EFFECT OF FINANCIAL LITERACY ON PROFITABILITY OF SMALL-SCALE BROILER FARMERS IN SELECTED LOCAL GOVERNMENT AREAS OF OYO STATE, NIGERIA.

The study examined the effect of financial literacy on profitability of small-scale broiler farmers in selected Local Government Area of Oyo State in Nigeria. It specifically described the socio-economic characteristics of small-scale broiler farmers, assessed the level of financial literacy among small scale broiler farmers, estimate the profitability of small-scale farmers and evaluate the effect of financial literacy on profitability of small-scale broiler farmers. Data were collected with the aid of structured questionnaire and interview guide from a total of 100 respondents. Data analyses were done using descriptive statistics, gross margin analysis and regression analysis. From the analysis, the study showed that 66% of the respondents were males and 34% were female. The proportion who were married was 56% and 59% had less than 6 years education. They possess a range of financial literacy skills, including financial planning, financial knowledge, financial behavior and financial products awareness. The gross margin result revealed that stocking cost accounted for 55.2% of the TVC, feed cost accounted 28.8% while transport cost accounted for 5.0%. The regression results showed that financial literacy components such as financial planning, financial knowledge, financial behavior and financial products awareness were all significantly influenced profitability of small-scale broiler farmers. Also, the socio-economic factors influencing the level of financial literacy among poultry were gender, age and education. The study therefore recommends that financial literacy should be part of agricultural extension teaching programs targeted at rural farmers to increase profitability.