Analysis of Resource Use Efficiency and Elasticity of Production among Smallholder Broiler Producers in Ikwuano Local Government Area of Abia State, Nigeria

Year 2020, , 432 - 438, 15.12.2020

Ifeanyı Moses Kanu , Jude Chukwudi Nwaru

https://doi.org/10.31015/jaefs.2020.4.6

Cited By: 1

Abstract

Resource use efficiency is the extent at which a firm or production unit makes proficient decisions by utilizing limited resources to maximize profit. Elasticity of production is a measure of a firm's success in producing maximum output from a set of input. This research analyzed resource use efficiency and elasticity of production among smallholder broiler producers in Ikwuano LGA of Abia State, Nigeria. Specific analytical techniques employed was the production function analysis involving the four functional forms of linear, double log (Cobb Douglas), semi-log and exponential. This was used to obtain the parameters for the measurement of resource use efficiency among the broiler producers. The results of the analysis shows that resource use efficiency (r) was 1.064, 0.018, –0.046 and 0.049 for quantity of broiler produced (stock size), labour expenses, cost of medicines/drugs and feed expenditure respectively. Stock size and feed expenses had the highest efficiency index of 1.064 and 0.049. The least efficiency index was recorded for medicines/drugs with a negative value of –0.046 which implied that the resource use efficiency for medicines/drugs was grossly inefficient. The resource use efficiency for stock size/quantity of day-old-chicks shows that the resource was completely over used. The resource use efficiency with which poultry feeds were utilized shows that the quantity of feeds was over utilized. The elasticity of production of the smallholder broiler producers was 1.016 (ΣEp>1). This shows that, if all resources were to increase by 100%, output would increase by 101.6%. This implies that fixed resources (land, depreciated equipment) were abundant relative to variable resources (feed, day-old-chicks, medication and labour); yet, these fixed resources were not efficiently utilized due to lack of sufficient quantity of variable resources. There is a paramount need to increase variable resources in order to maximize profit.

Keywords

Resource Use Efficiency, Elasticity of Production, Production Function, Smallholder Broiler Producers, Abia State Nigeria

Supporting Institution

Michael Okpara University of Agriculture Umudike, Abia State, Nigeria

References

• Adinya, I. B., Kuye, O. O Awoke, M. U Ajayi, S. Ele, I. E. Ogbonna, K. I. Akpet, S. O. and Agba, O. A. (2008). “ Production Function Analysis of Cassava Sole Cropping Systems in Akwa Ibom State , Nigeria”. Global Journal of Pure and Applied Sciences. Vol. 14(1):13-17.
• Afolabi, J. A. (2002). “An Introduction of factors affecting Productivity of Livestock Farmers in Ondo State, Nigeria”. A paper presented at the 27th Annual Conference of Nigeria Society for Animal Production, FUTA, Akure.
• Carlson, C. D. V. (1989). Child Maltreatment, Theories and Research on the causes and Consequences of Child abuse and neglect, Cambridge University Press, U. K.
• Farrell, M. (1957), "The Measurement of Productive Efficiency," Journal of the Royal Statistical Society, Vol. 120, No.3, Series A (1957), pp. 253-281.
• Federal Government of Nigeria - FGN, (2009). Nigeria Population Assessment 2009. The National Bureau of Statistics in Collaboration with the World Bank, pp: 225.
• Ghadoliya, M. K. (2000). Economic viability of layer farming in the state of Goa. Indian J. Poult. Sci., vol. 35(1): 73-76.
• Iheke, O. R. (2006) “Gender and Resource Use Efficiency in Rice Production Systems in Abia State of Nigeria”, M. Sc. Thesis, Department of Agricultural Economics, Michael Okpara University of Agriculture, Umudike, Nigeria.
• Koutsoyiannis, A. (1977). “Theory of Econometrics”. Published by Macmillan pp1-667.
• Kuriuki D. K, Ritho C. N and Muneik C. M. .(2008). Analysis of the Effect of Land Tenure on Technical Efficiency in Smallholder Crop production in Kenya. Conference on International Research on Food Security, Natural Resource Management and Rural Development. Tropentag.
• Mbanasor, J. A. and Chidebelu, S. A. N. D. (2001) “Economic Analysis of Cassava based Farming in South Eastern Nigeria under SAP” African Journal of Root and Tuber Crops Vol.4; No.2
• Nandwa, S. M., Kanyajua, S. M. and Thuranira, E. G. (1997): Soil Phosphorus Recapitalization of Western Kenya soils with Minjingu Rock Phosphate; Some Evidence of Limited Soil Phosphate Availability & Maize Response to Fertilizers Application.
• Nwaru J. C. (1993). Relative Production Efficiency of Cooperative and Non- cooperative Farms in Imo State, Nigeria. Msc Thesis, Department of Agricultural Economics, Federal University of Technology, Owerri, Imo State, Nigeria.
• Nwaru, J. C. (2005). Determinants of Farm and Off-Farm Incomes and Savings of Food Crop Farms in Imo State, Nigeria: Implications for Poverty Alleviation. The Nigerian Agricultural Journal, 36, 26 – 42.
• Oladeebo, J. O., and Ezekiel, A. A. (2006). Economic Efficiency of Maize Farmers in Oyo West Local Government Area of Oyo State, Nigeria: Proceedings of the 2nd Annual Conference on Agriculture Research for Development in Nigeria. 24th May, 2006. School of Agriculture and Agricultural Technology, Federal University of Technology, Akure, Nigeria, pp: 186- 191.
• Onyenweaku, C. E., Igwe, K.C. and Mbanasor, J. A. (2004). “Application of the Stochastic Frontier Production Function to the Measurement of Technical Efficiency in Yam Production in Nasarawa State, Nigeria”. Journal of Sustainable Tropical agricultural Research, Nigeria 13: 20 25.
• Ramrao W, Tiwari Y. S. P. Sharma, S. Saraswat, R. Gupta, R. (2008). Integration of crop-livestock-poultry-duck farming system by large farmers in the Plain tribal areas of Chhattisgarh in Central India. Livestock Research for Rural Development 20 March 2008.