Analysis of Economic Efficiency of Broiler Production in Adamawa State, Nigeria

This study examines the analysis of economic efficiency of broiler production in Adamawa State, Nigeria. The specific objectives were to describe the socio-economic characteristics of broiler producers, determine costs and returns to broiler production, determine the technical, allocative and economic efficiencies of broiler production, identify the type of management system that exist in the study area, and identify problems associated with broiler production in the study area. Multistage random sampling technique was adopted to select 240 respondents. Descriptive statistics, gross margin analysis and stochastic frontier production functions were used in analysing the data. Socio-economic analysis revealed that 83.80% were male. 57.90% had age range of 41-50 years with mean age of 43 years. 90.00% were married. 54.20% had household size of 1-6 people the average household size is 6 persons. 77.50% had one form of education or the other. 34.60% had farming experience of 7-9 years with mean rearing experience of 7 years. 58% sources their chicks from industry. 47.90% had extension contact. 59.60% depend on their personal savings. Gross margin analysis indicates that, the average gross margin per broiler was ₦3,253.88. The net farm income per bird was ₦2,890.04. The rate of return on every naira invested was found to be ₦0.60. The stochastic frontier production function analysis showed that stock size was statistically significant at 1%. Feeds is positive and statistically significant at 5%. Family labour was positive and statistically significant at 1%. The inefficiency model shows that age and household size are significant at 1%. Sigma squared was 0.0670 and statistically significant at 1%. Gamma value was 0.7999. Stochastic frontier cost function analysis revealed that, cost of day-old chicks, feeds, cost of housing and cost of hired labour were statistically significant at 5%. The estimate of sigma squared was 0.0694 and is significant at 1%. Gamma value was 0.8335. The computed mean technical efficiency was 58.29% while the minimum and maximum efficiencies were 29.17% and 99.99% respectively. The mean allocative efficiency was 48.27% and the minimum efficiency was 10.17%, while maximum efficiency was 99.64%. The economic efficiency had 71.11% and 99.92% as minimum and maximum efficiencies with the mean economic efficiency of 84.53%. Majority 98.70% of the respondents adopt the method of deep litter. 91.67%, 77.08%, and 70% indicated that they experienced great constraints due to Inadequate and high cost of feeds, Inadequate capital, and Inadequate extension services respectively Keywords: Adamawa State, Broiler, Economic, Efficiency, Poultry