Allocative Efficiency and Returns to Scale among Fadama II Broiler Farmers in Imo State, Nigeria

Abstract

This study investigated the efficiency of resource use and Returns to Scale among broiler farmers in Imo State. Data were collected through a multi-stage sampling from 50 broiler farmers in the State with the aid of structured questionnaire. Data collected were analyzed using descriptive statistics, Efficiency Index, Elasticity of Production technique and the Ordinary Least Square Regression model. The results from this study showed that 68% of the respondents engaged in farming as their primary occupation with mean age of 47.1 years and mean farm size of 563 birds. The farmers made an average Net Revenue of N291,192.10 with 66Kobo Return on Investment. Medication (significant at 1%), farm size (significant at 5%), feed and other inputs (significant at 1%) were the major factors affecting broiler output. The farmers operated at increasing Returns to Scale with 1.1408 Elasticity of Production (EP). It was concluded that broiler enterprise among the Fadama II farmers in Imo State is profitable but there is inefficiency in resource allocation. It was therefore recommended that the farmers either keep labour constant and increase their farm size or keep the farm size constant and decrease their use of labour input for increased profitability of their enterprises.

Keywords: Allocative efficiency, Returns to Scale, broiler production, Fadama II farmers