Research Paper
Year: 2021 | Month: February | Volume: 8 | Issue: 2 | Pages: 464-481
DOI: https://doi.org/10.52403/ijrr.20210260
Profit Function Analysis of Aquaculture Farmers from Selected States in South East, Nigeria using Cobb –Douglas Stochastic Production Frontier Function
Ume, S I1, Ebeniro, L A2, Azuine, U A2, Uche, F O2
1Department of Agricultural Extension and Management, Federal College of Agriculture Ishiagu, Ivo Local Government Area (LGA) Ebonyi State, Nigeria
2Department of Fisheries Technology, Federal College of Agriculture Ishiagu, Ivo Local Government Area (LGA) Ebonyi State, Nigeria
Corresponding Author: Ume, S I
ABSTRACT
Profit function of aquaculture farmers from selected states in South East, Nigeria using Cobb –Douglas stochastic production frontier function was studied. One hundred and twenty farmers were selected using purposive and multi stage random sampling techniques. A structured questionnaire and oral interview were used to elicit information on primary data. The secondary data were collected using textbook, journals, seminars, workshops and other periodicals. Percentages responses, multiple regression model based on Stochastic Frontier Profit Function which assumed Cobb-Douglass specification form and Inefficiency function model, while Gross margin analysis multiple regression model based on Stochastic frontier profit function which assumed Cobb-Douglass specification form and Inefficiency function model and gross margin analysis were used to address the objectives of the study. The major results of the study showed that the coefficients of prices of feeds, fingerlings, drugs, fertilizer and pond size were positive. whereas, the coefficient of labour was negative and cut across all States, the coefficient of water was negative among Abia State farmers. Furthermore, the coefficients of age, educational levels, cooperatives and extension services were positive and cut across all States. Also, the coefficient of credit was negative and significance only in Anambra and Ebonyi States. The production of catfish and tilapia was profitable in the study area with high gross margin and Net farm income. The limitations to aquaculture production as well in the study areas were poor access to credit, water problem, poor fish breeds, poor access to extension services, high costs of building materials, feed and labour, and cannibalism. The need to improve farmers’ access to credit, extension services, good fish breeds among others were proffered.
Keywords: Profit Function; Aquaculture Farmers; Selected States; South East; Nigeria; Cobb –Douglas; Stochastic Production; Frontier Function.
[PDF Full Text]