EGG PRICE RESPONSE TO INCREASE IN THE PRICES OF MAIZE AND SOYBEAN MEAL IN NIGERIA USING ECONOMETRIC TOOLS

Abstract

Poultry egg productionn depends greatly on maize and soybean meal which affect the price of egg directly. Egg has been confirmed as one of the cheapest sources of protein. This study was aimed at estimating the relationship between egg price (EP) response to maize price (MP) and soybean meal price (SBMP) changes in Nigeria from 1990 to 2021Time series data in respect of SBMP (N/Kilogramme), MP (N /Kilogramme) and EP (N /Crate) in local currency were obtained. Augmented Dickey Fuller (ADF) test and, the Johansen cointegration technique were employed to test for the stationarity of the variables and the long-run relationship between variables, respectively. Result of the study shows the presence of one co integrating long run equilibrium relationship between the variables. The Vector Error Correction Model (VECM) estimates showed that MP and SBMP had a negative influence on egg production which consequently transform to high price of egg. Policies on reduction of MP and SBMP should be implemented so as to reduce the EP and make the produce more available to the Nigeria populace.