Determinants of Saving and Investment Strategies among Poultry Farmers in Kwara State, Nigeria

Abstract

Many Nigerian farmers struggle to fund their enterprises because of inadequate savings and for any meaningful investment to be achieved; a sound saving mobilization has to be pursued. Thus, this study analyzed the determinants of saving and investment strategies among poultry farmers in Kwara state Nigeria. Using the list of 350 registered poultry farmers in the state, 175 farmers were randomly selected for the study. Descriptive statistics, binary logistics and multiple linear regressions are the analytical tools utilized. The pattern of savings showed that more than 58.5% of the respondents make savings with commercial banks. The result further indicated that the average value of investment of the respondents stood at ₦718,312.7 per cycle. The pattern of investment indicated that poultry business took the highest percentage of 45.28. Furthermore, the regression analysis revealed that the coefficient of education, poultry size, number of mortalities, savings and amount of loan obtained were statistically significant factors influencing investment in poultry farming. On the other hand, poultry farming experience, farm income, amount of nvestment and loan obtained are the major determinants of savings. The major constraints hindering savings among poultry farmers are distance to savings institution, lack of confidence in banking sector and poor savings habit. On the other hand, outbreak of pest and disease, poor market structure, insufficient capital are the major bottlenecks hindering investments in the area.The study recognized the need for mass education and enlightenment campaign for mobilizing savings and intimating the farmers on investment opportunities. Policies and straegies aimed at providing timely formal and informal loans to poultry farmers should be vigorously pursued.