Profit efficiency of layer production in Ghana
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Date
2021
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Publisher
Sustainable Futures
Abstract
This study assesses profit efficiency and its determinants of intensive housing system of layer production in
Ghana. A normalized translog stochastic profit frontier model is employed using cross-sectional data of 300 layer
producers in nine districts of Brong Ahafo and Greater Accra regions. The results show that the costs of feed and
labour are the most significant factors negatively affecting the profit levels of layer producers. All the input
variables respond positively to layer output. Layer producers are about 54% profit efficient and characterized by
increasing returns to scale. However, training in poultry farming, farmer-based organization membership, pro vision of extension service, gender, experience, housing type and mortality rate are the key factors that signif icantly explain the variations in profit efficiency. The study concludes that on average, layer producers are
operating with profit gap of about 46%. The implication of the findings is that training of layer producers by
extension services (veterinary officers) in early detection of poultry disease and control are key to reducing
inefficiency level to achieve higher profits. Membership of associations by layer producers is key to increasing
efficiency in poultry production.
Description
Research Article
Keywords
Stochastic profit function, Poultry, Layer, Layer egg production, Ghana