Firm Efficiency and Return to Scale in Layer Production Among Smallholders in Jos-North, Nigeria

Abstract

Layer production depends on many factors, and it is an excellent source of nutritious animal protein (meat and eggs). Empirical knowledge of the determinants of firm efficiency improves productivity in poultry-egg production systems. Therefore, this study analysed firm efficiency and return to scale in layer production among smallholders in Jos-North, Plateau State, Nigeria. Primary data collected via two-stage cluster sampling were evaluated using descriptive statistics, regression, and elasticity of production analysis. The results revealed that average flock size, feed quantity per cycle, medication cost, labour and capital requirement was 105 birds, 2,750kg, N 17,250, 1095 person-days and ₦330,750, respectively. The coefficient of determination (R2) is 0.768, indicating that variables in the regression model explain 77% of the variation in layer production. Moreover, the coefficient of variables including flock size (-0.446), feed quantity (0.791), medication cost (0.165), labour (0.275) and capital (-0.131) were significant determinants of layer production. The estimate of return to scale was 0.654(ρ<1), indicating decreasing returns. In addition, the major constraints of layer production include the high cost of feeds (91.3%), inadequate capital (80%), disease outbreaks (70.8%) and high medication and equipment costs (61.3%). This study recommends improved input supply and subsidies; access to farm capital, commodity markets and farm cooperatives; adoption of modern technology, practices and provision of technical support to enhance firm efficiency and optimize productivity.