ABSTRACT
This study investigated the effect of removing the oil (PMS) subsidy on poultry layer production in ikpoba Okha LGA of Edo state, Nigeria. The removal of the subsidy was expected to increase production costs for poultry farmers, potentially impacting their profitability and production levels. Data was collected from a sample of 50 poultry farmers through surveys before and after the subsidy removal. To achieve the study, the objectives are as follow; To examine the social- economic character of the respondent in the study area; To estimate and compare cost and return of poultry layers production before and during subsidy removal in the study area; To examine the effect of subsidy removal on quantity of egg supply; To Identify the coping strategy employed by poultry-layers farmers to mitigate the effect of subsidy removal; To Identify the constraints faced by layer farmers as a result of fuel subsidy removal. To achieve these objectives the following models were used; Discriptive data, simple percentage and frequency for objective one, farm budgetary for objective two, poisson regression for objective three and likert scale for objective four and five. Results from analysis showed a significant increase in the total cost of layer production after the subsidy was removed, rising from ₦1,232,697 to ₦2,546,017 on average. Major cost increases were observed in inputs like feed, bird stock, veterinary xii expenses, and utilities. However, poultry farmers were able to offset these higher costs by increasing egg prices and production volumes, leading to a substantial rise in total revenue from ₦5,680,302 to ₦10,651,708 after subsidy removal. Consequently, the average profit increased from ₦4,447,605 to ₦8,105,691 despite higher costs. However, the return on investment (ROI) declined slightly from 3.61 to 3.18 after subsidy removal, indicating a marginal decrease in profitability relative to the investment. A Poisson regression analysis revealed that factors like egg prices, labor costs, stocking costs, and feed costs had significant effect on the quantity of eggs produced. Constraints like high feed costs, price fluctuations, and energy costs were major challenges faced by farmers. To cope with the subsidy removal's effect, farmers employed strategies such as value addition, online sales, transport collaboration, exploring cheap feed sources, and utilizing solar energy. The study recommends Implemention of policies to stabilize input prices, such as feed and energy costs, to reduce the burden on farmers and improve profitability. Also to Promote the use of renewable energy sources, like solar power, and provide incentives or subsidies to farmers to adopt these technologies, reducing their reliance on fossil fuels and mitigating the impact of fuel price fluctuations
