Analysis of profit efficiency of smallholder beef cattle farms in South-West Nigeria

Abstract

AbstractThe study was carried out to analyze the profit efficiency in beef production in South West, Nigeria. These were with a view to improving beef cattle production to meet its increasing demand and income generated from it for producers. Multistage sampling techniques were used to select respondents used for the study. Primary data were collected with the aid of a well-structured questionnaire. Budgetary analysis and stochastic production frontier were used to analyze the data collected. The result of the study shows that total revenue generated was ₦1,879,928.11 while the Gross margin and Net return to management were ₦835,443.63 and ₦726,295.65, respectively. In addition, the Profit efficiency average is 62.2% ± 22.52. Beef cattle production on the average was operated at two-thirds of the profit efficiency frontier.

Keywords

• Beef cattle
• Efficiency
• Profitability
• Stochastic frontier
• Nigeria