Profit efficiency in broiler production in Akwa Ibom State, Nigeria

Abstract

The study estimated the profit efficiency and its determinants in broiler production in Akwa Ibom State of Nigeria using the stochastic frontier profit function approach. A multi- stage random sampling method was used to collect data from sixty(60) broiler farms in the study area for the production year 2004.The stochastic frontier profit function was used to analyze profit efficiency results for broiler production as well as the factors influencing efficiency levels in the study area. The analysis of data revealed that labour cost (wage rate), price of feeds/feed supplements, price of drugs /medication, capital inputs and farm size were the major factors determining profit level. Furthermore, level of education, farming experience, extension contact and gender variables were shown as major factors influencing their efficiency levels. The mean economic efficiency (MEE) is 81.0% implying that profit efficiency could be increased by 19.0% through better use of available resources. International Journal of Agriculture and Rural Development Vol. 7(1) 2006: 72-79