The Impact of Credit on Poultry Farm Productivity in Oyo 1 State, Nigeria

Abstract

sorlrces of credit and the amotlltt dertzarzded by the farmers ill tlle study area were assessed. A
raltdorrr sarrlple of farnzers was taken in Ibadan metropolis. Primary data zoas collected on tlleir
socio-ecotzon~ic characteristics, sources of capital alzd credit, qllnrrtities and prices of tlleir farnl
illpzlts and outpzlts. Tlze data was analyzed llsiizg descriptive statistics and regressiorz nlznlysis.
Reszllts show tlznt illfor~rlals orlrces of credit are still preferred nrrd rlrore tlinn 11alf of tlie resp011de1lts
are credit constrained. Tlre statistically sigtzificant factors illat afiect farril prodrlctivity irzcl~lde
valzle of feed, qtlalrtity of water, lrrlllzbers and age of birds, trairring a~rd the credit corlstrailzf colzdition
of farmers. Credit constraitzt will redlice firnz's prodtectivity. It sllows that access fo credit is not
szlficie~zt to irrlprove prodllctivity but the credit lrrrist he adeqlrate to eizsrire sr$ci,-lzt workirzg capital.
Both commercial and developnzent banks slzo~lld be ellcoz~raged to extend adequate credit to this
sub-sector. Tlzis could be effectively carried out tlzrorlgl~ their cooperative societies. Tlre tralzsactiolz
cost of credit slzould also be redtlced by extelzdilzg credit to farmers tllrough tlzese societies. Tlzis will
encourage more farnzers to obtniiz lonrz frorrl formal sources. Tltere is the lzeed for a tlzorol~glz nppraisal
o f poultry projects as it will assist in the correct assesstlzelzt of the cacdit needs of lonlz applicants.