Environmental costs management and profitability of small and medium scale poultry farms in Nigeria. Evidence from Osun State

This study determined the impact of environmental costs management on the profitability of poultry farms in Osun State. Using a multistage sampling technique, the study administered questionnaires to 74 poultry farmers and results showed that poultry farmers were not well-trained in environmental costs management. In furtherance, the farmers had good knowledge of heat control, biosecurity, disease management but little knowledge of environmental pollution management. Also, dumping, compost, and flushing methods of waste disposal were prevalent among sampled farmers. Budgetary analysis revealed average gross margin of N1,947,035.09 (US$5,408.43); gross margin ratio of 1.01/production cycle and environmental costs alone constituted 9.8% of the total variable costs. In addition, regression result showed that environmental costs influenced the profitability of poultry farming. The study concluded that environmental costs affected the profitability of the poultry industry and manifested significantly in the cost of poultry waste generated. Thus, continuous emphasis should be placed on the need to manage waste profitably by earning additional income from poultry waste sales via integrated farming and environmental regulations for poultry farms should be reviewed for effective compliance in the industry.