TECHNICAL EFFICIENCIES OF POULTRY TOLL FEED MILLS IN KADUNA AND PLATEAU STATES, NIGERIA
Abstract
This study investigated the technical efficiencies of poultry feed firms in Kaduna and Plateau States, Nigeria. Primary data were collected using a structured questionnaire from a sample of 51 poultry feed firms, analyzed using descriptive statistics and stochastic frontier technical efficiency function. The findings indicate that poultry feed firms have an average production capacity of 4.2 tonnes per day, operating on an average of 5 days per week using not more than 1 shift per day. The feed mills were found to be technically inefficient with mean technical efficiency of 0.67. The determinants of technical efficiency were found to be operating capacity, distance to major market, number of employees, and availability of ingredients in required quantity as well as ownership type. The high cost and adulteration of ingredients, low patronage, and high competition from larger firms amongst others were factors identified as constraints to efficient poultry feed production. The study recommends that the firms should improve on the deployment of labour as well as improved wages, outsource for cheaper inputs or buy input in group to derive economies of scale and also increase their production in other to potentially maximize output.
References
Abdullah, R.B., W.K. Wan Embong and H.H. Soh. (2011). Biotechnology in animal production in developing countries. Proceedings of the 2nd International Conference on Agricultural and Animal Science, November 25-27, 2011, Singapore 88-91
Adetutu, O. H., Carolyn, A. A., Olubunmi, L. B., and Stephen T H, (2017). Elasticity of Production and Profitability of Feed Milling Systems of Poultry Egg Farmers in Ogun State, Nigeria. International Journal of Livestock Research. 7 (11): 132 – 142
Agbota, S. (2016). Nigeria’ll earn over N800 billion from animal feed industry. Available at https://www.sunnewsonline.com/nigeriall-earn-over-n800bn-from-animal-feed-industry/
Akerele, E. O., Yangomodu, O. D., Solana, O. I. and Ogungbayi G. B. (2019). Efficiency of indigenous poultry feed production enterprises in Yewa division Ogun state, Nigeria. International Journal of Commerce and Economics. 1(3): 20-26
Coelli, T.J. and Battese, G.E (1996): Identification of factors which influence the
Technical Efficiency of Indian Farmers. Australian Journal of Agricultural
Economics 40: 103-128
Eniola.O. (2019). Poultry Farmers Perceived Constraints and Unwholesome Practices among Feed Mill Industries in Ibadan Metropolis. International Journal of Environment, Agriculture and Biotechnology (IJEAB). 4 (4): 93 – 98 available at : http://dx.doi.org/10.22161/ijeab.443
Food and Agriculture Organization (2018). Africa Sustainable Livelihood (ASL) 2050: Livestock and Livelihoods Spotlight, Nigeria Cattle and Poultry Sectors.
FAOSTAT. (2018). Food and Agricultural Organization of the United Nations. www.fao.org/faostat/en/#data/QA
Highnet Resources. (2022). Business plan for small or toll feed mill: floating fish feed (312 to 624 tons per day). Available at: https://highnetresources.com/product/business-plan-for-small-or-toll-feed-mill-floating-fish-312-624-tons-per-year/
Mengesha, M. (2012). Climate change and the preference of rearing chicken constraints and traditional management practices in Jamma District, South Wollo, Ethiopia. Journal Livestock Research Rural Development 23(2): 135-143
Munkaila, A. A., Taiwo, A. G., and Adeeko A. L, (2014). Economic Analysis of Feedmill Industries in Ogun and Oyo States, Southwest of Nigeria. Research Journal. 2(1): 24-30
Nigerian Institute of Animal Science NIAS. (2021). Registration of feed premises. Available at https://nias.gov.ng/registration-of-feed-premises/
Oladejo, J. A. (2012), Economic Analysis of Feed Mill Industry in Lagos State, Nigeria.
International Journal of Research in Management Economics and Commerce.2 (4): 39 -52 Abdullah, R.B., W.K.
Wan Embong and H.H. Soh. (2011). Biotechnology in animal production in developing countries. Proceedings of the 2nd International Conference on Agricultural and Animal Science, November 25-27, 2011, Singapore 88-91
Oyedele G. O., (2016). Animal Feed Risk Assessment. Nigerian Institute of Animal Science. Lecture for ASAN-NIAS 2016 Joint Annual Meeting Port Harcourt.
SAHEL. (2015). An Assessment of the Nigerian Poultry Sector. http://sahelcp.com/anassessment of-the-nigerian-poultry-sector/. SAHEL 11: 1-3.
Sani I. (2015): Analysis of Production Efficiency of Poultry Feed Industries in Nigeria. An unpublished Ph.D. Thesis. Department of Agricultural Economics and Rural Sociology, A.B.U. Zaria
Sani I., Rahman S.A., Damisa M.A., Atala T.K., Sambo I.J., Makama S.A., and Hassan A.A. (2017). Profitability among toll feed mills in Nigeria. Journal of Agricultural Education. 7(2): 1-12.
Swain , K. B. (2017). Low cost feed formulation for rural poultry production. ICAR- Short Course on empowering farmwomen through livestock and poultry intervention. Available at https://www.reseachgate.net/publication/3166714_low_cost_feed_formulation_for_rural_poultry_production/
Taylor, G.T. and Shonkwiler, J.S. (1986). Alternative Stochastic Specification of the
Frontier Production Function in the Analysis of Agricultural Credit Programs
and Technical Efficiency, Journal of Development Economics. 21: 149-160
Copyright (c) 2022 FUDMA JOURNAL OF SCIENCES
This work is licensed under a Creative Commons Attribution 4.0 International License.
FUDMA Journal of Sciences
