ECONOMIC ANALYSIS OF POULTRY-EGG PRODUCTION IN BAUCHI LOCAL GOVERNMENT AREA, BAUCHI STATE, NIGERIA.
Table Of Contents
- <p> <b>TABLE OF CONTENTS</b> </p><p>Title Page.......................................................................................................................i Declaration....................................................................................................................ii Certification..................................................................................................................iii Dedication....................................................................................................................iv Acknowledgements......................................................................................................v </p><p>Table of Contents........................................................................................................vii </p><p>Lists of Tables...............................................................................................................x </p><p>List of Figure................................................................................................................xi Abstract........................................................................................................................xii </p><p>
Chapter ONE
INTRODUCTION
- .......................................................................................................1 </p><p>
- 1.1Background of Information...............................................................................1</p><p>
- 1.2Problem Statement.............................................................................................2 </p><p>
- 1.3Objective of the Study.......................................................................................5 </p><p>
- 1.4Justification of the Study......................................... .........................................6 </p><p>
- 1.5Hypothesis.........................................................................................................7 </p><p>
Chapter TWO
LITERATURE REVIEW
- ...............................................................................................8 </p><p>2.1 Economic Importance of Poultry Production.....................................................8 </p><p>
- 2.2Economies of Size in Poultry Production..........................................................10 </p><p>
- 2.3Empirical Studies on Profitability of Poultry-Egg Production......................... 11</p><p>
- 2.4Conceptual of Framework................................................................................. 13 </p><p>2.
- 4.1Concept of Technical Efficiency.......................................................................13 </p><p>2.
- 4.2Factors Influencing Efficiency......................................................................15 </p><p>
- 2.5Stochastic Frontier Production Function............................... .......................16 </p><p> 2.
- 5.1The Stochastic Production Frontier Function................................................17 </p><p>2.
- 5.2Application of the Stochastic Frontier Model................................................18 </p><p>
- 2.6Problems Associated with Poultry Production...............................................20 </p><p>
Chapter THREE
RESEARCH METHODOLOGY
- ...................................................................................................21 </p><p>
- 3.1The Study Area................................................................................................21</p><p>
- 3.2Sampling Procedure.........................................................................................22 </p><p>
- 3.3Method of Data Collection...............................................................................22 </p><p>
- 3.4Analytical Techniques......................................................................................23 </p><p>3.
- 4.1Descriptive Statistics............................................... ........................................23 </p><p>3.
- 4.2Farm Budgeting Techniques.............................................................................23 </p><p>3.
- 4.3Stochastic Frontier Production Function..........................................................26 </p><p>3.
- 4.45-Point Likert Scale...........................................................................................28 </p><p>
- 3.5Definition and Measurement of Variables.........................................................28 </p><p>
Chapter FOUR
DATA PRESENTATION AND ANALYSIS
- </p><p> Results and Discussion......................................................................................30 </p><p>
- 4.1Socio-economic Characteristics of Poultry-Egg Producers..............................30 </p><p>4.
- 1.1Age Distribution of the Respondents................................................................30 </p><p>4.
- 1.2Educational Status of the Respondents................................. ...........................31</p><p> 4.
- 1.3Farming Experience of the Respondents..........................................................31 </p><p>4.
- 1.4Gender..............................................................................................................32 </p><p>4.
- 1.5Household Size of the Respondents.................................................................33 </p><p>4.
- 1.6Marital Status of the Respondents....................................................................33 </p><p>4.
- 1.7Membership of Cooperative Society.................................................................34 </p><p>
- 4.2Scale of Operation of Poultry-Egg Production in the Study Area.....................34 </p><p>
- 4.3Cost, Returns and Profitability of Poultry-Egg Production in the Study Area.....................................................-.........................................................................................................35 <br></p><p>
- 4.4Test of differences in profitability from the different farm sizes....................... 39 </p><p>
- 4.5Technical Efficiency Analysis............................................................................ 40 </p><p>4.
- 5.1Estimates of the Stochastic Production Function........................... ……………40 </p><p>4.
- 5.2Technical Efficiency of the Poultry-Egg Producers according to Farm Size............................................................................................................ 42 </p><p>
- 4.6Factors Influencing Technical Efficiency of Poultry-Egg Farmers..................... 44</p><p>
- 4.7Elasticity of Production and Returns to Scale...................................................... 45 </p><p>
- 4.8Constraints to Poultry-Egg Production in the Study Area................................... 46 </p><p>4.
- 8.1Limited Finance.................................................................................................... 46 </p><p>4.
- 8.2High Costs Inputs................................................................................................. 47 </p><p> Scarcity of Raw Materials for Plants, Fixtures, Building a Equipment.............................................................................................................4 7</p><p> 4.
- 8.5Inadequate Storage Facilities................................................................................48 </p><p>4.
- 8.6Other Problems.....................................................................................................48</p><p>
Chapter FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
- Conclusion and Recommendation.......................................................50 </p><p>
- 5.1Summary...............................................................................................................5 0 <br></p><p>
- 5.2Conclusion............................................................................................................5 </p><p>1
- 5.3Recommendations................................................................................................5 2 References............................................................................................................5 4</p><p> Appendix 1..........................................................................................................63 </p><p> Appendix 2...........................................................................................................64 <br></p>
Project Abstract
<p> <b>ABSTRACT</b> </p><p>This study is an Economic analysis of poultry-egg production in Bauchi LGA of Bauchi State. It examines, specifically, the socio-economic characteristics of the poultry-egg owners, profitability, technical efficiency (T.E.) as well as the scale of operations of poultry-egg production in the study area. Primary data were collected from the 32 poultry-egg producers in the study LGA. The data collected were subjected to descriptive statistics, farm budget technique and stochastic frontier production function. The findings indicated that most of the respondents (66%) were males and between 40- 49 years of age and with an average of 8 years experience in the business. Furthermore, Poultry-egg business in the area was found to be dominated by small scale poultry-egg farms which accounted for about 53% of the total farms. It was found that over 90% of the cost of production was on the variable inputs. The result also revealed that large farm had the lowest cost of production per bird (N3,453.21) and as the farm size decreases the total cost of production increases. Net Farm Income per bird was N1,360 for the small farm sizes N1,474 for the medium farm sizes and N1,463 for the large farm size. The small farm sizes made Rate of Return on Investment (RRI), Capital Turnover (CTO) and Profitability Index (PI) per bird of about 35%, N1.35 and N0.26. The RRI, CTO and PI obtained from the medium farm sizes were about 39%, N1.39 and N0.28. While RRI, CTO and PI for the large farm sizes were 42%, N1.42 and N0.30. These values imply that poultry-egg production was a profitable business in the area and large farm sizes were most profitable. Maximum Likelihood Estimate of coefficients of the stochastic frontier model for poultry-egg production in the study area shows that the estimated parameters were all positive. Only the parameters estimates of farm size, veterinary services, feed intake and labour were of statistically significant, indicating that they contributed incrementally to the total value of poultry-egg output in the study area. Productivity analysis showed a return to scale (RTS) of 0.89 indicating that the sampled poultry-egg farms operated in the rational stage II of the production surface. The large poultry-egg farms were most technically efficient with T.E. indices ranged from 56% to 95%. Analysis of inefficiency model shows that factors influencing T.E. were years of experience, access to credit, cooperative membership and extension contact. The study identified limited finance and high cost of inputs as the most serious constraints to the poultry-egg business in the area. It is recommended in the study that a modern feed mill should be established in the state by all stakeholders in the poultry sub-sector; extension agents should be encouraged; credit and inputs should be made available and affordable to poultry farm owners. INTRODUCTION The Nigerian Meteorological Agency has its fabrication workshop in Lagos, where the operational headquarters is located. The workshop was originally established to maintain conventional meteorological instruments. Shortly after the then Department of Meteorological Services under the ministry of Aviation became autonomous and transited to an agency (Nigerian meteorological Agency) in year 2002, the Director-General of the Agency,Mr.L.E. Akeh, introduced an awareness program by organizing lectures on service delivery and this led to an aggressive drive by members of staff to contribute their quota to the progress of the newly established Agency. <br></p>
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