Profitability and technical efficiency of battery cage egg production in Obafemi Owode Local Government Area of Ogun State, Nigeria
There is a shortfall in the supply of poultry egg which has resulted in the low consumption of eggs even though it is considered the most affordable source of animal protein to many households .Although there are numerous poultry farms producing eggs in Nigeria, many of them are not technically efficient in their production. This study examined the economic analysis of egg production under battery cage system in Obafemi Owode Local Government Area (LGA) of Ogun State, Nigeria. A two-stage sampling procedure was used to select two hundred and forty (240) poultry egg farmers randomly from the study area. Primary data collected was analysed using descriptive statistics, budgetary analysis and stochastic frontier production function analysis. The result revealed male dominance (62.5%) in poultry egg production and the average age of the farmers was 44.7 years. Most (85.8%) of the poultry egg farmers had formal education and the average household size was 7 persons. A total revenue of ₦4,246,149.91 and net income of ₦3,004,219.06 was earned by an average battery cage poultry farmer. The total cost of production was ₦1,241,930.85. The Benefit-cost ratio was calculated to be 3.42 and the gross ratio was 41%. The stochastic production function showed that quantity of feed, flock size and labour were significant. The inefficiency model revealed that level of education and years of farming experience were significant. The mean efficiency of poultry egg producing farms was 71.86%. The study recommended that poultry egg farmers in the study area should be encouraged to increase the quantity of feed given to their birds and their flock size for increased output.
Keywords: Poultry Egg Production, Profitability, Stochastic Frontier, Technical Efficiency
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