Economic analysis of allocative efficiency of resources use for pig production in Southeastern Nigeria

Abstract

This study was conducted to analyze the allocative efficiency of resource use for pig production in southeastern Nigeria. Four hundred respondents were selected using a random sampling technique. Primary data for the study were collected using a structured questionnaire and interview schedules. Frequency distribution table, percentage responses, principal component analysis, and an allocative efficiency model were used to analyse the data collected. The results showed that the majority of the respondents were aged (mean=47 years), educated (mean=9 years of formal education), had moderate household sizes (mean=6 people), were experienced in piggery (21-40 years), belonged to cooperative societies, and had limited access to credit. The result of the allocative efficiency showed that none of the sampled farmers achieved absolute efficiency of resource use as they either underutilized or overutilized the resources. The under-utilized resources were farm size (33.25), feed (0.88), medication (0.47), and labour (3.02), while capital (-2.69) was over-utilized. The limiting factors to pig production were poor access to credit (3.5472), high cost of feeds (3.3075), poor access to improved breeds of piglet (2.2822), poor access to information (2.0339), and water scarcity (2.1567) at (P<0.01). Conclusively, the allocative efficiency results show that none of the respondents were able to use resources as efficiently as possible since they either overused or underutilized them. Thus, there is a need to enhance pig farmers’ access to credit at a low interest rate, feed materials at a subsidized cost, and improved breeds of piglets at a moderate cost to enable them to attain absolute efficiency in their piggery endeavour.