IDEAS home Printed from https://ideas.repec.org/p/ags/cfcp15/344298.html
   My bibliography  Save this paper

Optimizing Costs: How Biosecurity Measures Transform Smallholder Poultry Economics

Author

Listed:
  • Otieno, Wycliffe A.
  • Nyikal, Rose Adhiambo
  • Mbogoh, Stephen G.
  • Rao, Elizaphan J. O.

Abstract

Attempts to manage poultry diseases through clinical treatment are both costly and increase the risk of antimicrobial resistance (AMR). This study was motivated by the need to tackle the dual challenge of diseases leading to AMR and low poultry productivity in Sub-Saharan Africa. It assesses the cost efficiency of farmers who use varying levels of biosecurity measures. We employ a three-step estimation procedure: first, a latent class analysis (LCA) model to describe adoption patterns. Secondly, a stochastic frontier analysis is used to generate cost efficiency scores and inefficiency effects. Lastly, a one-way ANOVA is used to compare cost efficiency by adoption categories. The LCA model reveals three uptake patterns for biosecurity measures with low, moderate, and high adoption behaviors. The average cost efficiency scores are 49.5%, 61.6%, and 68.6%, respectively, for the low, moderate, and high adoption categories. The overall score of 60.4% indicates that poultry farmers in Nyanza are largely cost-efficient. We demonstrate from the observed pattern that there is room to improve cost performance through increased use of biosecurity measures. Years of experience in poultry farming and larger stock sizes reduce farm cost inefficiency. These findings form the basis for the promotion of biosecurity measures.

Suggested Citation

  • Otieno, Wycliffe A. & Nyikal, Rose Adhiambo & Mbogoh, Stephen G. & Rao, Elizaphan J. O., 2024. "Optimizing Costs: How Biosecurity Measures Transform Smallholder Poultry Economics," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344298, International Association of Agricultural Economists (IAAE).
  • Handle: RePEc:ags:cfcp15:344298
    DOI: 10.22004/ag.econ.344298
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/344298/files/20984.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.344298?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. Muhammad Arif Watto & Amin W. Mugera, 2014. "Measuring Production and Irrigation Efficiencies of Rice Farms: Evidence from the Punjab Province, Pakistan," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 301-322, September.
    2. Amin W. Mugera, 2013. "Measuring technical efficiency of dairy farms with imprecise data: a fuzzy data envelopment analysis approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(4), pages 501-520, October.
    3. Subal C. Kumbhakar & Mike G. Tsionas, 2021. "Estimation of costs of technical and allocative inefficiency," Journal of Productivity Analysis, Springer, vol. 55(1), pages 41-46, February.
    4. Sreejith Aravindakshan & Frederick Rossi & T. S. Amjath-Babu & Prakashan Chellattan Veettil & Timothy J. Krupnik, 2018. "Application of a bias-corrected meta-frontier approach and an endogenous switching regression to analyze the technical efficiency of conservation tillage for wheat in South Asia," Journal of Productivity Analysis, Springer, vol. 49(2), pages 153-171, June.
    5. Marc F. Bellemare & Casey J. Wichman, 2020. "Elasticities and the Inverse Hyperbolic Sine Transformation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(1), pages 50-61, February.
    6. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, June.
    7. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    8. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    9. Theo Stratopoulos & Evangelos Charos & Kelly Chaston, 2000. "A translog estimation of the average cost function of the steel industry with financial accounting data," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(2), pages 271-286, May.
    Full references (including those not matched with items on IDEAS)

    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. Massimiliano Piacenza & Gilberto Turati, 2014. "Does Fiscal Discipline Towards Subnational Governments Affect Citizens' Well‐Being? Evidence On Health," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 199-224, February.
    2. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Department of Economics - Working Papers Series 1092, The University of Melbourne.
    3. Nguyen, Hoa-Thi-Minh & Do, Huong & Kompas, Tom, 2021. "Economic efficiency versus social equity: The productivity challenge for rice production in a ‘greying’ rural Vietnam," World Development, Elsevier, vol. 148(C).
    4. Hanousek, Jan & Kočenda, Evžen & Shamshur, Anastasiya, 2015. "Corporate efficiency in Europe," Journal of Corporate Finance, Elsevier, vol. 32(C), pages 24-40.
    5. Ali M. Oumer & Amin Mugera & Michael Burton & Atakelty Hailu, 2022. "Technical efficiency and firm heterogeneity in stochastic frontier models: application to smallholder maize farms in Ethiopia," Journal of Productivity Analysis, Springer, vol. 57(2), pages 213-241, April.
    6. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2014. "Estimation and efficiency measurement in stochastic production frontiers with ordinal outcomes," Journal of Productivity Analysis, Springer, vol. 42(1), pages 67-84, August.
    7. Salem Gheit, 2022. "A Stochastic Frontier Analysis of the Human Capital Effects on the Manufacturing Industries’ Technical Efficiency in the United States," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 8(3), pages 215-238, July.
    8. Mulwa, Richard & Kabubo-Mariara, Jane, 2017. "Productive Efficiency and Its Determinants in a Changing Climate: A Monotonic Translog Stochastic Frontier Analysis," EfD Discussion Paper 17-6, Environment for Development, University of Gothenburg.
    9. Jiang, Nan & Sharp, Basil, 2014. "Cost Efficiency of Dairy Farming in New Zealand: A Stochastic Frontier Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(3), pages 1-13, December.
    10. Bao Hoang Nguyen & Robin C. Sickles & Valentin Zelenyuk, 2021. "What do we know from the vast literature on efficiency and productivity in healthcare? A Systematic Review and Bibliometric Analysis," CEPA Working Papers Series WP092021, School of Economics, University of Queensland, Australia.
    11. Hongzhou Li & Andrea Appolloni & Yijie Dou & Vincenzo Basile & Maria Kopsakangas-Savolainen, 2024. "A parametric method to estimate environmental energy efficiency with non-radial adjustment: an application to China," Annals of Operations Research, Springer, vol. 342(3), pages 1379-1405, November.
    12. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    13. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    14. Md Abdur Rouf, 2020. "Evaluation of Agricultural Projects by Parametric Cost Efficiency and Productivity-gap Approaches: An Empirical Study of Flood Control and Drainage Systems in the Southwest Coastal Area of Bangladesh," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 22.
    15. Jyotsna Rosario & K.R. Shanmugam, 2024. "Elementary Education Outcome Efficiency of Indian States: A Ray Frontier Approach," Working Papers 2024-264, Madras School of Economics,Chennai,India.
    16. Md. Asif Nawaz, 2021. "Impact of Specialization, Ownership Structure, and Size on Cost and Profit Efficiency of US Commercial and Savings Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 11(3), pages 1-4.
    17. Bao Hoang Nguyen & Robin C. Sickles & Valentin Zelenyuk, 2022. "Efficiency Analysis with Stochastic Frontier Models Using Popular Statistical Softwares," Springer Books, in: Duangkamon Chotikapanich & Alicia N. Rambaldi & Nicholas Rohde (ed.), Advances in Economic Measurement, chapter 0, pages 129-171, Springer.
    18. Lin, Bin & Wang, Xiaoxi & Jin, Songqing & Yang, Wanjiang & Li, Houjian, 2022. "Impacts of cooperative membership on rice productivity: Evidence from China," World Development, Elsevier, vol. 150(C).
    19. Christian Stetter & Johannes Sauer, 2022. "Greenhouse Gas Emissions and Eco-Performance at Farm Level: A Parametric Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 617-647, March.
    20. Ariel Gustavo Letti & Mauricio Vaz Lobo Bittencourt & Luis E. Vila, 2022. "Stochastic vs. deterministic frontier distance output function: Evidence from Brazilian higher education institutions," Journal of Productivity Analysis, Springer, vol. 58(1), pages 55-74, August.

    More about this item

    Keywords

    Farm Management; Food Consumption/Nutrition/Food Safety;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:cfcp15:344298. 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://iaae-agecon.org/ .

    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.