ABSTRACT

The study estimated the technical and economic efficiencies of production for pigs, rabbits, broilers and egg laying enterprises in Akwa — thorn State of Nigeria, employing stochastic frontier production and profit functions. A total of 240 livestock farmers across the six agricultural zones ofthe state were purposively selected using a well- structured questionnaire. Information was sought on the socio- economic characteristics and other quantitative variables àf interest. Descriptive stttistical tools such as percentages, frequencies, were used to analyze the socio- economic characteristics of the respondents while the stochastic frontier production and profit functions were used for estimating technical and economic efficiencies of these enterprises in the study area. The analysis of data on technical efficiency revealed that labour, feeds! feed supplements and farm size were the major factors that determined the level of output of these enterprises while labour costs, price of feeds / feed supplements, farm size and to some extent price of drugs and medication were important determinants of profit level as well. Furthermore, level of education, farming experience, membership of cooperative society, extension contact and gender were shown as major factors influencing both technical and economic efficiency of the enterprises. The mean technical efficiencies for pigs, rabbits, broilers and egg laying enterprises are 84.0%, 62.0%, 90.0%, and 91.0% while the mean economic efflciencies are 83.0%, 68.0%, 81.0% and 65.0% respectively. This implies that the mean efficiency levels for pigs, rabbit, broilers and egg-laying enterprises could be increased by 16.0%, 38.0%, 11.0% 11.0% for technical efficiency and by 17.0%, 33.0%, 19.0% and 35.0% for economic efficiency respectively, through efficient use and utilization of available resources. The maximum technical efficiency level attained by an individual farmer in these enterprises are 98.0%, 92.0%, 98.0%,99.0% and for maximum economic efficiency levels, the results are 99.0%, 94.0%,95.0%,88.0% respectively. In essence, none of these enterprises achieved maximum production and profit efficiency. The sum of output elasticities which denotes returns to scale were 0.789, 1.293,. 0.799 and 1.246 for pigs, rabbit, broilers and egg enterprises respectively, denoting decreasing returns to scale for pig and broiler enterprises and increasing returns to• scale for rabbit and egg- laying enterprises. The results suggest that efficiency of production in the enterprises could be enhanced through good and adequate utilization of improved livestock inputs, and, recommended livestock production teôhnologies. Farmers in the livestock sector need educational exposures. In x essence, policy options were fully made and if properly implemented will enhance the efficiency of production in the enterprises and also the state economy in general.