APPLICATION OF THE STOCHASTIC PROFIT FRONTIER MODEL TO ESTIMATE ECONOMIC EFFICIENCY IN SMALL-SCALE BROILER PRODUCTION IN THE GREATER ACCRA REGION OF GHANA

Abstract

This paper applied the stochastic profit frontier model to estimate economic efficiency of 199 small-scale commercial broiler producers in the Greater Accra Region of Ghana. Farm-level data was obtained from the producers through a multi-stage sampling technique. Results indicate that broiler producers are not fully economically efficient. The mean economic efficiency was 69 percent, implying that opportunity exist for broiler producers to increase their economic efficiency level through better use of available resources. Age of producer, extension contact, market age of broiler and credit access were found to significantly influence economic efficiency in broiler production. Policy measures directed at these factors to enhance economic efficiency of broiler producers are recommendable.

Keywords

• economic efficiency
• stochastic profit frontier
• broiler production
• Ghana