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Profitability and allocative efficiency of exotic chicken enterprises in Delta State, Nigeria.

Abstract

The purpose of this research was to estimate the resource allocation efficiency and profitability of exotic chicken enterprises in Delta State, Nigeria. A multistage sampling procedure was adopted to pick a sample of 120 farmers from whom data were elicited using structured questionnaire. Data were analyzed using descriptive and inferential statistics. The findings indicate that the average age of respondents was 43 years; majority (85%) of respondents were males with 16 years' experience in exotic chicken production; 75% were married and 48% had secondary education. The mean household size was 5 persons. Budgetary analysis showed a net return of ₦930,700.00 per annum and return on investment was 1.73 per naira. This means that exotic chicken production is profitable. The double log regression model result shows that cost of day old chicks, feed, drugs and vaccines, labour, shelter and equipment significantly influenced exotic chicken production. The resource use efficiency result infers that DOCs and drugs and vaccine were under-utilized while feeds, labour and housing and equipment were over-utilized by the farmers. The elasticity of production was 1.08. This is increasing returns to scale. This paper concludes that poultry farmers were inefficient in the application of productive resources and recommends capacity building on resource use for farmers. We recommend that credit facilities and specific training opportunities on resource use be extended to farmers to enhance their exotic chicken production efficiency.