Home / Agric Economics / ECONOMIC ANALYSIS OF POULTRY-EGG PRODUCTION IN BAUCHI LOCAL GOVERNMENT AREA, BAUCHI STATE, NIGERIA.

ECONOMIC ANALYSIS OF POULTRY-EGG PRODUCTION IN BAUCHI LOCAL GOVERNMENT AREA, BAUCHI STATE, NIGERIA.

 

Table Of Contents


<p>&nbsp;           <b>TABLE OF CONTENTS</b>&nbsp;</p><p>Title Page.......................................................................................................................i Declaration....................................................................................................................ii Certification..................................................................................................................iii Dedication....................................................................................................................iv Acknowledgements......................................................................................................v&nbsp;</p><p>Table of Contents........................................................................................................vii&nbsp;</p><p>Lists of Tables...............................................................................................................x&nbsp;</p><p>List of Figure................................................................................................................xi Abstract........................................................................................................................xii&nbsp;</p><p>

Chapter 1

Introduction.......................................................................................................1&nbsp;</p><p>1.1 Background of Information...............................................................................1</p><p>&nbsp;1.2 Problem Statement.............................................................................................2&nbsp;</p><p>1.3 Objective of the Study.......................................................................................5&nbsp;</p><p>1.4 Justification of the Study......................................... .........................................6&nbsp;</p><p>1.5 Hypothesis.........................................................................................................7&nbsp;</p><p>

Chapter 2

Literature Review...............................................................................................8&nbsp;</p><p>2.1&nbsp; Economic Importance of Poultry Production.....................................................8&nbsp;</p><p>2.2 Economies of Size in Poultry Production..........................................................10&nbsp;</p><p>2.3 Empirical Studies on Profitability of Poultry-Egg Production......................... 11</p><p>&nbsp;2.4 Conceptual of Framework................................................................................. 13&nbsp;</p><p>2.4.1 Concept of Technical Efficiency.......................................................................13&nbsp;</p><p>2.4.2 Factors Influencing Efficiency......................................................................15&nbsp;</p><p>2.5 Stochastic Frontier Production Function............................... .......................16&nbsp;</p><p> 2.5.1 The Stochastic Production Frontier Function................................................17&nbsp;</p><p>2.5.2 Application of the Stochastic Frontier Model................................................18&nbsp;</p><p>2.6 Problems Associated with Poultry Production...............................................20&nbsp;</p><p>

Chapter 3

Methodology...................................................................................................21&nbsp;</p><p>3.1 The Study Area................................................................................................21</p><p>&nbsp;3.2 Sampling Procedure.........................................................................................22&nbsp;</p><p>3.3 Method of Data Collection...............................................................................22&nbsp;</p><p>3.4 Analytical Techniques......................................................................................23&nbsp;</p><p>3.4.1 Descriptive Statistics............................................... ........................................23&nbsp;</p><p>3.4.2 Farm Budgeting Techniques.............................................................................23&nbsp;</p><p>3.4.3 Stochastic Frontier Production Function..........................................................26&nbsp;</p><p>3.4.4 5-Point Likert Scale...........................................................................................28&nbsp;</p><p>3.5 Definition and Measurement of Variables.........................................................28&nbsp;</p><p>

Chapter 4

&nbsp;</p><p> Results and Discussion......................................................................................30&nbsp;</p><p>4.1 Socio-economic Characteristics of Poultry-Egg Producers..............................30&nbsp;</p><p>4.1.1 Age Distribution of the Respondents................................................................30&nbsp;</p><p>4.1.2 Educational Status of the Respondents................................. ...........................31</p><p>&nbsp;4.1.3 Farming Experience of the Respondents..........................................................31&nbsp;</p><p>4.1.4 Gender..............................................................................................................32&nbsp;</p><p>4.1.5 Household Size of the Respondents.................................................................33&nbsp;</p><p>4.1.6 Marital Status of the Respondents....................................................................33&nbsp;</p><p>4.1.7 Membership of Cooperative Society.................................................................34&nbsp;</p><p>4.2 Scale of Operation of Poultry-Egg Production in the Study Area.....................34&nbsp;</p><p>4.3 Cost, Returns and Profitability of Poultry-Egg Production in the Study Area.....................................................-.........................................................................................................35 <br></p><p> 4.4 Test of differences in profitability from the different farm sizes....................... 39&nbsp;</p><p>4.5 Technical Efficiency Analysis............................................................................ 40&nbsp;</p><p>4.5.1 Estimates of the Stochastic Production Function........................... ……………40&nbsp;</p><p>4.5.2 Technical Efficiency of the Poultry-Egg Producers according to Farm Size............................................................................................................ 42&nbsp;</p><p>4.6 Factors Influencing Technical Efficiency of Poultry-Egg Farmers..................... 44</p><p>&nbsp;4.7 Elasticity of Production and Returns to Scale...................................................... 45&nbsp;</p><p>4.8 Constraints to Poultry-Egg Production in the Study Area................................... 46&nbsp;</p><p>4.8.1 Limited Finance.................................................................................................... 46&nbsp;</p><p>4.8.2 High Costs Inputs................................................................................................. 47&nbsp;</p><p>&nbsp;Scarcity of Raw Materials for Plants, Fixtures, Building a Equipment.............................................................................................................4 7</p><p>&nbsp;4.8.5 Inadequate Storage Facilities................................................................................48&nbsp;</p><p>4.8.6 Other Problems.....................................................................................................48</p><p>&nbsp;

Chapter 5

Summary, Conclusion and Recommendation.......................................................50&nbsp;</p><p>5.1 Summary...............................................................................................................5 0 <br></p><p> 5.2 Conclusion............................................................................................................5&nbsp;</p><p>1 5.3 Recommendations................................................................................................5 2 References............................................................................................................5 4</p><p>&nbsp;Appendix 1..........................................................................................................63&nbsp;</p><p>&nbsp;Appendix 2...........................................................................................................64 <br></p>

Project Abstract

<p>                    <b>ABSTRACT</b>&nbsp;</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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