Productivity and value chain analysis in small-scale poultry farming: Stochastic frontier application

U. Luvhengo*, M.P. Senyolo, J.N. Lekunze

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

The purpose of this study was to investigate technical efficiency, determinants of broiler production and chain analysis in Sekhukhune Stochastic frontier production. Value Chain Analysis (VCA) models were used to analyse technical efficiency, productivity and map the small-scale broiler value chain. Cross-sectional data were collected from 61 individual farmers in Sekhukhune District, Limpopo Province. Results showed that the number of day old chicks (1%), feed quantity (1%), miscellaneous production costs (5%) and labor (10%) were significant factors associated with changes in broiler production. Analysis of socioeconomic variables revealed that level of education, extension contact and years of farming experience were the most significant factors, accounting for variation in productivity among broiler farmers in the study area. The estimated variance parameter (σ 2 ) for farmers was 0.5538 (significant at 1% level). The estimated gamma (γ) parameter revealed variations in broiler output among small-scale farmers in the study area. These variations were due to differences in their technical efficiencies. The average technical efficiency of farmers was estimated at 97%, which is an indication of an appreciable use of inputs in productivity. Results of value chain mapping showed a simple chain from input supplies to selling at farm gate prices with little or no degree of processing.

Original languageEnglish
Pages (from-to)329-341
JournalAsia Life Sciences
Volume27
Issue number2
Publication statusPublished - Jul 2018

Keywords

  • Farmers
  • Limpopo province
  • Productivity
  • Sekhukhune district
  • South Africa
  • Stochastic frontier
  • Technical efficiency
  • Value chain analysis

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