Production Risks and Technical Efficiency of Commercial Laying Hens in South West Nigeria: A Stochastic Production Frontier Approach

Abstract

This study was carried out to examine production risks and technical efficiency (TE) of laying hens farmers (LHF) in Southwest Nigeria Data were collected using structured questionnaire on LHF socio-economic characteristics (age, poultry farming experience, education, household size, sex, marital status), production risks, flock size, input (pullets, drugs, water, feed), output (eggs, spent layers and waste), and their prices. A three-stage sampling procedure was used. Lagos and Oyo States were purposively selected being the major egg producers in the region. Fourteen Local Government Areas (LGAs) were randomly selected using the list of registered farmers of the Poultry Association of Nigeria (PAN): Lagos (6), and Oyo (8). A total of 507 LHF were randomly selected (Lagos 198) and (Oyo 309) proportionate to the size of registered members of PAN in each LGA. Data were analysed using descriptive statistics, and stochastic frontier production function. Average stock size and farming experience were 3017.0±587.3 and 11.4±5.7 years, respectively. The most prevalent production risks among the LHF were attack by predators, pest, and disease infestation. Age (β=-0.135), education (β=1.180) and livestock insurance (β=-0.572) reduced the probability of exposure to production risks, while household size (β=-0.075), access to extension (β=-0.159) and distance to residence (β=-0.324) increased the probability of LHF exposure to production risks. The TE for LHF was 0.37, indicating that farmers were operating at 63.0% below efficiency frontier. Age, farming experience, access to credit and household size significantly influenced TE in Nigeria. Therefore, policy intervention such as affordable livestock and insurance could improve technical efficiency of laying hen farmers.