PROFITABILITY OF APICULTURE AS A BUSINESS VENTURE IN IKWUANO LOCAL GOVERNMENT AREA OF ABIA STATE, NIGERIA

Abstract

The study examined the profitability of commercial honey bee production as a business in Ikwuano Local Government of Abia State, Nigeria. Purposive and multi-stage random sampling techniques were used to select 60 honey bee farmers. Instrument for data collection was a pre-tested and structured questionnaire. Results of the net return analysis showed that honey bee production in the study area was profitable, posting a gross margin and net income of N 131,033.28 (US$ 873.56) and N 125,512.12 (US$ 836.75), respectively (1 US$ = N 150). The multiple regression analysis using linear functional form as the lead equation revealed that all the significant variables (variable cost, quantity of honey and price of product) had positive influence on the profitability of commercial honey bee production in the area with a coefficient of multiple determination (R2 ) of 0.923 and F-ratio 53.818. It was recommended that the government should encourage bee farmers through the provision of incentive such as credits to enable the farmers expand production since the enterprise was found profitable.