The study shows that certain factors are responsible for the access to agricultural loan from any source. This study also shows that poultry enterprise using loans in the study area is profitable; however the profitability level is a function of the scale of production.
The study suggested that government should remove security advancement of collateral conditions that discourages poultry farmers from commercial banks facilities, formal and informal money lenders should reduce the interest rate to one digit for farmers to afford convenient repayment and more borrowers to be encouraged, and lenders should timely approve/disburse fund to farmers for effective utilization and curtail the protocols involved in credit acquisition.
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