DETERMINANT OF SAVING AND INVESTMENT BEHAVIOR OF SMALL SCALE POULTRY FARMERS IN UMUAHIA AGRICULTURAL ZONE OF ABIA STATE

Abstract

The study investigated the determinant of saving and investment pattern among small-holder poultry farmers in Umuahia agricultural zone of Abia state. The poultry farmers save little amount, so they do not have enough for their investments. The specific objectives were to: describe the socio-economic attributes of smallholder poultry farmers; identify the prevailing investment patters among the poultry farmers; estimate the determinants of savings volume of smallholder poultry farmers and identify the major challenges facing the poultry farmers in accumulating savings and expanding investment in the study area.

Multistage sampling technique was used to select well structure questionnaire. Descriptive and multiple regression analysis were used to analyze the data collected. Ten 10 farmers were randomly selected from the ten villages making it 100 poultry farmers. Results of analysis showed that majority of the respondents were married with a moderate household. Majority of them were literate. Results also show that most preferred savings outlets of small holder farmers were the informal savings outlets mainly the self-help groups. It was evident from the research that there were the propensities to save among farmers in the study area, inspite of low income. There were factors that have positive influence on savings behaviour of small holder poultry farmers surveyed, such as level of income, household size, education, age and access to credit. Meanwhile, the OLS results of the estimated determinants of investment pattern with doublelog functional form as the lead equation showed that age, flock size, farm income and expenditure influenced the inability to save.

The study, therefore, recommended that given the significance of the income factor in terms of savings, incentives such as improved technology, appropriate farm support services; medium and long term loans should be provided by the government and other bodies to farmers in order to boost their income level. Only then can the savings being accumulated in the next economy be transformed into productive investment.