Allocative Efficiency in Layer and Broiler Production in Sokoto State, Nigeria

Abstract

The study was conducted to among others, to examine the allocative efficiency of layer and broiler enterprises in Sokoto State. Stochastic frontier production function was used to analyse the data. Farm level survey data from 135 each of layer and broiler farmers were obtained using well-structured questionnaire between June and November, 2013. The parameters were estimated simultaneously with those of the model of inefficiency effects using the maximum likelihood estimation technique. The study revealed that the farmers were not fully allocatively efficient in their production activities, with mean allocative efficiency of 0.91 and 0.80 for layer and broiler farmers, respectively. The study further revealed that the farmers were constrained with problems of insufficient capital, adverse weather conditions and non-remunerative prices of poultry products among others. Based on the findings, it was therefore recommended that for poultry farmers to increase their profitability level, they should try to formulate their feeds by using locally available ingredients to reduce feed cost which constitute the highest percentage of total variable costs.