Technical Efficiency of Pig Production in Enugu North Agricultural Zone of Enugu State, Nigeria
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International Journal of Research and Review www.ijrrjournal.com E-ISSN: 2349-9788; P-ISSN: 2454-2237 Original Research Article Technical Efficiency of Pig Production in Enugu North Agricultural Zone of Enugu State, Nigeria Ume SI1, Ezeano CI2, Onunka B N1, Agu C I3 1Department of Agricultural Extension and Management. Federal College of Agriculture, Ishiagu Ivo Local Government. Area of Ebonyi State, Nigeria 2Department of Agricultural Economics and Extension. Nnamdi Azikiwe University Awka. Anambra State, Nigeria 3Department of Animal Health and Production. Enugu State Polytechnic Iwollo, Enugu State of Nigeria. Corresponding Author: Ume SI ABSTRACT Technical efficiency of pig production in Enugu North Agricultural Zone of Enugu State, Nigeria was studied. The specific objectives of the study are to estimate the technical efficiency in pig production in Enugu North Agricultural zone of Enugu State and access the determinants of technical efficiency in the study area. Purposive and multi-stage sampling techniques were used to select 60 pig farmers. A structured questionnaire and oral interview were used to collected information based on farmers‟ socioeconomics and other related information necessary for the study. The Cobb-Douglas frontier production function was used to address the objectives of the study. The result shows that feed intake, water and labour input affected pig farmers‟ output at different risk levels respectively. Drugs and medication was negative but significant. The result furthermore shows that the estimated farm level technical efficiency of pig farmers ranged from 23% and 96% with a mean of 75%. Also, household size, educational level, membership organization and rearing experience were the socio-economic determinants of technical efficiency of pig farmers in the study area. There is need to enhance farmers‟ access to adult education, encouraged farmers to form cooperative society and ease of accessibility to productive inputs. Key word: Technical Efficiency, pig Production, Stochastic frontier, Production function. INTRODUCTION pig is becoming very popular because of The important of animal protein and among others fast growth rate, large litter its inadequacy in the dietary of most size, good convert of feed to meat, high households in developing countries of carcass dressing percentage, the pork is Africa and South East Asia are variously tender and nutritive in relation to high documented (Okolo, 2011; Ume, et al; protein and B-vitamins than any other 2016). For instance, Food Agriculture livestock (Adeschinwa, et al; 2003; John, Organization, (FAO), (2008) reported that 2007; Ume, et al; 2018). However, in animal protein origin is capable of Nigeria and other developing countries, predisposing victims to low productivity, piggery industry is confronted with myriads high infant mortality, malnutrition and of problems resulting in its low productivity related diseases. This animal protein origin and inefficiency in resource use. Piggery could be acquired in Nigeria through mainly industry has features of having high cattle, pig, poultry, goat and sheep (Ajala, et production costs, low profit margins and al; 2007). However, among these animals, high feed bills (Adeschinwa, et al; 2003, International Journal of Research & Review (www.ijrrjournal.com) 61 Vol.5; Issue: 9; September 2018 Ume SI et.al. Technical Efficiency of Pig Production in Enugu North Agricultural Zone of Enugu State, Nigeria Holness, 2007; Ume, et al; 2018). This MATERIALS AND METHODS situation is more pronounced especially The study is conducted in Enugu with the economic recessions that the North agricultural zone of Enugu State, country is experiencing now. However, one Nigeria. It is one of the agricultural zones in of the surest way of liberating the farmers Enugu State. The zone is located between especially the small scale farmers that latitudes 6o 31‟ and 7o 6‟ North of Equator constitutes the bulk of the farming and longitude 6o 54‟ and 7o 54‟ North East population from low productivity is through of Greenwich Meridian. The population of enhancing their efficiency of resource use Enugu North agricultural zone is 1,190,908 (Onyenweaku and Effiong, 2000; Ewuziem, persons which comprise 678,015 males and et al;2009). 700,403 females (National Population The efficiency is the ease of Commission (NPC), 2006). The land area is transforming given inputs into outputs in a about 3,404km2 and about 11,000 production process (Coelli, 1994; Ume, et households. The inhabitants apart from al;2016). Efficiency according to Farrel, farming are also engage in petty trading, (1957) and Heady and Olayide, (1982) commercial driving, mechanics and could be in form of technical, allocative and tailoring. economic efficiency. Technical efficiency Enugu North consists of six (6) refers to the ability of firms to achieve Local Government Areas (LGAs) namely; maximum output at minimal waste at given Igbo-etiti, Igbo-eze South, Igbo-eze North, technology (Jondrow, et al 1982; Coelli, Nsukka, Udenu and Uzo-uwani LGAs. 1994) Allocative efficiency refers to the Enugu North agricultural zone is made up of choice of optimum combination of inputs eight (8) blocks comprising Igbo- Etiti, consistent with the relative factor prices Igbo-Eze South, Igbo-Eze North, Uzo- (Meeusen and Vander, 1977; Effiong and Uwani block I, Uzo-Uwani block II, Nsukka Idiong; 2008; Ume, et al; 2016).While, block I, Nsukka block II and Udenu . economic efficiency is the ability of a farm Purposive and multistage random stage to maximize profit (Onyenweaku et al, sampling techniques were used to blocks, 2010; Ume, et al;2012). It is imperative to communities and farmers. In the first stage, state that information on measuring two (2) blocks namely; Nsukka 1 and technical efficiency of pig farmers using Udenu were purposively selected for the stochastic frontier method is dearth in the study. This was as a result of many piggery study area, therefore, the need to abridge farms found in those places. In stage two, in this research gap is mandatory. This could each of the blocks selected, three help in making available information for communities were randomly chosen for the making sound management decision as study. In the third stage, ten (10) pig farmers relates to resource allocation by policy were randomly selected from each of the makers and programme planners. communities. This brought to a total of sixty Furthermore, this study could serve as a (60) respondents for the detailed study. A guide for scholars interested in the subject structured questionnaire and oral interview area and for students‟ teaching purpose. were used to gather information as relates to The specific objectives of the study primary data. Cobb- Douglas - technical are to estimate the technical efficiency in efficiency and the determinant models were pig production and estimate the used to address the objectives of the study. determinants of technical efficiency in Theoretical Framework. Enugu North Agricultural zone of Enugu A stochastic production function is given by State. Yi = ƒ(Xij β) exp (Vi-Uj), = 1, 2, ……………n………….. (1) where Yi is output of the i-th farm, Xi is the vector of input quantities used by the i-th International Journal of Research & Review (www.ijrrjournal.com) 62 Vol.5; Issue: 9; September 2018 Ume SI et.al. Technical Efficiency of Pig Production in Enugu North Agricultural Zone of Enugu State, Nigeria farm, β is vector of unknown parameters to Z5 = Other costs (Depreciation costs on be estimated; ƒ( ) represents an appropriate fixed inputs) (N) function (e.g. Cobb Douglas, translog, etc). Vi = Random error The term Vi is a symmetric error which Ui = Technical inefficiency accounts for random variation in output due to factors beyond the control of the farmer, Determinants of Technical Efficiency: while the term Uj is a non negative random In order to determine factors contributing to variable representing inefficiency in the observed technical efficiency, the production relative to the stochastic frontier. following model was formulated and The random error Vi is assumed to be estimated jointly with the stochastic frontier independent and identically distributed as model in a single stage maximum likelihood N(0, 0u2) random variables independent of estimation procedure using the computer the Uis which are assumed to be non- software frontier version 4.1 (Coelli, 1994) negative truncation of the N(0, 6u 2) as follows: distribution (i.e. half-normal distribution) or TE = a0 + a1β1 + a2β2 + a3β3 +a4β4 + have exponential distribution(Forsund, et al; …….…a9β9 ….……(4) 1980; Aigner, Lovell and Schmidt, Where TE = Technical efficiency of the i-th 1977).The stochastic frontier was farmer independently proposed by (Bravo- Ureta β1 = Age of farmers (Years) and Vander, 1997). Technical efficiency β2 = Educational Level (Years) according to Heady and Olayide (1982) is a β3 = Household size (No) measure of firm‟s success in producing β4 = Membership of farmers maximum output from a given set of association/cooperatives(Member; 0 and input.Bravo – Ureta and Pinheiro, (1997) otherwise; 0) described technical efficiency as attainment β5 = Access to Extension services (Access; of production goal without wastage. 1, otherwise; 0) Technical efficiency (TE) = Yi/Yi β6 = Rearing Experience (Years) + β7 = Access to credit (Access; 1 and = ƒ(Xi, β) exp (Vi-Ui)/ ƒ(Xi, β) exp (Vi) = otherwise ;o) (exp) (-Ui) ...................(2) Where Yi = observed Output While a0, a1 a2 ………a9 are the parameters Yi = Frontier