Vertical Integration and Technical Efficiency in Poultry (Egg) Industry in Ogun and Oyo States, Nigeria


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Vertical Integration and Technical Efficiency in Poultry (Egg) Industry in Ogun and Oyo States, Nigeria is a well-researched topic, it can be used as a guide or framework for your Academic Research.


This study aims at analyzing the economics of vertical integration in the poultry industry in Ogun and Oyo States. The study examines the production systems and analyses costs and returns to non-integrated and vertically integrated poultry farms. Primary data were generated using structured questionnaires in a field survey of 100 non-integrated poultry farms, 70 partially integrated poultry farms and 40 fully poultry integrated farms. The analytical techniques employed include descriptive statistics and stochastic production frontier function. Predicted technical efficiencies range between 65% and 97%. The results show that about 49% of the sampled poultry farms have technical efficiencies greater than 90% operating close to the technology frontier. The higher the level of vertical integration the greater the technical efficiency.


Poultry (egg) production is one of the major sub-sectors
in the Nigerian agricultural industry. Poultry egg, apart from
supplying protein is also a good source of lipids and
vitamins of high zoological value to man. The importance
of egg is also observed in its contribution as a major
ingredient in the baking of confectioneries and the use
of the egg albumen in the making of shampoo and in
bookbinding. Poultry production, in addition, contributes
to the nation’s gross domestic product (GDP), it provides
gainful employment and income to a sizeable proportion
of the population. In spite of this nutritional importance
of egg, egg production is grossly inadequate because
demand for egg in the country is much greater than
supply. This scenario implies that egg production has to
be increased to a sustainable level. To achieve
sustainability in egg production in Nigeria, the present
level of productivity and technical efficiency in the poultry
industry should be examined for the purpose of improvement.

The crux of the problem of growth in agriculture in
developing countries is how to increase output per unit
input (Singh, 1975). One way of approaching the
problem of increasing production is to examine how
efficient the farmers are using their resources, if
resources use is inefficient, production can be
increased by making an adjustment in the use of factors of
production in an optimal direction. In case it is efficient, the
only way for increasing production would be the adoption
of modern inputs and improved technology of production
Singh (Op. cit).


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Agricultural Economics

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