Technical efficiency and profitability of backyard poultry farming in Ika South Local Government Area, Delta State, Nigeria

Abstract

The study focuses on the determination of technical efficiency and profitability of backyard poultry farming in Ika South Local Government Area, Delta State, Nigeria. There is a considerable amount of literature in the field of measurement of efficiency; however, the existing knowledge with respect to technical efficiency and profitability of backyard poultry farming in Ika South Local Government Area, Delta State is limited hence the need for the study. Multi-stage sampling procedure was used to select fifty respondents in the study area. Data was collected using questionnaire. Gross margin analysis and stochastic frontier production function were used to analyze the data. The study revealed that the sum of N57,897 was realized by the average backyard poultry farmer. Further investigation revealed that return on investment was N1.39. This implies that for every one naira invested in poultry production, there was a return of N1.39. This also implies that poultry production was profitable. The production frontier regression analysis also revealed that costs incurred on medication, water and light were positive significant determinants of output (return) while costs of feeds and labour were negative significant determinants of output. The variable costs made up of costs of medication, water and light (1.624101) (1.084313) were underutilized. There is need to increase the use of these resources. Similarly, the factors of productionlabour cost (-3.405360) (5.158468) and expenses on feeds (-3.36427) (10.76588) were over utilized. The use of these resources should be reduced. The result also showed their response were technically (55%) efficient.

Keywords: Technical efficiency, profitability, poultry, fixed cost, variable cost and output