Home | Samaru Journal of Agricultural Education | Samaru Journal Of Agricultural Education | Abstract
Samaru Journal Of Agricultural Education

Year: 2017|   Volume No: 7|   ISSN: 0794 – 7860|   Page No: 1


AbstractFullText PDFReference
Title:  PROFITABILITY AND TECHNICAL INEFFICIENCY AMONG TOLL FEED MILLS IN NIGERIA

1 I. SANI, 2 S.A. RAHMAN, 3M.A. DAMISA, 3T.K. ATALA, 1 I.J. SAMBO, 1 S.A. MAKAMA AND 3A.A. HASSAN 

1NATIONAL AGRICULTURAL EXTENSION AND RESEARCH LIAISON SERVICES, ABU ZARIA 2 FEDERAL UNIVERSITY GASHUA 3 INSTITUTE FOR AGRICULTURAL RESEARCH/FACULTY OF AGRICULTURE. ABU ZARIA

ABSTRACT

 The study assessed the technical efficiency of poultry toll feed industries in Nigeria. It examined the efficiency of input used; profitability level;determinantsof profitabilityand constraints to feed production. Primary data were collected using a set of structured questionnaire from a sample of 134 toll mills from 12 states across the 6 geo-political zones of Nigeria. The data were analysed using descriptive statistics, net income and stochastic frontier analysis. The findings indicated that the toll feed mills were characterized with an average of 15 years milling experience, operating on average of 5days/week,producing an average of 16.5 tonnesof feed per day. The mills produced mainly feed in mash form for broilers, pullets, layers and cockerels withan average of N14, 277.07 profitfrom the production of 1000Kg of poultry feed and a return to Naira invested of N0.1766. The mills were found to be technically inefficient with mean technical efficiency of 0.82 which is below the frontier value of 1. The determinants of profitability include, distance to ingredient sources, source of power, number of months ingredients are available, access to credit, mill size. Some of the constraints to more efficient and profitable poultry feed production identified include: adulteration of feed ingredients, fluctuation in prices and seasonal nature of the ingredients availability. Based on the findings it can be concluded that feed production was profitable. It was therefore, recommended that the mills should have access to more credit facilities to ensure expansion and reduction of costs through bulk purchase and storage of feed formulation ingredients. 

SUMMARY:

Correspondence:
Printer:
Copyright: