Profit efficiency of small scale layer producers in some selected local government areas in Sokoto state, Nigeria

Abstract

The study investigated the profit efficiency of small scale layer producers in some selected Local Government Areas (LGAs) in Sokoto State, Nigeria. The LGAs were purposively chosen based on high concentration of poultry farmers in these areas. A total of 120 respondents were selected randomly for this study. Data collection lasted from July to September, 2012. Data were analyzed using descriptive statistics, net farm income and stochastic frontier profit function models. Although layer enterprise was found to be a profitable venture, producers were found to be operating below the economic frontier given a mean profit efficiency value of 0.74 (i.e. 74%) suggesting a scope for improvement by allocating existing resources more efficiently. Age, experience, credit, household size, gender and membership of association were found to be significant determinants of profit efficiency. The study recommends the stimulation of the domestic production of maize to curtail rising feed costs. There is also the need for extension education in the area of efficient resource management and cost saving strategies in layer production to raise farm incomes and profit.