Technical efficiency and profitability of chicken production in Kaduna State, Nigeria
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Date
2019-11
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University, College of Economics & management.
Abstract
Achieving profitability in production is a great challenge facing chicken producers
which is constrained by inefficiency and other challenges facing the chicken
production industry. Technical efficiency in chicken was a strategy in mitigating the
profitability problem. The study was based on technical efficiency of input on output,
profitability, employment of labor in chicken production and optimal productivity of
labor employed relative to cost and revenue in chicken production in Kaduna state,
Nigeria. A cross sectional survey was adopted using questionnaires, farm records and
interview administered on a sample of 166 chicken farmers in Kaduna State, Nigeria.
The result revealed that there was profitability in chicken production in the study
area, especially in layer production. The result further revealed that the mean of
technical efficiencies in chicken production was 64% for pullet production, 73% for
layer and 81% for broiler production which means inefficiencies existed in chicken
production in the study area. Chicken production was a source of labor employment
as revealed by the study. The optimal productivity of employed labor in chicken
production differs from other researchers. The Average Total Cost (ATC) and
Marginal Cost (MC) in chicken production decline as chicken output increases; the
study also reveals that economies of scale existed in chicken production in the study
area. MC, MR relationship revealed a profit maximizing position of chicken
producers in the study area. The four alternate hypotheses tested for statistical
significance in profit/net income between the categories of chicken farms, technical
efficiency, employment of labor and optimal productivity of labor employed between
the poultry producers were accepted. The study recommends input production within
the state so as to improve profitability and reduce cost of inputs, adopt modern
chicken production methods for enhanced technical efficiency and layer production
should be encouraged due to its capacity of labor employment. Also optimal
productivity of labor should be adhered to by the chicken producers in order to
minimize cost and maximize profit.
Description
A dissertation presented to the college of economics and management sciences, in partial fulfillment of the requirements for the award of Doctor of Philosophy in Economics, Kampala International University, Uganda
Keywords
Technical efficiency, Profitability, Chicken production, Kaduna State, Nigeria