Economic Analysis and the Determinants of Pig Production in Ogun State, Nigeria

Abstract

Abstract This study examined the economics and determinants of pig production in Ogun State, Nigeria using Obafemi Owode and Odeda Local Government in Ogun State, Nigeria where the enterprise is most prominent. The data used for the study were obtained from 60 respondents as there are very few farmers into this business in the state compared to other livestock production. Pig farmers were sampled through snowball sampling technique. The data collected were analyzed with descriptive statistics, budgetary, and Ordinary Least Square regression model. Results from the study revealed that the mean age of the respondents was 36.6 years and they were predominantly (81.7 %) male. Most (68.3 %) of the farmers had no access to credit with half of them married. On the cost and returns, returns on investment were positively associated with herd size, breed, and type of management system in the study area. When controlling for years of production experience and herd size, with every 1 naira increase in variable costs, the return on investment decreased by ₦0.879 ≈ $0.0044 (P < 0.01). Similarly, when controlling for herd size and variable costs, with every 1 year of increase in production experience, the return on investment increased by ₦1.85 ≈ $0.0092 (P < 0.01). When controlling for number of years of production experience and variable costs, with every 1 naira increase in cost of stock, the return on investment increased by ₦1,652.74 ≈ $8.22 (P < 0.05). Lastly, when controlling for number of years of production experience and variable costs, every increase of herd size of 1 pig resulted in a return on investment of ₦1, 502.14 ≈ $7.47 (P < 0.01). Level of pig production experience, herd size, variable costs items, cost of stock, and access to credit had significant influence on the production of pig in the study area. The study therefore recommends subsidization of input costs, the need for extension officers or experts to educate less experienced farmers on pig production and effective extension services targeted at raising technical knowledge of pig farmers towards effective productivity and profitability.