OUTPUT SUPPLY AND INPUT DEMAND RESPONSE OF POULTRY EGG FARMERS: EVIDENCE FROM NIGERIA

Abstract

This research measured the output supply and input demand response of poultry egg production in South-western Nigeria. Specifically, the research noted both elasticities of output supply and input demand for egg production, as well as the short run profit value. This is necessary due to the acute shortage of information on the study area’s elasticity of output supply and input demand for egg production. A well-structured questionnaire and in-person interviews were used to gather data from the 360 egg producers that made up the sample size. The respondents were chosen using a snowball sampling technique. Descriptive and inferential statistics were employed to evaluate the data. By taking the first derivative, six equations were constructed from the generalized Leontief restricted profit function. The parameter estimates of the formulas were examined using Seemingly Unrelated Regression (SUR). Results demonstrated that the egg’s own-price elasticities were positive as predicted, at 0.434, and the supply of spent layers was, at 1.12. Additionally, all estimated own-price elasticities of input demands were discovered to be negative, as predicted. The study found that input demands were highly responsive to own-price change except for the day-old-chicks. The results also showed that labour was the most highly elastic input employed compared to other factors. The cross-price effects between the feed demand and day-old-chicks was found to be complements, while the cross-price effect between the feed demand and labour price was found to be substitutable. The study, therefore, concludes and suggests that price elasticities of demand for labour, feed and vaccines in poultry egg farming are keys for policy formulations to stimulate competitiveness in poultry industry.