TECHNICAL EFFICIENCY AND PROFITABILITY ANALYSIS OF CATFISH FARMING IN ONDO STATE, NIGERIA
Keywords:
Catfish, inputs, costs, culture, profit, efficiencyAbstract
Catfish farming is a popular agricultural business in Nigeria because of its short production cycle and a quick return on investment. The objectives of the study were to determine the economics and technical viability of catfish farming in Ondo State, Nigeria. Purposive and simple random sampling methods were used to select 171 catfish farmers from five local government areas of the state, using structured questionnaires. Analytical techniques used were stochastic frontier production model, the net farm income analysis, and descriptive statistics. Nearly 70% of the catfish farmers were in the productive and active range of 20 – 49 years and roughly 67.25% of them had post-secondary education. The profitability analysis indicated that a kilogramme of food-size catfish was sold for ₦938.96, while the total production cost was ₦952.30, leading to a loss of ₦13.34 per kg of food-size catfish. Estimates of the maximum likelihood of the stochastic frontier production model showed that variables such as pond size (t = 2.809), fish seeds (t = 14.065), feed (t = 9.548), and labour (t = 8.915) were significant and had a direct relationship with the amount of catfish output. Mean technical efficiency level was 0.88, while the value of returns to scale was 1.65, indicating increasing returns to scale. The study concluded that the efficiency level among catfish farmers was high and that catfish farming or production in the study area was not profitable due to the high cost of catfish feed. It is recommended to use supplementary feed, such as maggots, to reduce the astronomical cost of feeding catfish.
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