EMPOWERING FEMALE SMALL-SCALE BROILER FARMERS IN ENUGU STATE TO CREDIT

ACCESS

A RESEARCH PROPOSAL

Written by: Ugochinyere Theresa Nwosu

Agricultural Production Chain Management (Livestock Chains)

Van Hall Larenstein,

University of Applied Sciences

P.O. Box 9001,6880 GB Velp,

The Netherlands.

14TH JUNE 2024

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 CHAPTER ONE

1.1 INTRODUCTION
Agriculture is a fundamental pillar of the global economy, playing a critical role in food
security, employment, and economic development. In developing countries, agriculture
often forms the backbone of the economy, and its importance cannot be overstated. For
instance, agriculture is responsible for 35% of Nigeria's Gross Domestic Product (GDP),
making it a crucial sector for the nation's economic stability and growth (Netherlands
Enterprise Agency, 2020). Before the discovery of oil, agriculture was Nigeria's primary
source of foreign currency earnings.

Within Nigeria's agricultural landscape, the poultry industry stands out as particularly well-
organized and commercialized. This sub-sector accounts for 25% of the total agricultural
contribution to GDP (Netherlands Enterprise Agency, 2020). With approximately 180 million
birds, the Nigerian poultry industry is Africa's second largest. It produces 454,000 tonnes of
meat and over 14 billion eggs annually, contributing 6-8% to the GDP and representing
about 30% of the total agricultural output. The adaptability of poultry to various
environments and the rapid growth rate of broiler chickens, which reach market size in five
to eight weeks, underscore the sector's potential for high productivity and profitability.

Poultry farming involves raising domesticated birds like chickens, geese, quails, ducks, and
turkeys for meat and egg production. This sector not only supplies food and raw materials
for industries but also supports research and creates numerous employment opportunities.
Poultry products are widely accepted across all cultures in Nigeria, unlike some other
livestock such as pigs, which makes poultry farming a vital and culturally integrated
agricultural activity. The sector's profitability and its significant contribution to the national
economy further highlight its importance (Kaine and Chukwuma, 2017).

The poultry production landscape in Nigeria is characterized by diverse and complex

systems. Around 80 million chickens are raised in extensive systems, providing ample space
and freedom for foraging. Another 60 million chickens are managed under semi-intensive
systems, which aim to balance between free-range and confined conditions. Additionally,
approximately 40 million chickens are reared in intensive systems, where meticulous control
is maintained over every aspect of their environment to maximize productivity (FAO, 2018).
In regions like Enugu State, poultry production holds significant potential and comparative
advantage because of the region’s ready accessibility to consumer markets. Statistics
indicate that poultry is the major livestock reared in Enugu, positioning the state as a critical
player in Nigeria's poultry industry (Okoroafor et al., 2020). However, the industry faces
several challenges, including the high cost and availability of inputs, illegal importation of
products, and inadequate production techniques. Addressing these issues through capital
provision is essential for the industry's growth and sustainability (Odum & Chukwuji, 2022).

A critical aspect of the Nigerian poultry industry is the significant role played by women.
Women are essential to the agricultural value chain (especially the broiler value chain),
contributing substantially to food processing, preservation, and food security while
enhancing the well-being of their families and communities. According to the National
Bureau of Statistics (NBS), women are key contributors. In sub-Saharan Africa,

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approximately 66% of women work in agriculture as smallholder farmers, and in Nigeria,
over 52% of smallholder farmers are women (Amounu, 2022).

Agricultural credit is vital for farmers to invest in new machinery, quality seeds, fertilizers,
livestock, and labour, enabling them to operate larger and more profitable businesses. The
need for agricultural credit is universal, and recognized even in highly developed countries,
as it fosters agricultural development, improves efficiency, and expands production (Ekwere
et al., 2020). In Nigeria, formal and informal bodies such as agricultural development banks,
microfinance banks, cooperatives, special lending schemes, and self-help groups provide
agricultural credits. However, these organizations often view lending to farmers as high-risk,
and the terms and conditions of loans, along with cumbersome application procedures, are
not supportive of farmers' needs (Adigun, 2022; Yusuf et al., 2018).

Efforts to provide credit facilities to smallholder farmers in Nigeria have been insufficient.
Loans often do not reach the intended recipients due to political affiliations and the
presence of false farmers who divert funds to non-agricultural activities (Adewale et al.,
2022). This situation underscores the need for more effective and transparent credit
systems to support genuine farmers, especially women, in enhancing their productivity and
contribution to the poultry industry and overall agricultural sector.

Despite their pivotal role, female small-scale broiler farmers in Enugu State, like in many
other regions, face significant challenges in accessing credit and financing. The capital
required for successful poultry farming typically needs to come from the farmers'
investments. However, many small-scale female farmers have limited income and savings
capacity, which hampers their ability to procure and utilize modern technology (such as
battery cages that can enable them optimise space usage) that could increase productivity
and income (Akintunde et al., 2020). Although the primary source of funding for these
farmers is often family, accessing agricultural credits that could mitigate production
challenges is crucial (Odum & Chukwuji, 2022).

Recognizing these challenges, this research commissioner, Munachiso Multipurpose

Services, a private extension delivery organization that initiated its microcredit unit in 2020,
has offered 42 loans through its three types of financial products: individual loans, group
loans, and seasonal loans, which are provided to broiler farmers without any influence or
advice on their usage. The research commissioner observed that although repayment rates
(more than 95%) are good among female farmers, the number of female broiler farmers
accessing these loans remains low (less than 17% of willing female broiler farmers).
Munachimso seeks to develop strategies to enhance credit access for female small-scale
broiler farmers in Enugu State. By addressing this problem, Munachiso aims to empower
these women, expand its customer base, and ensure high loan repayment rates, ultimately
contributing to the socio-economic progress of the region and the broiler value chain by
tackling the problems identified in the problem tree (see fig. 1).

Fig 1. Problem Tree.

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1.2 PROBLEM OWNER/COMMISSIONER:
Munachimso Multipurpose Service Company aims to enhance credit access for female
small-scale broiler farmers in Enugu State. Despite the organization's efforts, significant
internal barriers hinder its ability to serve this target group effectively. The challenges
include ineffective outreach strategies, inadequate financial products and services,
restrictive lending policies and inefficient loan processing and approval systems.
Munachimso Multipurpose Service Company faces some internal barriers that hinder it from
effectively empowering female broiler farmers in Enugu State with credit access, to help the
company understand and mitigate these challenges, this research was commissioned.

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1.3 PROBLEM STATEMENT
Internally, Munachimso struggles with a lack of targeted marketing campaigns and
insufficient presence in rural areas, limiting its outreach capabilities. The financial products
offered are not tailored to the specific needs of female farmers and lack gender-responsive
loan terms and conditions. High collateral requirements and stringent creditworthiness
criteria further restrict access to credit for these women. Additionally, the organization faces
operational inefficiencies with limited staff to support customers and inadequate
administrative procedures for loan processing, monitoring, and support.
These barriers collectively result in reduced growth of Munachimso's customer base and
increasing loan default rates, negatively impacting the organization’s profitability and
sustainability. The failure to address these issues not only limits the financial inclusion and
economic empowerment of female small-scale broiler farmers but also hampers
Munachimso's ability to expand its market and enhance its reputation as a reliable financial
service provider.
Addressing these internal barriers is crucial for Munachimso to fulfill its mission of
supporting smallholder farmers, expanding its customer base, and ensuring high loan
repayment rates. Through targeted strategies and interventions, the organization can better
serve female broiler farmers, contributing to their economic advancement and the overall
development of the agricultural sector in Enugu State.

1.4 OBJECTIVE OF THE RESEARCH

The primary objective of this research is to develop and propose effective and sustainable
strategies for Munachimso Multipurpose Services to enhance credit access for female small-
scale broiler farmers in Enugu State.
1.5 Main Research Question
What strategies can a small private lending company use to enhance credit access for
female small-scale broiler farmers in Enugu State, increase its customer base, and ensure
maximum compliance both in the usage of the credit facilities and repayments?
Sub-questions
1. What are the current financial, marketing and administrative practices of Munachimso
with regards to empowering Enugu women with loans for improving their broiler farms?
2. What are the female broiler farmers’ loan needs and what practices have other loan
organisations used for satisfying them?
1.5 RESEARCH STRUCTURE:
This research will comprise six chapters.
 Chapter 1 will provide a brief introduction to the study, an overview of the problem,
the research objective, and the research questions.

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 Chapter 2 will outline the theoretical framework by reviewing literature on past
studies conducted on microfinancing, the broiler value chain, small-scale female
farmers, the gender-based value chain, lending policies, financial product
development, and marketing. Also, the development of the conceptual framework
on which the study is based will be done here.
 Chapter 3 will detail the research methodology used for the project.
 Chapter 4 will cover the presentation and analysis of the findings made.
 Chapter 5 will provide discussions of the findings detailed in the previous chapter
 Chapter 6 will answer the main research questions and offer recommendations in
line with the research objectives

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 CHAPTER TWO

LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK.

2.0 The Conceptual Framework:

The conceptual framework acts as an analytical tool that dissects the research concept,
clarifying its different dimensions and aspects. It delivers a systematic explanation of the
primary concept being explored, shedding light on its essential components and their
interconnections within the study's context.

Fig 2. Operationalisation of the Research Concepts

2.1 Microcredit and Microfinance

In the early 1990s, the term "microcredit" began transitioning to "microfinance" (Helms,
2006). The success of microcredit programs led to the 1997 Microcredit Summit, attended
by 2,900 delegates from 137 countries, representing 1,500 organizations. This summit
marked the rise in prominence of the term "microfinance" in the late 1990s (Elahi &
Rahman, 2006; Edward & Olsen, 2006). Elahi and Rahman discuss the functional and
conceptual distinctions between "microcredit" and "microfinance."
Rhyne (2013) proposed that while microcredit involves providing small loans to the poor,
microfinance encompasses a range of financial and non-financial services, including
insurance, savings, money transfers, social engagement, training, and credit. Today,
microfinance services are offered by various providers, from informal sources to established
banks. There is a growing trend of banks entering the microfinance sector to offer financial
services to low-income individuals. Traditional banks have been hesitant to extend credit to
the poor, perceiving them as high-risk borrowers. However, there is now a shift towards

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researching and developing inclusive financial systems that cater to the needs of the poor
(Rhyne, 1998, 2013; Helms, 2006).
The microfinance program is a pivotal strategy in poverty alleviation methods embraced by
developing nations. Microfinance, or microcredit, as defined by the 1997 Microcredit
Summit, involves initiatives that provide small loans and related financial services to
individuals living in extreme poverty, enabling them to initiate self-employment projects
that generate income. Often credited as the progenitor of the microfinance movement, the
Grameen Bank, founded by Mohammed Yunus in the 1970s in Bangladesh, ignited global
interest in microfinance (Jolis, 1996).
Since its inception, microfinance programs have proliferated across various regions,
including South and Southeast Asia, Sub-Saharan Africa, Latin America, and even Western
countries like the United States. These programs cater to the needs of the poor and
unbanked, particularly in rural areas afflicted by poverty. The primary objective is to extend
financial services, such as loans and savings, to individuals with minimal assets who operate
on the margins of formal financial systems. The ultimate aim is to empower these
individuals to expand their business ventures (Von Pischke, Adams & Donald, 1983).
2.1.1Limitations of Microfinance
Microfinance has demonstrated that individuals living in poverty are viable candidates for
banking services, showcasing their creditworthiness. However, despite its successes,
microfinance has limitations. According to Kiva (2009), Yollin (2007), De Klerk (2008), and
KIT & IIRR (2010), these limitations include:
 High Costs: Providing microfinance services remains costly. Microfinance
organizations handle a large volume of small loans and savings accounts, resulting in
elevated operational expenses compared to dealing with fewer larger loans.
 High Interest Rates: Interest rates in microfinance can reach up to 36% annually,
surpassing those of commercial banks but generally lower than those charged by
informal moneylenders. These rates cover the considerable costs associated with
microfinance operations, including capital costs, risk mitigation for loan defaults, and
transaction expenses.
 Limited Loan Amounts: Microfinance institutions typically offer small loan amounts,
ranging from $35 to $800, suitable for new clients but insufficient for business
growth or expansion.
 Short-term Loans: Most microfinance programs primarily offer short-term loans,
requiring quick repayment, often within 3 to 4 months through monthly
installments. This structure suits activities with immediate returns on investment but
is less ideal for ventures with slower capital turnover, such as farming.
 Little or No Flexibility in Loan Conditions: Microfinance institutions often provide
limited flexibility in loan conditions, failing to accommodate borrowers' specific
needs or adapt to changing circumstances. Some institutions, like Grameen Bank,

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 have introduced more flexible repayment options and expanded their product
offerings to address this issue.
 Exclusion: The focus on sustainability in microfinance often excludes the poorest
individuals from accessing financial services, limiting outreach to rural areas. Many
microfinance institutions are striving to enhance their outreach efforts to rural
communities and improve their social impact.
2.1.2 The Gaps in Rural Financing
Yunus (2007) pointed out that micro-entrepreneurs are often deemed unbankable by
private financial institutions, and perceived as lacking creditworthiness due to their absence
of credit records and collateral, compounded by factors such as illiteracy. Consequently,
banks find it more convenient and profitable to extend a few large loans to established
businesses rather than numerous small loans to small-scale entrepreneurs. The negative
perception surrounding agricultural credit exacerbates the situation.
Between the 1950s and the late 1980s, governmental bodies heavily intervened in rural
credit markets across developing nations, particularly in Africa. Substantial subsidies were
employed by governments and international donors to encourage rural lending. However,
this resulted in inappropriate allocation of inexpensive credit, low repayment rates, and
misallocation of funds, rendering rural credit programs unsustainable for private banks (KIT
& IIRR, 2010).
Additionally, agriculture inherently carries significant risks, including droughts, excessive
rainfall, pest infestations, diseases, inconsistent input availability, inadequate storage and
cooling infrastructure, poor road conditions, price fluctuations, and the seasonal nature of
many crops (Fries & Akin, 2004). Consequently, most banks are reluctant to finance
agricultural ventures. The limited presence of banking personnel and branches in rural
areas, coupled with extensive distances, escalates transaction expenses.
This serious rural finance gap retards the economic potential of agriculture (UNCTAD, 2004).
The perception of agriculture as a risky endeavor results in losses for farmers,
entrepreneurs, local and national economies, and the financial sector. It acts as a barrier to
agricultural development and impedes poverty alleviation efforts. Enhanced financial
markets in rural areas would catalyze agricultural and rural expansion, fostering economic
growth and reducing poverty levels (USAID, 2005).
2.2 Value Chain Financing
Value chain finance (VCF) is an approach that embeds financial services within the entire
agricultural value chain, from production to the market level. It ensures the financial
support required by all parties in the value chain, including producers, processors, and
marketers, to optimize their activities. VCF increases the efficiency and effectiveness of the
agricultural sector by addressing financing gaps and building tighter linkages among value
chain actors. It aims to provide innovative ways of delivering financial services to rural
producers and agri-businesses (KIT & IIRR, 2010).

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VCF is particularly relevant in developing countries where value chains are fragmented and
access to finance is limited. Appropriate value chain-based finance can mitigate risks and
raise productivity levels. Pre-harvest financing enables the purchase of quality inputs, while
post-harvest financing improves storage and processing facilities, reducing post-harvest
losses.
Successful VCF implementations usually result from collaboration and partnerships between
financial institutions, agribusinesses, and development organizations. For example, the
partnership between Equity Bank in Kenya, the Kenya Tea Development Agency, and
smallholder tea producers led to higher credit uptake among smallholder tea producers and
increased tea production. Such models demonstrate the potential of VCF in driving
agricultural transformation and rural development.

Figure 3. Broiler Meat Production Value Chain Map in Enugu State, Nigeria

2.3The Concept of Agricultural Credit

Agriculture encompasses various sectors, including crop production, fisheries, forestry, and
livestock. Credit refers to the capability to engage in production or development processes,
enhancing purchasing power. Agricultural credit involves the extension of small loans to
entrepreneurs through financial or non-financial institutions (Islam et al., 2014). Agricultural
credit can take various forms, such as seeds, deferred payment fertilizers, tractors, labor,
and storage facilities. It also signifies the ability to borrow funds (Adewale et al., 2022).
Agricultural credit is designed to meet the unique financial needs of farmers, influenced by
their planting, harvesting, and marketing cycles. Short-term credit finances operating
expenses, medium-term credit is used for purchasing agricultural machinery, and long-term
credit finances real estate (Adeboya & Adeola, 2008). Credit plays a crucial role in
modernizing agriculture and encouraging farmer participation in the development process,

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alleviating financial constraints, and promoting the adoption of new technologies (Mohsin,
Ahmad & Anwar, 2011).
2.3.1 Types of Agricultural Credit
Formal sources, or institutional sources, include financial institutions such as commercial
banks, microfinance banks, and the Nigerian Agricultural Cooperative and Rural
Development Bank (now the Bank of Agriculture). Informal sources, or non-institutional
sources, include professional moneylenders, cooperative societies, traders, commission
agents, and relatives and friends (Ibeneme & Mmuo, 2022). Akerele et al. (2021) categorized
credit institutions into three groups:
1. Formal: Commercial banks, microfinance banks, the Nigeria Agricultural and
Cooperative Rural Development Bank (NACRDB), and state government-owned
credit institutions.
2. Semi-formal: Nongovernmental organizations microfinance institutions (NGO-MFIs)
and cooperative societies.
3. Informal: Money lenders and Rotating Savings and Credit Associations (RoSCAs).
Impact of Agricultural Credit Access on Broiler Production in Nigeria
Access to credit empowers individuals to make well-informed decisions, essential for making
profitable choices. It involves analyzing personal, socio-economic, institutional, and other
factors that may influence credit utilization. It is important to note that access to credit
differs from actual credit utilization; individuals may have access to credit without
necessarily using it. The decision to utilize credit depends on various factors, whether
demand or supply-related. Nonetheless, credit cannot be utilized unless there is access to it.
Poultry businesses or enterprises require additional financing beyond farmers' investment
funds (Akpan et al., 2013; Akpan et al., 2020). Modern poultry farming requires producers to
employ contemporary technology and resources in managing operations (Udoh et al., 2017).
2.4 Lending Policies in Nigeria
Since the 1980s, Non-Governmental Organizations (NGOs) have emerged in Nigeria to
champion micro and rural entrepreneurs, transitioning from a supply-led to a demand-
driven strategy. The number of NGOs involved in microfinance activities has increased
significantly due to the formal financial sector's inability to provide necessary services to
low-income groups and the poor, as well as declining support from development partners.
These NGOs, including charity, capital lending, and credit-only membership-based
institutions, are generally registered under the Trusteeship Act as part of their poverty
alleviation efforts. They obtain funds from grants, fees, interest on loans, and member
contributions, but their outreach is limited due to unsustainable funding sources.
Microfinance Banks (MFBs) licensed to operate in a state are authorized to operate
throughout that state or the Federal Capital Territory, provided they meet prudential
requirements and have funds for opening branches. The minimum paid-up capital for these

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banks is N1.0 billion. NGO-MFIs are recognized as credit-only, membership-based
microfinance institutions and are not required to come under the Central Bank of Nigeria's
(CBN) supervisory purview. They provide micro-credits to their targeted population without
mobilizing deposits from the general public.
Microfinance service providers are expected to offer efficient and effective financial
services, including credit, deposits, commodity/inventory collateralization, leasing, and
innovative transfer/payment services. They should recruit and retain qualified professionals
through transparent and competitive processes, adopt continuous training and capacity-
building programs to improve staff skills, and observe fiduciary responsibility while
remaining transparent and accountable in protecting savers' deposits.
In Nigeria, the formal financial system serves about 35% of the economically active
population, leaving 65% excluded from financial services. This 65% is often served by the
informal financial sector, through NGO-MFIs, money lenders, friends, relatives, and credit
unions. The non-regulation of these institutions' activities has serious implications for the
CBN’s ability to promote monetary stability and maintain a sound financial system.
The Microfinance Policy, Regulatory and Supervisory Framework for Nigeria (2005) targets
several objectives:
1. Covering the majority of the poor but economically active population by 2020 to
create millions of jobs and reduce poverty.
2. Increasing the share of micro-credit as a percentage of total credit to the economy
from 0.9% in 2005 to at least 20% in 2020, and the share of micro-credit as a
percentage of GDP from 0.2% in 2005 to at least 15% in 2020.
3. Promoting the participation of at least two-thirds of the states and local
governments in micro-credit financing by 2015.
4. Eliminating gender disparity by improving women’s access to financial services by 5%
annually.
5. Increasing the number of linkages among universal banks, development banks,
specialized finance institutions, and microfinance banks by 10% annually
(Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, 2005).

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 CHAPTER THREE

RESEARCH STRATEGY AND

METHODOLOGY
3.1 METHODOLOGY
Having reviewed past literature on the concepts and practices of microfinancing in the
agricultural sector, this chapter is focused on identifying and discussing the methods that
was used for gathering the data required for informing the recommendations to be
proffered by this study

3.1.1 STUDY AREA:

This research was carried out in Enugu State, Nigeria, because of the huge presence of small-
scale broiler Farmers in the state, which was the reason behind the selection of this study
area. The state is one of the southeastern states in Nigeria, it is bordered by Abia State to
the south, Anambra State to the west, Kogi and Benue state to the north, and Ebonyi State
to the east. The state has a population of over 3 million people, spread across the 17 Local
Government Areas (LGAs) of the state.

Enugu state is mostly rural and agricultural, with nearly 70% of the population engaging in
different forms of farming activities. Although in a recent study conducted by Ikehi et al
(2022) in Enugu state, the state was divided into six agricultural zones based on the soil
characteristics of the areas, for this research, the state would be divided according to the
three existing (senatorial) districts for proper sampling (As shown in figure 4 and table 1
below).

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 Fig 4. Senatorial District and Local Government Areas of Enugu State.

Table 1. Senatorial District and Local Government Areas of Enugu State.

SENATORIAL LGA COMPOSITION NO of LGAs

DISTRICT

Enugu East Enugu East, Enugu North, Enugu South, Isi 6

Uzo, Nkanu East and Nkanu West

Enugu West Aniniri, Awgu, Ezeagu, Oji River and Udi 5

Enugu North Igbo-Etiti, Igboeze North, Igboeze South, 6

Nsukka, Udenu and Uzo-Uwani.

3..1.2 RESEARCH FRAMEWORK

This section explains the research design, including the methods and techniques used for
data collection and analysis. It encompasses the study population, sampling techniques,
data collection instruments (e.g., surveys, interviews),

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 Fig 5. Research Framework:

RESEARCH METHODS

Qualitative Research method

Qualitative research methodology relies heavily on the premise that perceived reality within
a social environment is constructed and maintained through the subjective knowledge of
individuals involved (Bogdan and Biklen 1982). Fryer (1991) supports this view by suggesting
that qualitative researchers seek to understand, describe, and interpret the underlying
principles of natural phenomena and events within their contextual framework. Ewings
(2003) encapsulates the goal of qualitative research as establishing a nuanced
understanding of the subject under investigation and encouraging participants to provide
thoughtful responses to the researcher's inquiries. This indicates that qualitative research
yields valuable insights and can complement quantitative research methods effectively. The
advantages and disadvantages of qualitative research method are highlighted in the table
below

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Quantitative Research Method

Quantitative research methods are founded on the idea that social reality consists of distinct
characteristics, and individuals are active participants who respond to these characteristics
within their surroundings (Morgan and Smircich 1980). This approach involves analysing
numerical data and measurements obtained from the samples being studied (Muijs 2010).
According to Cassell and Symon (1994), quantitative research is dependable and appropriate
for drawing conclusions based on statistical analysis of the sample. Therefore, using
quantitative methods in research provides a strong probability of quantifying and measuring
the outcomes of a study (Dolowitz, Buckler, and Sweeney 2008). The benefits and
drawbacks of quantitative method are shown in the table below

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RESEARCH METHOD TO BE USED

After a rigorous consideration of the benefits of both research methods, it was concluded
that this research method will use a mixture of both research methods to actualise its aim
and objectives. In order to successfully develop a potent strategy for empowering female
small scale broiler farmers in Enugu State through credit access, it is pertinent to understand
the perception of the farmers towards the use of microfinance loans for enhancing their
productivity in their farming businesses. This can only be done through the quantitative
research method where the majority opinion of the farmers will be duly considered. On the
other hand, the subjective knowledge of Munachimso Multipurpose Service Company is
vital for comprehending the challenges that are hindering the expansion of their services to
as many female broiler farmers in Enugu State as possible. This part of the research will

16
inform this study on how the effects of such challenges can be mitigated and this is where
qualitative research method comes into play.

3. DATA COLLECTION AND ANALYSIS

Data Collection
For achieving sound and effective conclusion and recommendations for any research study,
it is important to carry out rational and comprehensive analytical discussions on the subject
matter. These analyses are mainly facilitated by the collection and organisation of pieces of
information with the aid of data collection tools and techniques. The foremost and widely
recognised data collection methods are classified into primary and secondary data.

According to Dolowitz et al. (2008), a primary data tool involves collecting first-hand
information directly from respondents to reach a specific conclusion. Examples of primary
data sources include focus groups, interviews, case studies, and questionnaires.

On the other hand, Saunders et al. (2009) posit that secondary data tool involves gathering
information from existing literature that has been produced through research studies
conducted by academic researchers and scholars. Types of secondary data sources include
internet-based resources and library-based materials.

For the purpose of this work, both data collection tools will be deployed at certain stages of
the research. The secondary data collection tools will be used to provide vivid insight to the
value chain financing practices for rural agricultural projects in developing countries
(particularly for small-scale livestock farmers). Secondary data for this research would be
obtained from peer-reviewed publications, grey literature, textbooks, and other relevant
virtual and hard copy publications. The primary data collection tools will be used to gather
specific and valuable information with regards to value chain financing for female broiler
farmers in rural areas of Enugu State. It is worthy to note at this juncture that both
questionnaire and interview data collection tools will be used for this research. While the
questionnaire will be administered to the female broiler farmers in Enugu State, the
interview method will be used for finding out the challenges that the project commissioner
and other similar microfinance organisations in Enugu are facing in their bids to enhance the
accessibility of credit loans by female small scale broiler farmers in Enugu State.

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The multistage sample technique used by Otunaiya (2014) in their research, would be used
for this work. In the first stage, three local governments would be randomly selected from
each of the districts (shown above). In the second stage, 5 farmers from each of the 9 local
governments, who are Munachiso Multipurpose Service Company loan applicants, would be
considered. A total of 45 respondents would be expected for this study.

Data collection would be undertaken over 6 weeks, consisting of two major activities. The
first activity, which involves data gathering, will be done in the first two weeks of July 2024.
The process would commence with well-structured interviews on staffs of colleague
organisations to understand the practices they deploy for micro lending to small scale
farmers in Enugu State. Furthermore, the staff of Munachimso Multipurpose Service
Company will also be interviewed to obtain data on the organisation’s current loan practices
to small scale farmers in Enugu.

Upon meeting with the identified respondent, the aim of the research would be explained to
them to get their consent to participate in the study, before the instrument can be
administered to them. All identified respondents would be required to respond on the spot,
to ensure high quality retrieval rate. All possible doubts or misconceptions relating to the
study would be clarified and where needed, translated into local languages, to help the
farmers understand better.

The second activity would require random field visits to a few of the respondents for further
validation. For the study, the small-scale broiler farmers would be those whose rearing
capacity range from between 1-2500 birds, as categorised by the Netherlands Enterprise
Agency (2020).

The questionnaire used for the study has female small-scale broiler farmers as target
respondents. It was divided into three sections, to collect the following data;

1) The demographic information of respondents;

2) the perceived challenges to obtaining credit facilities and their loan needs; and
3) possible strategies to improve credit acquisition processes.

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Data Analysis

The data to be obtained from this study will be analysed in two ways. The responses
obtained from the questionnaire sessions will be analysed using tables, charts and graphs.
This is necessary because there is need to understand the most popular choices of the
respondents which will inform the project commissioner on how to develop strategies and
products that are tailor made for the intended farmers. On the other hand, content analysis
will be used to analyse the responses obtained from the interview sessions with the
microfinancing organisations (Munachimso inclusive). This method was considered
appropriate because it scrutinises the language used in the acquired text to adequately
emphasize the content of the responses (Cook 2015). As anticipated, the participating
organisations exhibited diverse micro lending practices, thereby underscoring the
importance of analysing the specific terminology used to describe these practices. These
practices were evaluated by integrating them within the theoretical framework outlined in
the literature reviewed in the second chapter.

Ethical and Legal Issues

The utilisation of primary data collection methods necessitates careful consideration of

specific ethical concerns (Kapp 2006). These concerns encompass autonomy, dignity, and
particularly, privacy. It is essential that these ethical considerations permeate every stage of
the research study to ensure that ethical standards are upheld. Accordingly, the questions in
the research questionnaire and interview have been designed to meet the ethics criteria set
by the university. Ethical issues considered include:

i. The researcher carefully considered the legal implications of the study and ensured
that all data collected from the respondents were used solely for research purposes,
as outlined by the Data Protection Act (1998).
ii. The researcher provided all respondents with informed consent forms that
comprehensively explained the research details, and obtained their approval
accordingly. This practice aligns with the recommendation of Polit and Hungler
(1991), who emphasized that participants should be given sufficient time and
information to decide whether to participate in the study or not.

19
 iii. Anonymity and confidentiality were strictly maintained throughout this research. The
data collected were treated with utmost confidentiality, and respondents' anonymity
was guaranteed at all times.
iv. Benefit-to-risk ratio: According to Behi and Nolan (2004), potential respondents may
be hesitant to participate in research if they believe that the risks outweigh the
benefits. Therefore, the researcher communicated both the risks and benefits of the
study to the respondents to uphold ethical standards.
v. Right to withdraw: Respondents were informed of their right to withdraw from
participating in this research at any time, particularly if they felt uncomfortable or
confused. They were assured that they would not be compelled to participate against
their will, consistent with the principles outlined by Behi and Nolan (2004).
vi. Finally, the issue of plagiarism was addressed by properly acknowledging all authors
whose works contributed to achieving the objectives of this study.

CHAPTER FOUR ANALYSIS

Introduction

This study is aimed at developing sustainable strategies that will help the project
commissioner to provide credit access to as many female broiler farmers as possible in
Enugu State. As a consequence of the literature reviewed in chapter 2 and the research
methodology explained in the previous chapter, this chapter will present the findings made
from the questionnaire and interview sessions held in regards to this study. Furthermore,
analytical discussions will be made here to robustly inform the recommendations that will
be made for developing the strategy.

PRESENTATION OF QUESTIONNAIRE FINDINGS

General Information

20
Out of the 45 potential respondents contacted to participate in this survey, 42 responded
positively while 3 people declined initially or opted out halfway through the session. The
final research sample used for this study is as shown in the table and chart below

Description Frequency Percentage (%)

Responsive Respondents 42 93

Non-Responsive Respondents 3 7

Total Respondents Contacted 45 100

Research Sample

Responsive Respondents
Non Responsive Re-
spondents

42

Research Sample

Age Distribution of the Respondents

Of the 42 respondents, 1 person is aged between 20 to 30 years, 22 are between 31 to 40

years while 19 are aged between 41 to 50 years. This is depicted in the table below

21
 Age Distribution Frequency Percentage (%)

20 – 30 years 1 2.38

31 – 40 years 22 52.38

41 – 50 years 19 45.24

Total 42 100

Age Distribution of Respondents

Farming Experience of the Respondents

The respondents’ answers to this inquiry show that only 3 people have less than one year
experience in the broiler farming venture while 26 people stated that they possess between
one to five years in the business. Furthermore, eight respondents answered that they have
between 5 to 10 years’ experience while only 4 of them have been in the broiler business for
more than 10 years. The responses are as shown in the chart below

30

25

20

15

10

0
L ess t h an 1 y ear B et w een 1 t o 5 B et w een 5 t o 1 0 Ov er 1 0 year s
year s year s

Farming Experience of the Respondents

Clients of Munachimso

Only 4 of the respondents are clients of Munachimso while 38 are not as depicted in the
chart below

22
 4

Client of Munachimso
Non Clients of
Munachimso
38

Value Chain Governance

Roles of the Respondents in the Broiler Value Chain

To this inquiry, all of the respondents (42) reported that they play more than one role in the
broiler value chain. While all of them are farmers, 37 of them responded that they also play
the role of retailers. A further 15 of them agreed that they play the role of wholesalers while
none of them is a processor. The findings are depicted in the table below

Broiler Value Chain Roles Frequency Percentage (%)

Farmers 42 100

Wholesalers 15 35.7

Retailers 37 88.1

Processors 0 0

Respondents’ Broiler Value Chain Roles

Respondents’ Awareness of NGO Roles in the Broiler Value Chain

When quizzed about the roles that NGOs play in the broiler value chain, the respondents
showed complete lack of awareness of such. All 42 of them replied that they do not know

23
anything about the involvement of NGOs in the broiler meat value chain. The responses are
as depicted in the chart below

Don’t know 42

No
0

Yes0

0 5 10 15 20 25 30 35 40 45

Due to the fact that none of them knows anything about the involvement of NGOs in the
broiler meat value chain, the question on the roles of NGOs became irrelevant.

Respondents’ Awareness about the rules and regulations guiding the broiler value chain
sector

The question on the awareness of the rules and regulations guiding the broiler value chain
sector also showed that none of them was aware is such exists. This is as all 42 of the
respondents answered “I don’t know” to the question. Consequently, the next two questions
on the questionnaire became irrelevant because they required the knowledge of the rules
and regulations guiding the sector. Responses are represented in the chart below

Don’t know 42

No 0

Yes 0

0 5 10 15 20 25 30 35 40 45

24
Respondents’ Direct Customers

When asked about who they sell their mature broilers to, the 37 of the respondents replied
that they sell directly to the consumers while 15 people said that they sell to the retailers in
the market. None of them sells to the wholesalers or processors. Their responses are
consistent with the roles they agreed to be playing in the broiler meat value chain asked
earlier. Responses from this inquiry is presented in the table below

Responses Frequency Percentage (%)

Direct to Consumer 37 88.1
Retailer 15 35.7
Wholesaler 0 0
Processor 0 0
Customers of the Respondents

Agreements for Broiler Sales

When asked if there is any agreement in place for the sales of their broilers, the
respondents all answered “No”. Their responses (which is depicted in the chart below)
consequently rendered the next two questions irrelevant.

42
45
40
35
30
25
20
15
10
5 0

0
Yes No

Respondents’ Agreement for Broiler Sales

25
Determinant Factors for Broiler Market Prices

The respondents were asked to state the factor(s) that determine the market prices of table
ready broilers. All 42 of them responded that the chief determinant factor for broiler prices
is market forces. Their responses are as shown in the table below

Determinant Factors Frequency Percentage (%)

Farmers 0 0

Retailers 0 0

Processors 0 0

Market Forces 42 100

Total 42 100

Respondents’ Determinant Factors for Broiler Market Prices

Cost and Value Share

Frequency of Broiler Batches Per Year

The respondents were asked how many batches of broilers do they raise in a year and their
responses are displayed in the table below

Broiler Batches Frequency Percentage (%)

1 0 0

2 2 4.8

3 4 9.5

4 36 85.7

Total 42 100

Respondents’ broiler batch frequency per year

26
From the table above, 4.8% of the respondents do two batches of broiler per year while
9.5% stated that they do 3 broiler batches in a year. Majority (85.7%) of the broilers
responded that they do four batches of broiler in a year.

Respondents’ volume of Broilers Per Batch

The respondents were asked of the volume of broilers that they are presently doing per
batch. The responses recorded are shown in the chart below

14
12
12

10
8
8 7
6
6 5
4
4

0
Less than 100 - 200 201 - 300 301 - 400 401 - 500 Over 500
100

The Respondents’ Volume of Birds Per Broiler Batch

The chart above shows that single majority (28.6%) of the respondents do between 100 to
200 birds per batch while 8 of them do between 401 to 500 birds per batch. Five of the
respondents do less than 100 birds per batch, 7 of them do 201 to 300 per batch while 6 of
the sample responders handle between 301 to 500 birds per broiler batch. Only 4 people
(9.5%) of the respondents do over 500 broiler birds per batch.

Cost of Production Per Cycle

Respondents’ Selling Price for Broilers

When the respondents were asked of the average selling price of their broiler birds, they
responded as displayed in the table below

27
 Broiler Selling Prices Frequency Percentage (%)
NGN (5-10 thousand) 16 38.1
NGN (11-15 thousand) 23 54.8
NGN (16-20 thousand) 3 7.1
NGN (21-25 thousand) 0 0
Total 42 100
Respondents’ Selling Prices for Broilers
The table shows that majority (54.8) of the respondents sell their broilers at the rate of
between 11 to 15 thousand Naira while 38.1% of them sell at a range of 5 to 10 thousand
Naira. Only 3 of the respondents agreed that they sell their birds at between 16 to 20
thousand Naira per bird.

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