Is Debt Financing a Burden or a Boost to the Growth of Small Scale Poultry Farms? Evidence From Nigeria

The growth of poultry industry is very relevant to the economic growth in Nigeria. Poultry farm growth may respond to debt financing either positively or negatively over time. So the purpose of this research was to examine the asymmetric relationship between debt financing and the growth of poultry farms in Nigeria. Multi-stage procedure for selection of sample was employed to involve two hundred and forty (240) poultry farmers in the survey. Primary data collected with structured questionnaire were analyzed using descriptive statistical tools (mean, percentage, standard deviation). Inferential statistical formula was employed for data analysis. Result indicates that 6% of total asset was financed by debt indicating that debt threshold of 50% was neither attained nor exceeded. Growth in stock size, revenue and poultry owners’ equity responded positively to debt financing but to a small extent. Significant determinants of debt status of poultry farms identified were: farm age, farm size, loan condition, loan duration, loan sources and owners’ equity. The study focused on a sample of poultry farms in developing nation so caution should be exercised in over generalization of the outcome. More access to external debt financing is recommended to boost poultry farms’ growth in Nigeria.