Technical Efficiency Analysis of Layer and Broiler Poultry Farmers in Pakistan

Nisar Ahmed Khan (), Majid Ali, Nihal Ahmad, Muhammad Ali Abid and Sigrid Kusch-Brandt ()
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Nisar Ahmed Khan: School of Economics and Management, Beijing University of Technology, Beijing 100081, China
Majid Ali: Department of Economics and Agi-Economics, PMAS-Arid Agriculture University, Rawalpindi 46000, Pakistan
Nihal Ahmad: School of Economics and Management, Northwest Agricultural & Forestry University, Xi’an 712100, China
Muhammad Ali Abid: Department of Artificial Intelligence, University of Agriculture Dera Ismail Khan, Dera Ismail Khan 29120, Pakistan
Sigrid Kusch-Brandt: Faculty of Mathematics, Natural Sciences and Management, University of Applied Sciences Ulm, 89075 Ulm, Germany

Agriculture, 2022, vol. 12, issue 10, 1-21

Abstract: Achieving high production with limited resources is a major challenge faced by poultry farmers in countries with developing economies, such as Pakistan. Optimization of the technical efficiency (TE) of poultry business operations is a promising strategy. A representative sample of 210 poultry farms in the province of Punjab in Pakistan was analyzed for TE. The studied sample comprised 105 layer chicken farms (battery cage system, egg production) and 105 broiler chicken farms (environmental control shed system, meat production). A Cobb–Douglas stochastic frontier production analysis approach with the inefficiency effect model was used to simultaneously estimate TE levels and identify factors that influence efficiency. The results indicated that flock size, labor, feed, and water consumption are positively related to egg production, whereas vaccination was found to be insignificant. For broiler businesses, flock size, feed, and water consumption were positively related to the output, whereas labor and vaccination were found to be insignificant. The results of the TE inefficiency effect model revealed that farmer age, education, experience, access to credit, and access to extension services all had a significant and positive influence on the technical efficiency of both layer and broiler farmers. The estimated mean TE level of layer and broiler poultry farmers was 89% and 92%, respectively, evaluated against the benchmark of the identified frontier of efficient production with prevailing systems. The study concludes that it is possible to increase egg production by 11% and meat production by 8% by making more efficient use of the available resources and technology. To improve poultry farmers’ efficiency, policy interventions should focus more on the pronounced effects of variables such as education, farmer experience, credit access, and extension services.

Keywords: technical efficiency; layer and broiler farmers; layer chicken; broiler chicken; battery cage system; environmental control shed system; stochastic frontier analysis; Punjab (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2022
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