Profitability and efficiency of pig production in Tamil Nadu

Abstract

The present study was conducted to explore the cost and returns, profitability in pig (Swine) farming and to analyze the various factors affecting pig production and their level of efficiency in pig production. For the study, a sample of 45 swine farms was purposively selected by a simple random sampling procedure in the North-eastern zone of Tamil Nadu. The data were collected by personal interview method with the help of a pre-tested questionnaire pertaining to the year 2013–2014. The results revealed that minimum cost of production and maximum net return per farm per year from the pig rearing was noticed in large farms. Overall benefit-cost ratio was 1.46, which revealed profitable nature of swine farms in the study area. The results of cobb-douglas production function revealed that the variables, feed, and veterinary care were significant and positively influence the pork production. Allocative efficiency analysis showed that the resource feed was over-utilized and veterinary care was under-utilized. Technical efficiency was calculated using stochastic frontier production function and mean technical efficiency was identified as 76.37% and hence 23.63% of their technical abilities were not realized. Multiple regression was used to identify the factors influencing farm specific technical efficiency and profitability. Thus, the efficiency in pig production in the study area could be achieved through efficient extension programs about advanced scientific management practices for optimum utilization of resources.

Keywords

• Allocative efficiency
• Pig farming
• Profitability
• Stochastic frontier production function
• Technical efficiency