Analysis of Profit Efficiency of Broiler Production In Delta State, Nigeria

The Study examined profit efficiency of broiler farmers in Delta State, Nigeria. The specific objectives of the study were to: describe socio-economic characteristics of broiler farmers in the study area, estimate the level of profit efficiency of broiler farmers, examine the determinants of profit efficiency of broiler farmers and identify the constraints faced by broiler farmers in the study area. Multistage sampling procedure was used in the selection of 240 broiler farmers. Data for this study was collected from primary source. The data collected were analysed using both descriptive and inferential statistics. The result of the study showed that computed average age of broiler farmers was 43 years. Male dominated broiler production in the study area with 54%. The computed average farming experience was 5 years. Majority of the broiler farmers (65.8%) used the deep litter system; 34.6% raised less than 200 broilers. The Maximum Likelihood (ML) estimates of the Cobb-Douglas Stochastic Frontier Production parameters for broiler production showed that the coefficient of flock size and feed have positive signs and are statistically significant at 1% level of profitability. Analysis of profit efficiency showed that educational level decreased farmer’s profit inefficiency and invariably increased their profit efficiencies, while age and credit access increased their profit inefficiencies at 1% level of probability. The return-on-investment value of 1.29 indicated that broiler production was profitable in the study area. The business was profitable with about 29 kobo profit per N1.00 investment. The study recommends that government should design policies aimed at subsidizing cost of production inputs like feed, drugs/medicine, day old chicks and target such policies at experienced broiler farmers to help increase profit efficiency and profitability of the enterprise.