Economic efficiency of fish farming in ondo state, nigeria

Abstract

This study assessed economic efficiency of fish farming in Ondo State, Nigeria. The study used primary and secondary data to achieve the objective of the study. Primary data were collected with the aid of structured questionnaire from 72 Fish farmers selected using the multistage sampling technique. The analytical technique involved budgeting technique, stochastic frontier production and cost function analysis. The study discovered from the gross margin and net-revenue analysis that fish production was profitable judging by the positive value and size of the gross margin (₦175.55 per kg) and net revenue (₦170.96 per kg). The result of the stochastic frontier production function analysis showed that all the regressors used in the analysis had positive coefficient, indicating that allthe inputs considered had direct relationship with farmers output. The result of the stochastic cost frontier function analysis showed that unit cost of labour, fingerlings, fertilizer and lime had positive regression coefficients, indicating that as these variables increase,the overall production cost of fish increases. The result also indicated that the presence of technical inefficiency had effects on fish production as depicted by the significant estimated gamma coefficient. The study recommends improvement in human capital development through education policy and training programme by extension education, opening of more market opportunities should be pursued and government should provide support to fish farmer’s cooperative society by increasing their capital base.