Profitability and Resource Use Efficiency of Poultry Egg Production in Yobe State, Nigeria

Okpachu S.A, Madu V. U.

Abstract

The study was carried out to determine the profitability and resource use efficiency of poultry-egg production in Yobe State. A sample of 200 poultry-egg farmers was selected by multistage sampling technique and data were collected by using a structured questionnaire. The data were analyzed using descriptive statistics, budgetary analysis, and Stochastic Frontier Analysis techniques. The study revealed that poultry-egg production enterprise is profitable in the study area. Maximum Likelihood Estimate of coefficients of the stochastic frontier model for poultry-egg production were all positive and the parameters estimates of farm size, veterinary services, feed intake and labour were statistically significant, indicating that they contributed incrementally to the total value of poultry-egg output in the study area. Analysis of inefficiency model shows that factors influencing technical efficiency were years of experience, access to credit, cooperative membership and extension contact. Recommendations include the establishment of feed producer cooperative society, provision of adequate and timely veterinary services, and access to credit, frequent extension contacts and adult education classes for the farmers.

Keywords

profitability; resource use efficiency; stochastic frontier model; technical efficiency

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