ABSTRACT

The technical, economic and allocative efficiencies as well as the profitability of micro poultry production in Abia State were evaluated. A multi-staged stratified random sampling technique was used in selecting one hundred and twenty (120) broiler producers from the three agricultural zones in the state. A well structured questionnaire was used in collecting data on the socio-economic characteristics of the respondents, oUtput, inputs, and their prices. Descriptive statistics such as means, frequencies and percentages were used in analyzing the data on the soclo-econornic variables. The cobb Douglas and transcendental logarithmic functional forms of the stochastic frontier production functions were estimated using the maximum likelihood estimation technique to obtain the technical, allocative and economic efficiencies of the farmers. The generalized likelihood ratio estimation was used in testing hypoth'ses of full technical, ailocative and economic efficiencies while t-test statistic was employed in testing their determinants. Socio-economic determinants influencing efficiencies were also studied. The results show that majority of the broiler producers were males (80%) and 45% of them were between the ages of 41 and 50 years. A large percentage (55.83%) had university education while 91.67% had less than 5 years of enterprise experience with an average of 2 years. The results also showed that technical efficiency was influenced by labour, feed, vaccine and depreciation while major determinants were age, education, household size, labour source and extension visits. Allocative efficiency was influenced by wage rate, price of feeds, price of vaccine and depreciation while major determinants were age, education, House hold size and extension visits. Economic efficiency was found to be determined by age, enterprise experience, education, lahour source, access to credit and membership of co-operative societies. The tranlog stochastic frontier functional model was adjudged the best fit for both the technical ar:d Econonic efficiencies based on its high values of log—likelihood functions, number of significant variables and appropriateness 01 a priori expectations. The results further showed that farmers were not technically, allocatively and economically efficient. They would enjoy cost savings of about 7.09%, 6.59% and 16.66% to achieve technical, allocative and economic efficiencies respectively. The null hypotheses of full technical, allocative and economic efficiencies were rejected which implied that there is room for efficiency growth. The results also showed that the net profit accruing to the enterprise was two hundred and thirty one thousand, eight hundred and sixty nine naira, eighty four kobo (N231, 869.84). Several policy recommendations were made including the provision of adequate incentives and supporting services to poultry farmers, which would help to boost productivity of the enterprise. Keyword: Efficiency, profitability; micro-poultry, Abia State.