Comparative Analysis of Production Efficiency of Government-Assisted and Unassisted Pig Farmers in Lagos State

Abstract

This study comparatively examined the efficiency of pig production among government-assisted and non-assisted farmers in Lagos State, Southwest, Nigeria. The study was based on primary data obtained in a cross-section survey of 120 pig farmers, 60 each drawn purposively from among the government-assisted (GAPF) and unassisted pig farmers (UAPF) in the state. The data were analysed by descriptive, budgetary and econometric (Stochastic Production Frontier) methods. The study revealed that, most of the pig farmers (67.7% of GAPF and 95.0% of UAPF) are men. Majority of the pig farmers (65.0% of GAPF and 55.0% of UAPF) are within 30 - 50 years age bracket; with as much as 83.3% of GAPF and 60.0% of UAPF, having no more than six years of experience in pig farming. However, most (95.0% of GAPF and 75.0% of UAPF) of the pig farmers had some tertiary education. Budgetary analysis revealed that an average GAPF incurred a total cost of N987,682 in producing N1,360,050 worth of pigs with a net farm income of N372,368 yielding 33.67% rate of returns on their investment during the 2008/2009 production season. His UAPF counterpart incurred a total cost of N727,860 in producing N938,000 worth of pigs with a net farm income of N210,140 yielding 31.73% rate of returns on during the same production season. The technical, allocative and overall economic efficiency estimates computed based on estimated Stochastic Production and Conditional Revenue Frontier models of the two categories of pig farmers revealed that GAPF are generally more efficient (with mean technical, allocative and overall economic efficiency index of 0.66, 0.68 and 0.48, respectively) than their UAPF counterparts (with mean technical, allocative and overall economic efficiency index of 0.53, 0.60 and 0.35, respectively). The differences in the production efficiency of the two categories of farms were found to be as a result of the institutional and infrastructural support received by GAPF which is not available to the UAPF.