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