PROFIT EFFICIENCY OF POULTRY FARMERS IN IREPODUN LOCAL GOVERNMENT AREA OF KWARA STATE, NIGERIA

Abstract

The study was conducted to determine the profit efficiency of poultry production in Irepodun Local Government Areas in Kwara State, Nigeria. A total of 85 poultry farmers were selected using a two-stage sampling procedure. Primary data were collected with a structured questionnaire. Descriptive statistics, farm enterprise budgeting technique and stochastic profit frontier model were used to analyze the data collected. Poultry farming was profitable in the area with a gross margin, net farm income and gross ratio of ₦204,692.76, ₦193,492.78 and 0.4923, respectively. Number of brood stock, price of produce, cost of labour and feed, farming experience, access to extension and borrowed capital were significant factors influencing the level of the farmers’ profit efficiency. About 66% of the poultry farmers were profit efficient. The most prevalent constraints faced by the farmers by weighted mean were high cost of feed (3.89), high cost of acquiring credit facilities (3.87), climate change variability (3.87), limited capital (3.52), middlemen exploitation (3.42) and inadequate extension and advisory services (3.41). The study concluded that the farmers were not profit efficient. Thus, it was recommended that farmers should reallocate their resources to attain profit efficiency.