Download complete project materials on Effect Of Livestock Production On Agricultural Output And Economic Growth In Nigeria
CHAPTER ONE
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GENERAL Â INTRODUCTION AND BACK GROUND TO THE STUDY
1.1 Background of the Study
The agriculture sector is one of the most important sectors in Nigerian economy, it is the foundation upon which the development of stable human communities depends, also in many parts of the world, agriculture sector has the potentials to be the industrial and economic spring board from which a country’s development can take off.
Sustainable agricultural development is one of the prerequisites for growth and stability in an agrarian nation like Nigeria which is highly endowed with both human and natural resources that favours crop and livestock production. In Nigeria a high percentage of the population earns their living from agriculture and agriculture oriented activities, and therefore contribute to the development of the nation (Balami, 2005).
Livestock production is a major component of the agricultural economy of developing countries like Nigeria and goes well beyond direct food production. The roles livestock play are important contributors to total food production which besides providing food, the driving force behind increased livestock production, livestock remain an important form of non-human power available to poor farmer.
The poor, in particular use organic fertilizer from livestock operations, especially when rising petroleum prices make chemical fertilizers unaffordable. Livestock also store value and provide insurance for people who have no other financial markets available to them.
Livestock production is a major economic activity in the economy complementing crop production. The predominant type of livestock kept includes cattle, sheep, goats, poultry production and dairy cattle. The livestock industry is an important component of general agriculture and is a key contributor to economic growth of any nation.
In addition to having capacity for earning revenue for the government, it is important for increased productivity it provides employment, food, farm energy, manure field, livelihoods and transport. Also sales of livestock and their productions also generate income to farmers. Agriculture is the art and science of crop and livestock production.
In this study agricultural output is taken to mean the value of agricultural GDP. The livestock sector makes diverse contributions to rural livelihoods and to agricultural output as a whole. Growth of livestock sector activity thereby stimulates economic growth of the overall economy, through direct income impacts on households engaged in livestock production and via a web of indirect horizontal and vertical multiplier linkages along expenditure and supply chains.
Prevalence Of Bacteria Food Pathogens Of Varieties Of Meal Sold In Local Eateries
According to Adegoye and ditah (2009), agricultural output can increase the level of income to farmers and people. However what constitutes level of agricultural output will vary with the stage of economic development of a country. De Azuh (2010)Â opine that increases in agricultural output is brought about by increase in land and livestock grazing, but in an economy like Nigeria, the agriculture sector has suffered setbacks attributed to widespread poverty and food insecurity.
Though the value of livestock resources have grown in absolute terms in recent years, its overall contribution to agricultural output remains dismally low (CBN, 2006). Agricultural sector output contribution to GDP, averaged 50.2% during the period 1960-70. However, its contribution declined persistently, reaching a low level of 21.8% in 1976-1980 before an upward swing to 39.6% in 1981-1985.
The contribution increased further to 41.2% in 1986-90 following the introduction of SAP in 1986, but declined to 38.7% in the subsequent period. Its contribution has remained at an average of 41.6 percent between 2001- 2010, 36.79% in 2014, and 35.76% in 2015.
In Nigeria notwithstanding the relevance, the livestock sub sector tends to be playing a decreasing role on national development in view of its contribution to the country’s Gross Domestic Product (GDP). For instance the percentage of agriculture to (GDP) was high as 19%  in 1983 and 1984, however its share contribution dropped to 10% in 1998,  and further low to 6% in 2004 and 2005. and further to 5.6 % in 2011, 3.39,% in 2012,then 4 .99% in 2013, and 2014, 5.9% Similar trends were recorded in the sub sector percentage contribution to the countries non-oil, where percentage share contribution of 4% and 2% as at 2004 and 2005 were recorded respectively.
In terms of aggregate growth, Nigeria’s agriculture has not been stagnant, and the index of livestock production for 1998, 1999, 2000 and 2001 were 180.4, 181.3, 190.7 and 195.8 percentage respectively.(CBN, 2001).
The declared aims of Nigeria’s national agricultural policy include attain food security, increase production and productivity, generate employment and income, as well as expand exports and reduce food imports thereby freeing resources for critical infrastructure development and delivery of social services, The government seems to attribute the unsatisfactory state of Nigeria’s agriculture to its subsistence-orientation.
The efforts of previous governments are characterized as having treated agriculture purely as a development issue. Hence the focus shifts to the role of agri-business. Specifically, the Agriculture Transformation Action Plan, launched in August 2011. Agricultural policies provide among others, for adequate financing of agriculture.
The role of livestock production on agricultural sector in diversification of economy cannot be over emphasized, given that it guarantees food security of any nation. This work however examined effect of livestock production on agricultural output and economic growth, in Nigerian economy.
1.2 Statement of the Problem                                                                           Â
Prior to the discovery of oil in the 1970s, the agricultural sector was the back bone of the Nigerian economy with livestock production accounting for a well-developed domestic agricultural market. The general decline in agricultural share of GDP is, therefore, not because the industrial and manufacturing sector increased its share, but due to neglect of the agricultural sector as the country relied heavily on crude oil; amidst marginalization of agriculture by successive government in Nigeria since the 1970’s.
It was therefore not surprising that the neglect of the sector has undermined food security and exacerbated structural imbalances that have constrained economic growth and development in the country (CBN, 2010). Livestock production in Nigeria has been under the traditional transhumane methods of the migrant cattle Fulanis.
This is an age-long ‘cultural method’ of livestock production reflecting long term adjustments to limits imposed by climate and other ecological factors. However despite this sound potential for growth in the domestic market, Nigeria experiences a drastic decline of agricultural production in livestock industry, following the discovery oil.
Livestock marketing in Nigeria has traditionally taken the form of movement of animals from the livestock-producing areas, mainly in the north, to the southern terminal markets. The animals transported are mainly cattle, sheep, and goats.
Livestock marketing and processing problems, in Nigeria include poor packaging facilities for products in the value chains, lack of cold storage facilities in abattoirs at wholesale and retail markets, and absence of standards for meat and other livestock and poultry products, and lack of adequate funding, public veterinary services have declined over time in Nigeria.
Livestock diseases account for 30 to 40 percent of the losses in the productivity of animals in Nigeria, Presidential Committee on livestock (PCOL 2003). Grazing Reserves and Stock Routes, transhumant pastoralists own over 85 percent of the ruminant population in Nigeria, the pastoral system relies on natural range land for ruminant feeding, the system operates under difficult arid and environmental conditions, Diminishing availability of water and grazing pastures poses a continuing challenge, which increased cropping activities have reduced the available water and grazing resources, leading to conflicts among fullani herds men, and farmers.
In order to improve the agricultural sector generally, the government introduces several agricultural policies for instance, the government of General Olusegun Obasanjo government in 1976 introduced operation feed the nation (OFN), in 1980 Alhaji Shehu Shagari government introduced Green Revolution (GR). General Muhammad Buhari’s administration in 1984 introduced ‘Go back to land programme’, while General Sani Abacha’s government in 1993 came up with the Family Economic Advance Programme (FSP), with major objectives of achieving self-sufficiency in food supply and security, increased production and processing of export crops and livestock using modern production and processing technologies, as well improving the quality of life of rural farmers.
Despite all these efforts by various policy regimes, the agricultural sector has not been able to achieve the expected results as food supply is unable to keep pace with demand (Diao, Tanko ,2006) Food and Agriculture Organisation.
Despite these policies the agricultural sector contribution and overall economic development has not been adequate, the roles of animals in development programmes is generally underated in Nigeria, and these established policies are not critical in achieving sustainable agricultural development. Ogur (2003) stressed that much efforts have been made by the Federal and State Governments to enhance animal production and other agricultural activities.
However efforts being made to improve the level of domestic production have not yielded the desired result since the 1970s. Cattle rearing for instance, witnessed only slight modernization with the establishment of cattle ranches in Gombe, Manchock, Mokwa, Obudu and Upper Ogun and Osun states, while sheep and goats are scattered throughout the different ecological zones in the country (Akinwumi and Ipki 2001).
The livestock sector’s contribution to Nigeria’s economic growth and sustained development remains to be fully exploited. Local supplies have been inadequate with an estimated 30% of the livestock slaughtered imported from neighboring countries.
1.3Research Question                                                                             Â
Given the foregoing, the following research questions are established for the study.
What is the effect of livestock production on agricultural output in Nigeria?
What is the effect of livestock production on the economic growth in Nigeria?
1.4 Objectives of the study
The main aim of the study is to examine how livestock production affects agricultural output and economic growth in Nigeria, however the following specific objectives are delineate:
Examine the effects of livestock production on agricultural output in Nigeria.
Evaluate the effects of livestock sub sector on economic growth in Nigeria.
5 Research HypothesisÂ
In order to achieve the objectives of this study, the following null hypothesis are to be tested:Â Â Â Â Â Â
Livestock production has no significant effect on agricultural output in Nigeria.
Livestock production has no significant effect on economic growth in Nigeria.
 1.6 Significance of the Study
A study of this nature is significant as a major component of agricultural economies of the developing countries, and goes beyond well direct food production and sales of livestock and their products as it provides revenue to the economy as well as income to farmers. For decades much research have focused on technical aspects of livestock productivity attempting to solve challenges related to animal breading nutrition and health.
Agriculture is one of the most important sector in the Nigerian economy. Since the sector’s performance directly mirrors that of the overall economy, the results of the study are expected to assist researchers, policy makers, and relevant government agencies in their planning, research, development, and the use of livestock productivity towards attaining food security.
For a proper design of growth enhancing policies, policy makers should know what accounts for variation in growth rates across periods and the roles of the various factors in economic growth. They should know the production structures and factors underlying them. With the necessary information, policy makers can evaluate the possible effects on productivity.
Analyzing and determining the economic value of livestock animals would provide a better understanding of the contribution of the socio economic, non marketed functions to the survival of small scale mixed farmers. These socio economic functions may also contribute much more to the understanding of livestock production systems than production of meat, milk, traction and provision of farm inputs.
The information from this study is hoped to provide a better understanding of appropriate public and private policies benefiting both producers, technical staff, researchers and policy makers and also building up on the existing body of knowledge.
The study stands to benefit the government since the research intends to bring out forth, ways to increase agricultural output, both for the purposes of consumption and exportation which will bring an increase in favorable balance of payment for the nation.
This research will be beneficial to researchers, and teachers in enabling them understand and explore opportunities of agricultural sector and create more awareness about livestock, its process production and also to help them understand the importance of farming in the context of livestock to governments, organization, small enterprise, farmers, agricultural development banks, agencies and serve as a spring board, for further research in this area of study.
1.7 Â Scope of the study
The study focuses on the effect of livestock production in Nigeria with specific reference to how livestock is affecting economic growth and agricultural output in Nigeria. The scope covers a period of  34  years, 1981 – 2015. In the context of this study, agricultural output and economic growth is proxy by the Gross Domestic Product for the period under observation.
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