Technical Efficiency and Profitability of Chicken Production in Kaduna State, Nigeria

ABSTRACT 

Achieving profitability in production is a great challenge facing chicken producers which is constrained by inefficiency and other challenges facing the chicken production industry. Technical efficiency in chicken was a strategy in mitigating the profitability problem. The study was based on technical efficiency of input on output, profitability, employment of labor in chicken production and optimal productivity of labor employed relative to cost and revenue in chicken production in Kaduna state, Nigeria. A cross sectional survey was adopted using questionnaires, farm records and interview administered on a sample of 166 chicken farmers in Kaduna State, Nigeria. The result revealed that there was profitability in chicken production in the study area, especially in layer production. The result further revealed that the mean of technical efficiencies in chicken production was 64% for pullet production, 73% for layer and 81% for broiler production which means inefficiencies existed in chicken production in the study area. Chicken production was a source of labor employment as revealed by the study. The optimal productivity of employed labor in chicken production differs from other researchers. The Average Total Cost (ATC) and Marginal Cost (MC) in chicken production decline as chicken output increases; the study also reveals that economies of scale existed in chicken production in the study area. MC, MR relationship revealed a profit maximizing position of chicken producers in the study area. The four alternate hypotheses tested for statistical significance in profit/net income between the categories of chicken farms, technical efficiency, employment of labor and optimal productivity of labor employed between the poultry producers were accepted. The study recommends input production within the state so as to improve profitability and reduce cost of inputs, adopt modern chicken production methods for enhanced technical efficiency and layer production should be encouraged due to its capacity of labor employment. Also optimal productivity of labor should be adhered to by the chicken producers in order to minimize cost and maximize profit.

TABLE OF CONTENTS

DECLARATION.......................................................................................................................i

DECLARATION B.............................................................................

ACKNOWLEDGEMENTS ...................................................................................................iv

TABLE OF CONTENTS ........................................................................................................v

LIST OF TABLES ..................................................................................................................ix

LIST OF ACRONYMS/ABBREVIATIONS........................................................................xi

ABSTRACT.......................................................................................................................... xiii

CHAPTER ONE ......................................................................................................................1

1.1 Background to the Study......................................................................................................1

1.2 Historical Perspective ..........................................................................................................1

1.3 Theoretical Perspective........................................................................................................3

1.4 Conceptual Perspective........................................................................................................7

1.5 Contextual Perspective.......................................................................................................14

1.7 Statement of the Problem...................................................................................................15

1.8 General Objective ..............................................................................................................16

1.8.1 Specific Objectives .........................................................................................................17

1.9 Hypothesis..........................................................................................................................17

1.10. Significance of the Study................................................................................................17

1.11 Scope................................................................................................................................18

1.11.1 Geographical scope.......................................................................................................18

1.11.2 Time scope ....................................................................................................................19

1.11.3 Theoretical scope ..........................................................................................................19

1.11.4 Content scope................................................................................................................20

LITERATURE REVIEW ........................................................................................................21

2.0 Introduction........................................................................................................................21

2.1 Poultry Production .............................................................................................................21

2.2 Employment Generation ....................................................................................................48

2.3 Related Studies and their gaps...........................................................................................55

2.0 Conceptual Framework......................................................................................................67

CHAPTER THREE: METHODOLOGY ................................................................................68

3.0 Introduction........................................................................................................................68

3.1 Philosophy..........................................................................................................................68

3.2 Research Design.................................................................................................................70

3.3 Research Population...........................................................................................................70

3.4 Sample Size........................................................................................................................70

3.4.1 Sampling Procedure........................................................................................................71

Selection criteria ......................................................................................................................71

3.5 Research Instruments.........................................................................................................71

Questionnaire ...........................................................................................................................72

Interview method .....................................................................................................................72

Measurement............................................................................................................................72

3.6 Reliability and Validity of the Instrument .........................................................................74

Validity ....................................................................................................................................74

3.7 Data Gathering Procedures................................................................................................75

3.7.1 Data Preparation..............................................................................................................76

3.8 Data Analysis.....................................................................................................................76

3.10 Ethical Consideration.......................................................................................................78

3.11 Limitation of the Study ....................................................................................................88

CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION OF

DATA ......................................................................................................................................79

4.0 Introduction........................................................................................................................79

4.1 Response Rate of the Distributed Questionnaires..............................................................79

4.2 Demographic Characteristics of the Respondents. ............................................................79

4.2.1 Age of the Respondents..................................................................................................80

4.2.3 Educational Level of Respondents..................................................................................80

4.2.4 Experience in Poultry Production ...................................................................................81

4.2.5 Farms Responded by returning the Questionnaires........................................................82

4.3 Objective One ....................................................................................................................84

4.4 Test of Hypothesis.............................................................................................................88

4.5 Objective Two....................................................................................................................89

4.6 Test of Hypothesis .............................................................................................................94

4.9 Objective Four ...................................................................................................................98

4.9.1 Optimum Labor employed in Broiler Production...........................................................99

4.9.2 Optimum level of Labor Employed in Pullet Production .............................................100

4.9.3 Optimum level of Labor employed in Layer Production..............................................101

4.9.4 The Cost and Revenue Analysis of Poultry Production in Kaduna state..........103

CHAPTER FIVE: DISCUSSIONS CONCLUSION AND RECOMMENDATION

5.0 Introduction.................................................................................

5.1 Discussion...................................................................................

5.1.1 Responses rate..........................................................................

5.1.2 Respondent Age.......................................................................

5.1.3 Educational Level of the Respondents.....................................

5.1.4 Years of Poultry Production years of Experience....................

5.1.5 Location Farm Respondents by returning the Questionnaires..........

5.2 Poultry Production Profitability..................................................

5.3 Factor Input and Output Efficiency in Poultry Production .........

5.4 Level of Employment generation by the different categories of Poultry Production .....................................................................

5.5 Optimum Labor employed in Poultry Production, Cost and Revenue.........

5.7 Conclusion ..................................................................................

5.7 Recommendations.......................................................................

5.8 Area for Future Research............................................................

APPENDIX I: REQUEST FOR PARTICIPATION .............................................................151

APPENDIX II: INFORMED CONSCENT FORM...............................................................152

APPENDIX III: QUESTIONNAIRE ....................................................................................153

APPENDIX IV: INTERVIEW GUIDE.................................................................................160

APPENDIX V: TIME FRAME .............................................................................................161

APPENDIX VI: PROPOSED BUDGET FOR THE RESEARCH ACTIVITY ...................162

APPENDIX VII: ANALYSIS OF VARIANCE ...................................................................163

APPENDIX VIII: MAP OF KADUNA STATE ...................................................................165

APPENDIX XI: CURRICULUM VITAE.............................................................................166