Profitability Analysis of Finishing Rations: The Case of Dorper Sheep Using the Internal Rate of Return

Abstract

Abstract

This study evaluated the profitability of locally formulated finishing rations to enhance sheep growth performance. Kenya, a net importer of meat and meat products, is projected to face increased demand due to rising incomes and urbanization. Sheep play a crucial role in food production, rural employment, and the national economy by converting roughage into meat, wool, and skin. The growing domestic and export demand for mutton necessitates the development of more efficient production systems. However, current production systems are constrained by low slaughter weights and extended timeframes to market readiness, with small ruminants requiring over two years to reach market weight. This study therefore, focuses on evaluating the profitability of Dorper sheep fattening under an intensive feeding  system using locally available, cost-effective feed resources. Thus, a Completely Randomized Design (CRD) was employed, assigning 10 groups of three sheep to different diets, including a control group. Data were analyzed using analysis of covariance (ANCOVA), with diet as the primary independent variable. The results indicated that Ration 8 significantly outperformed other diets, achieving the highest weekly average weight gain. Profitability analysis revealed an internal rate of return (IRR) of 22 per cent, suggesting that the investment would break even within 2.5 years. Ration 8 demonstrated both growth and economic benefits, providing a viable solution for improving sheep production. This study advocates for the promotion and commercialization of Ration 8 to enhance meat production, reduce imports, support rural livelihoods, and contribute to climate change mitigation. Future research should focus on investigating the nutrient composition, digestibility, and genetic interactions of Ration 8, along with long-term studies on its effects on meat quality, reproduction, and flock health.