Production Efficiency of Credit and Non- Credit Users of Poultry Egg Farmers in Ogun State, Nigeria:A Data Envelopment Analysis (DEA) Approach

Abstract

This study analyzed the production efficiency of credit users and non-credit users among poultry egg farmers in Ogun state, Nigeria. The study made use of primary data via questionnaire administration. A multi-stage sampling technique was used to randomly select 120 farmers. Technical, allocative and economic efficiencies were assessed using Data Envelopment Analysis. Factors affecting Production Efficiencies of poultry farmers were determined by Tobit regression method. The result revealed the mean technical efficiency of 62.67%, allocative efficiency of 71.05% and the overall economic efficiency of 42.16%. This implied that poultry farmers could still increase their output by 37.33% or increase revenue by 28.95% showing that maximum output level can be achieved. The mean economic efficiency score of credit users was 0.42 while that of non-credit users was 0.39, this further showed that poultry farmers that used credit were more economically efficient than their counterparts who did not. Tobit regression analysis revealed that an increase in age (p <0.01), number of birds stocked (p<0.01), credit amount (p<0.05) will increase the likelihood of being technically and allocatively efficient while credit amount (p<0.05) increased the likelihood of being economically efficient. However, access to extension agents (p<0.1) by farmers, tends to make farmers economically inefficient. Age, farming experience, educational level, flock size, interest rate were factors affecting the production efficiency of credit and non-credit users of poultry egg farmers. Based on the results, appropriate policy on provision of credit should be made available for poultry egg farmers in order to increase their production efficiency.