Technical Efficiency of Broiler Contract Growers in Chegutu District of Zimbabwe: A Stochastic Frontier Analysis

Abstract

Zimbabwe has witnessed a steady growth in broiler contract farming post the land reform programme which has brought in new players for which little is known about their level of productivity when compared to traditional commercial broiler producers. The purpose of this study was to determine the technical efficiency of broiler contract growers in Chegutu district of Zimbabwe. Specific objectives for the study were to establish socio-economic characteristics of boiler contract growers, estimate their technical efficiency and establish the determinants of technical efficiency. A population of 54 growers under one contract farming arrangement was studied. Cross sectional data was collected using a structured questionnaire and the stochastic frontier analysis was used to analyse the technical efficiencies and the determinants of technical efficiency. Broiler contract farming is dominated by male growers who constitute 72% of the contracted farmers. Significant factors influencing output were found to be batch size, feed quantity and transport cost. The broiler contract growers were found to be highly efficient with a mean technical efficiency of 97.1% ranging from 88.9%-99.6%. Grower residence on the farm and grower management of daily operations were found to significantly reduce technical inefficiency while technical inefficiency increases with grower age and key employee experience. The study recommends that there is need to expand broiler contract farming as it is highly efficient. The government must also put in place measures that encourage young smallholder farmers to venture into broiler contract farming as they are more efficient when compared to older farmers. Measures should also be put in place to encourage more female farmers to venture into broiler contract farming.