Comparative Study of the Cost, Profit Margin, and Effectiveness of Locally Formulated Feeds Against Industrially Manufactured Broiler Feeds for Establishing an Entrepreneurship (Feeds Formulation) Venture

The high cost of poultry feed, which accounts for a substantial proportion of production expenses, remains a major challenge to profitable broiler production, particularly in developing economies. This study investigated the comparative cost, profit margin, and effectiveness of locally formulated feeds against industrially manufactured broiler feeds, with the aim of establishing a viable entrepreneurship venture in feed formulation. The study was conducted in Pankshin Local Government Area of Plateau State, Nigeria, using a completely randomized design involving fifty (50) day-old broiler chicks divided into two groups. Group A was fed industrially manufactured feed, while Group B received locally formulated feed prepared from readily available ingredients. Data on body weight, feed cost, market price, and profit were collected and analyzed using descriptive statistics and independent samples t-test at a 5% significance level. Results showed that broilers fed industrial feed attained significantly higher mean body weight (4.54 kg) compared to those fed locally formulated feed (2.93 kg) (t = 6.91, p < 0.001), indicating superior growth performance. Similarly, the mean market price (in Nigerian currency - Naira, ₦) of broilers fed industrial feed (₦14,714) was significantly higher than that of those fed locally formulated feed (₦13,428) (t = 2.08, p < 0.05). However, profitability analysis revealed that broilers fed locally formulated feed yielded significantly higher mean profit (₦10,371) compared to those fed industrial feed (₦4,767) (t = -9.05, p < 0.001), largely due to the substantially lower cost of feed production. The findings demonstrate a clear trade-off between biological performance and economic efficiency. While industrial feeds enhance growth performance and market value, locally formulated feeds provide superior economic returns. This study concludes that locally formulated feeds offer a sustainable and profitable alternative for poultry production and present a viable pathway for entrepreneurship development, particularly in resource-constrained settings. It is recommended that improvements in local feed formulation be pursued to optimize both growth performance and profitability.