DOI: 10.36347/sjavs.2021.v08i09.002

Pages: 87-94

Following the land reform programme, the Zimbabwean commercial broiler sub-sector has undergone structural transformation from predominantly being dominated by large scale producers to being a small scale producer led sub-sector. Despite this structural transformation, there are limited empirical studies on small scale poultry production performance and in particular commercial broiler contract production. The purpose of this study was to determine the profitability of broiler contract growers in Chegutu District of Zimbabwe. Cross sectional data was collected using a structured questionnaire from a population of 54 broiler contract growers. The study employed the gross margin analysis technique to establish the profitability of broiler contract production and the Ordinary Least Squares regression approach to analyse its determinants. The study found that broiler contract production was profitable with the mean gross margin per grower per batch being $4834,20. The return per dollar invested was $0,12 while the gross margin per bird sold was $0,44. Feed and chick costs were established to be the major production costs constituting 62.06% and 26.36% of total variable costs respectively. Significant factors that positively contributed to profitability of broiler contract farming were selling price, gender of grower, age of grower, education level of grower, grower experience in broiler production and feed costs. On the other hand, grower years with key employee, daily management of broiler production activities by grower, batch size, vaccines and medication costs, transport costs and the food conversion ratio negatively and significantly affected profitability. The study recommends that measures should be put in place to encourage more smallholder growers to join broiler contract farming schemes as it is a profitable venture. Female growers must also be encouraged to venture into broiler contract farming as the results have shown that they are more profitable when ....