PAPER TITLE :TECHNICAL EFFICIENCY AND PRODUCTION ELASTICITY OF BROILER PRODUCERS IN EDO STATE, NIGERIA

APPLIED TROPICAL AGRICULTURE | VOLUME 19 NUMBER 1 2014

Paper Details

  • Author(s) : Emokaro, C.O.* & Emokpae, O.P.
  • Abstract:

There is a pressing need to increase broiler output in Nigeria in order to meet the inadequate supply of animal protein. The relatively poor technology used in
smallholder farms results in significantly lower feed efficiency, marketing of low weight broilers at the end of fattening period and very high mortality rates. This
situation is mainly attributable to failure to exploit economies of scale and modern care systems such as fully automated feeding, which decreases feed waste. An
awareness of the implicit relationship between the resources and the product will stimulate the farmers to improve on their existing methods of production. This
will help in increasing production and productivity of the farmers at lower cost of production and hence increased profits. This study was designed to analyze the
farm level technical efficiency and production elasticity of broiler farmers in the study area. A multi-stage sampling procedure was used in selecting the 140
broiler farmers interviewed in this study, through a combination of purposive, random and snowball sampling techniques. The data that were used in this study
were collected from a cross - sectional survey of broiler farmers in the State via the use of a well structured questionnaire. Maximum likelihood estimates of the
parameters of the stochastic frontier production functions showed that all the coefficients of the variables of the production function conformed to a priori
expectations and were positive, with the exception of medication cost. The estimated coefficient of feed intake was 0.19 and it was significant (p ? 0.01). The
estimated coefficient of stock size was 1.03 and was significant (p ? 0.01). Results also showed that 82.9 % of the respondents had technical efficiency levels of
0.81 and above. Result of the diagnostic statistics indicated that there were technical inefficiency effects in broiler production in the study area, as confirmed by
the large and significant value of the gamma coefficient (0.74). Also, the generalized likelihood ratio was significant (p ? 0.01). The respondents were operating
at increasing returns to scale (stage 1 of the production function) as shown by the summation of the elasticities of the inputs which was greater than one (1.2). It
was concluded that some gaps exist at farm level technical efficiencies of broiler farmers in Edo State. Improved technical efficiency of broiler farmers can be
achieved in the study area by filling these identified gaps. Also, broiler farmers could benefit from economies of scale linked to increasing returns as a way of
enhancing production and ensuring the sustainability of the sector.