IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/163706.html
   My bibliography  Save this article

Profit Efficiency In Broiler Production: Evidence From Greater Accra Region Of Ghana

Author

Listed:
  • Tuffour, Michael
  • Oppong, Boahen Atta

Abstract

The study examines profit efficiency and its determinants in broiler production in the context of profit maximization as an incentive for optimum production. The study uses the stochastic frontier approach with the application of the Cobb – Douglas profit function. A cross sectional data was obtained from one hundred poultry producers in Greater Accra Region using a multistage sampling method. The results of the study indicated that price of labor significantly reduced profit but the price of day old chick increased profit. The result further revealed that broiler producers were able to realize 54% of their frontier profit on the average. Number of years of experience in broiler production was found to reduce inefficiency whilst farms owned by sole proprietors were less economically efficient. The study recommends that the inputs should be made available to farmers at competitive prices and the quantity of labor use should be declined because the current level is uncompetitive. Training should also be provided to less experienced farmers to enable them adopt the best poultry farming practices.

Suggested Citation

  • Tuffour, Michael & Oppong, Boahen Atta, 2014. "Profit Efficiency In Broiler Production: Evidence From Greater Accra Region Of Ghana," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(1), pages 1-9, January.
    • Handle: RePEc:ags:ijfaec:163706
    DOI: 10.22004/ag.econ.163706
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/163706/files/vol2.no1.pp23.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.163706?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    2. Munir Ahmad & Ghulam Mustafa Chaudhry & Mohammad Iqbal, 2002. "Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 643-663.
    3. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
    4. repec:aer:wpaper:154 is not listed on IDEAS
    5. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    6. Jabbar, Mohammad A. & Islam, S.M.F. & Delgado, C. & Ehui, Simeon K. & Akanda, M.A.I. & Khan, M.I. & Kamruzzaman, M., 2005. "Policy and scale factors influencing efficiency in dairy and poultry production in Bangladesh," Research Reports 182868, International Livestock Research Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hatzizisis, L. & Dotas, V. & Zagorakis, K. & Gourdouvelis, D. & Dotas, D., 2019. "Technical Efficiency Measurement in Broiler Chicken Production System: A Case Study in Epirus, Greece," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
    2. Roy, Manish & Mazumder, Ritwik, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.
    3. Tom Kompas, 2001. "Catch, Efficiency and Management: A Stochastic Production Frontier Analysis of the Australian Northern Prawn Fishery," International and Development Economics Working Papers idec01-8, International and Development Economics.
    4. Roberto Furesi & Fabio Madau & Pietro Pulina, 2013. "Technical efficiency in the sheep dairy industry: an application on the Sardinian (Italy) sector," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 1(1), pages 1-11, December.
    5. Lazović-Pita Lejla & Šćeta Lamija, 2021. "A Stochastic Frontier Approach to Measuring Inefficiency of Local Communities in Bosnia and Herzegovina," South East European Journal of Economics and Business, Sciendo, vol. 16(1), pages 18-29, June.
    6. Francisca Pacheco & Rafael Sánchez & Mauricio G. Villena, 2021. "Estimating local government efficiency using a panel data parametric approach: the case of Chilean municipalities," Applied Economics, Taylor & Francis Journals, vol. 53(3), pages 292-314, January.
    7. Nazneen K. Chowdhury & Tom Kompas & Kaliappa Kalirajan, 2010. "Impact of control measures in fisheries management: evidence from Bangladesh's industrial trawl fishery," Economics Bulletin, AccessEcon, vol. 30(1), pages 765-773.
    8. Madau, Fabio A., 2011. "Parametric Estimation of Technical and Scale Efficiencies in Italian Citrus Farming," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    9. Bakucs, Lajos Zoltan & Ferto, Imre & Fogarasi, Jozsef & Latruffe, Laure & Desjeux, Yann & Matveev, Eduard & Marongiu, Sonia & Dolman, Mark & Soboh, Rafat, 2011. "EU farms’ technical efficiency and productivity change in 1990 – 2006," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108773, Agricultural Economics Society.
    10. Lajos Zoltan Bakucs & Laure Latruffe & Imre Ferto & Jozsef Fogarasi, 2006. "Technical efficiency of Hungarian farms before and after accession," Post-Print hal-02285626, HAL.
    11. Sebastian Lakner & Thelma Brenes‐Muñoz & Bernhard Brümmer, 2017. "Technical Efficiency in Chilean Agribusiness Industry: A Metafrontier Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 302-323, June.
    12. Tom Kompas, 2004. "Market reform, productivity and efficiency in Vietnamese rice production," International and Development Economics Working Papers idec04-4, International and Development Economics.
    13. Thi Bich Tran & R. Quentin Grafton & Tom Kompas, 2008. "Firm Efficiency in a Transitional Economy: Evidence from Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 22(1), pages 47-66, March.
    14. Madau, Fabio A., 2005. "Technical Efficiency in Organic Farming: An Application on Italian Cereal Farms Using a Parametric Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24545, European Association of Agricultural Economists.
    15. Gauri Khanna, 2006. "Technical Efficiency in Production and Resource Use in Sugar Cane: A Stochastic Frontier Production Function Analysis," IHEID Working Papers 15-2006, Economics Section, The Graduate Institute of International Studies.
    16. García-Suárez, Federico & Pérez-Quesada, Gabriela & Molina, Carlos, 2022. "Rangeland cattle production in Uruguay: Single-output versus multi-output efficiency measures," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 22(01), June.
    17. Henriques, Pedro Damiao de Sousa & Carvalho, Maria Leonor da Silva, 2008. "Caracterização E Eficiência Técnica De Explorações Vitícolas Da Região Alentejo," 46th Congress, July 20-23, 2008, Rio Branco, Acre, Brazil 108930, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    18. Sensarma, Rudra, 2006. "Are foreign banks always the best? Comparison of state-owned, private and foreign banks in India," Economic Modelling, Elsevier, vol. 23(4), pages 717-735, July.
    19. Bernini, Cristina & Cerqua, Augusto & Pellegrini, Guido, 2017. "Public subsidies, TFP and efficiency: A tale of complex relationships," Research Policy, Elsevier, vol. 46(4), pages 751-767.
    20. Alejandro Esteller-Moré, 2005. "Is There a Connection Between the Tax Administration and the Political Power?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(5), pages 639-663, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:163706. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iiaaktr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.