Profit Efficiency and Sources of Inefficiency of Small-holder Ram Fattening Enterprise in Borno State, Nigeria

Abstract

This examine the profit efficiency and its determinants in ram fattening farms of Bama Local Government Area of Borno State, Nigeria, using the stochastic profit function analysis. Primary data were used for this study which was collected using the interview method. The data collected include those on the socio-economic variables of the ram fatteners, the cost of inputs used and price of output produced. The result revealed mean profit efficiency of 0.82, implying that there exists the scope of increasing efficiency by about 18%. The main variables contributing to inefficiency were household size, and educational qualification. The study recommends that the state governmentshould provide feed subsidy and formal loan to the fatteners in the study area in an effort to alleviate the endemic poverty in the state. Also, training and extension services should be provided to the fatteners to further improve their efficiency.