ABSTRACT
The study focused on market
age, enterprise size and relative efficiency in broiler production in Imo State
. The main aim was to determine resource use efficiencies in broiler brooding
and rearing enterprises as well as large-scale and small-scale outfits in the
two enterprises. Using multi-stage sampling technique, the
study area was zoned into three using the existing zoning arrangement of the
Imo State Agricultural Development Programme (ADP). A total of nine L.G.As were
randomly selected and a total of 180 broiler farmers (made up of 90 brooders
and 90 rearers) were selected. A set of structured questionnaire was
administered on the farmers to obtain required information. Data were analysed
using simple statistical tools, regression models, additive multiplicative
dummy variable models, profit function technique and enterprise analysis.
Results showed that broiler production was profitable but rearing birds to
maturity was more profitable than brooding birds and selling at four weeks old.
Large-scale rearing of birds was more profitable than small-scale outfit. In brooding
enterprise, no remarkable difference in profit margin existed between
large-scale and small-scale. Broiler rearing farmers were found to be more
technically efficient than the brooding farmers and small-scale rearers were
more technically efficient than large-scale ones. The implication is that
technical efficiency may not increase by increasing size of operation in
rearing broiler. In brooding, large-scale outfit was more technically efficient
than small-scale. Technical efficiency may be increased by increasing size of
operation in broiler brooding business. None of the farmer groups achieved
absolute allocative efficiency. They therefore did not maximize profit. However
brooding farmers were more allocatively efficient than the rearing farmers. Large-scale
rearers were more allocatively efficient while small-scale brooders were more
allocatively efficient in brooding enterprise. The implication is that in
broiler rearing business, allocative efficiency may be increased by increasing
size of operation. Brooding farmers were found to be more economically
efficient than rearing farmers. Small-scale brooders were more economically
efficient than large-scale counterpart. Allocative efficiency may not be
increased by increasing size of operation in broiler brooding. None of the
farmer groups operated at constant returns to scale. Brooding farmers operated
at increasing returns to scale while rearing farmers operated at decreasing
returns to scale. Brooding farmers by operating at increasing returns to scale
means that they grossly under-utilized resources, they had opportunity to
increase output by increasing input use. The rearing farmers over-utilized some
resources. It was recommended that farmers should brood and rear their stock to
maturity to avail themselves the opportunity of allocative and economic
efficiencies of brooding and technical efficiency and high profit margin of
rearing.
CHAPTER ONE
Introduction
1.1 Background
Information
Nigeria, one
of the developing countries of the world with rapid population growth, is faced
with the task of providing adequate food for her citizenry. While food
production increased at the rate of 2.5%, food demand
In
realization of the importance of animal protein, various governments in Nigeria
have inaugurated programmes at the national, state or community levels to
encourage mass production of livestock. Such programmes included the
micro-credit scheme for livestock production and establishment of livestock
parent/foundation stock at the community level by the United Nations
Development Programme (UNDP).
Poultry is
an example of such community level livestock. Poultry is a general name for
several kinds of birds that are useful, mainly as food to man which include
domestic fowl, duck, turkey, guinea fowl, and goose (Ayivor and Hellins, 1986)
and they are reared for other useful purposes such as meat, eggs and feather
(Walter, 1976; Eze, 1991). Poultry is widely grown in Africa, Nigeria and Imo
State. Sonaiya (2000) pointed out that there were 82.4 million chickens in
Nigeria, 11% (i.e. 10m) of which were for commercial purposes. Livestock
statistics by RIM (1992) showed that there were 13.8m cattle, 34.4m goats, 22m
sheep, 3.4m pigs, 104.3m local poultry, 20m exotic poultry, and 1.7m
domesticated rabbits in Nigeria. Also, Imo State Ministry of Agriculture and
Natural Resource (MANR, 2004) showed that there were 6.35m poultry, 1.1m
cattle, 1.5m sheep, 2.85m goats, 3.32m pigs and 54,000 rabbits in the state.
Poultry has
some advantages of being good converters of feed into usable protein in meat
and eggs; low production cost per unit relative to other livestock; meat which
is tender, palatable and acceptable; short production cycle
In the
recent time, there has been recorded improvement in poultry production in
Nigeria in that poultry eggs’ and meat’s contribution to the livestock share of
the Gross Domestic Product (GDP) increased from 26% in 1995 to 27% in 1999
(CBN, 1999). This improvement can further be enhanced by proper analysis of
resource use productivity and efficiencies in broiler production.
Broiler is a
meat type chicken bred for marketing at early age and matures faster than other
types of chickens (Williamson and Payne, 1977). In the livestock market today,
broilers are offered for sale at different ages and sizes depending on
circumstances and purposes. The market age in broiler production is the age at
which producers target to offer their stock for sale. Most outstanding among
them are:
i.
four weeks brooded (brood and sale);
ii.
seven to 12 weeks reared (mature
types); and
iii.
above 12 weeks reared (over-aged).
Broiler producers show their
interests in the production of one or a combination of any of these three. On
this, Oluyemi and Roberts (1979) pointed out that the exact time for marketing
broilers depended on different marketing situations involving the relative
costs of chicks and feeds and market preferences. The broiler producers also
operate at various scales and use various techniques and available resources to
achieve their production goals. Anthony (2001) considered those farmers producing
not more than 500 birds as small-scale farmers; those producing between 501 and
1000 birds as medium-scale and those producing from 1001 and above as
large-scale; farmers. The definition of farm size or scale of operation has
varied in efficiency literature, as what is considered large or small-scale is
relative depending on the agricultural system setting (Ohajianya, 2002).
However, the most useful economic definition of....
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