Profitability Analysis of Layer Chicken Production in Dar es Salaam, Tanzania

Abstract

This study employed Gross Margin (GM) analysis to assess profitability of layer production and the Ordinary Least Square (OLS) linear regression to determine factors that influence layer production GM in Dar es Salaam, Tanzania. Cross-sectional data form 127 layer producers were collected and analyzed. The study findings revealed that layer keeping in Dar es Salaam was profitable earning an average GM of 3483 TShs. per tray of 30 eggs. The main components of the production costs were feeds (54.1%), housing (16.6%), day-old chick (9.4%), and Labor costs (7.2%). Furthermore, age, experience, flock size, and access to market information have a significant influence on profit. With these findings, the study recommends subsidization of animal feeds or stimulation of innovation in the feeding industry to decrease the cost burden and increase profitability. Layer keepers are encouraged to form strategic associations for easy access to credit acquisition as well as collective purchase of inputs and marketing of outputs