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International Journal of Research and Review

Vol.7; Issue: 4; April 2020


Website: www.ijrrjournal.com
Original Research Article E-ISSN: 2349-9788; P-ISSN: 2454-2237

Pig Farmers’ Socioeconomic Characteristics as


Determinant to Pig Production and Profitability in
the Tropics
Ume S I1, Onwujiariri E B2, Nnadozie AKO1
1
Department of Agricultural Extension and Management. Federal College of Agriculture Ishiagu, Ivo Local
Government Area of Ebonyi State, Nigeria.
2
Department of Animal Production Technology. Federal College of Agriculture Ishiagu, Ivo Local Government
Area Ebonyi State, Nigeria,
Corresponding Author: Ume S I

ABSTRACT area were operating in stage 1 (irrational stage),


which is not at optimum scale of their
Socioeconomic characteristics of pig farmers as production, as they had return scale, 3.0141
determinants to their production and which is greater than unitary. Pig production
profitability in Imo State of Nigeria were was profitable in the study area with gross
studied. The specific Objectives will be to; revenue was N740, 000 per sampled farmer and
describe the socioeconomic characteristics of Net farm income of N334, 542. The limiting
pig farmers, identify the pig production systems factors to pig production in the study area were
in the study area; determined the effect of high cost of feed, high cost of housing,
socioeconomic characteristics of pig farmers on problems of marketing of the products, high cost
their profit; estimate the costs and returns in pig of labour and poor access to credit Among the
production; identify and analyze the constraints recommendations proffered were the need to
to pig production in the study area. Multi-stage enhance farmers access to credit through
random sampling technique will be used to commercial banks, motivation of extension
ninety (90) pig farmers for detail study. The agent through paying them their local
information used for this study were derived transportation incurred while discharging their
from structured questionnaire and secondary duties is very import and ensure that farmers
sources from conferences papers, seminar, have access to genuine drugs
journals, published and unpublished thesis and
workshop.. The objectives i, ii and vi were Key word; Socioeconomic Characteristics; Pig
captured using percentage response and Farmers; Determinant; Pig Production;
frequency distribution table. The objective iii Profitability
and iv were addressed using Gross margin
analysis and Cobb Douglas production function INTRODUCTION
respectively. The result of the socioeconomic In many countries in sub-Saharan
characteristics were the sampled farmers were Africa, hunger and malnutrition as result of
males, aged, educated, used more of family deficit in animal protein intake are prevalent
labour, large household size and experienced,
most pig farmers engaged in intensive rearing
by significant proportion of the rural
and the least was use of extensive method and population and this scenario is well
most farmers were into Farrow to finish documented in many literatures (Ajala, et
enterprises, while the least was animal breeding. al;2007; Food Agriculture Organization,
The results of Cobb Douglas production FAO, 2008, Ume, et al; 2019). For instance,
function that had positive relation to pig farming the daily animal protein intake in many rural
profitability were piglet type, rearing area of Nigeria was 38 grams per caput per
experience, membership of organization and day which is below the recommended
cost of medication. The pig farmers in the study minimum level of 65 gm per caput per day

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Vol.7; Issue: 4; April 2020
Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

by Food Agriculture Organization (FAO). illiteracy of the farmers, poor access to


The above scenario has a far-reaching to credit to be used in procuring material
their health status and chiefly often reported inputs, poor housing as result of high cost of
health challenges among literatures are building materials and as result pigs are at
lowly mental capability, labour productivity times housed in an improviser (Pond and
and depressed national economic Manr; 1998; Ume, et al 2018). Furthermore,
growth(FAO, 2008, Ewuziem, et al; 2010) lack of adequate supply of genetically sound
Pig is one of the fastest means of breeders, high cost of feed, poor
increasing animal protein in order to battle infrastructure facilities, the fear of
animal protein dearth in the diet of most inadequate market for piggery products and
people in rural areas of the developing the absent of pig product processing
Countries. This could be because of intrinsic industry in the country (Ewusiem, et al,
features possessed by pig including has 2008, Getara, 2009, Ume, et al; 2017). The
adaptive characteristics to survive in above aforementioned problems have the
situations other animals fail to thrive, good capacity of reducing the pig farmers’
utilizers of household waste and by product production output, leading to reduction in
to fresh meat, high litter size per sow, more profit margins. In effect, successive
efficient carcass yielder than cattle, sheep governments both in the States and Federal
and goat, high dressing percentage of about levels have initiated programmes such as the
70% compared to 52.5% for cattle and about farm settlement scheme, Agricultural
50% for sheep and goat and efficient Development Programme (ADP), better life
conversion of feed energy to body energy program, and microcredit scheme for
(Okolo, 2011, Osondu, et al; 2014). livestock parent/foundation stock and
Furthermore, pig carcass has a smaller among others in order to propel animal
proportion for bones and higher proportion production but these efforts yielded little
of edible meat, has high fecundity, high feed dividends (Ironkwe and Amefule, 2008). In
conversion efficiency, early maturity, short effect, lots of farmers have jettisoned the
generation interval and relatively and small business, thus complicating more the protein
space requirement (Steinbach, 1997, intake deficit among the nation citizenry.
Bamiro, et al; 2008).However, the important However, literatures show that adequate pig
of pig is centrally on its meat (bacon) which growth and profitability could be attained
is a vital animal protein, source of income through adequate disease control method
and foreign exchange earnings, pigskin and through proper medication, sufficient feed
bristle are used in the manufacture of light and feeding (drugs), good breeding selection
leather and brushes (John, 2007), pig and good housing practice (Agada, 1991,
manure is a valuable fertilizer, its manure Ajala, et al; 2007). This paper therefore
can be aerobically digested to produce aims at assessing the socioeconomic
cooking gas, its’ manure could enhance the characteristics of pig farmers as determinant
growth of microorganisms and plants for of pig profitability in the study area. This
consumption by aquatic animals (Osondu, et could be helpful, since with proper
al; 2013) source of employment and labour understanding of the socio- economic
(Umeh, et al, 2015). In livestock sector, characteristics of farmers and attendants
poultry and pig enterprises have the fastest involved in swine production, the
growth, whereas static or decreasing in most management options they adopt or have
of the developing world (FAO, 2008).The access to and the likely effects on
dwindling in pig production which could production, be could transcend to
adversely affect profitability the profitability profitability, may assist stakeholders and
of the enterprise could be a function of poor policy makers in being focus the area that
quality feeds resulting from unbalanced needed prompt intervention to enhance on
rations, poor access to veterinary services, the production and productivity of piggery

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Vol.7; Issue: 4; April 2020
Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

enterprise and bridge the protein intake This brought to a total of nine communities.
deficit in the menu of most Nigerians Third, ten villages were randomly selected
particularly in the rural areas. The specific from each of the nine communities. This
Objectives are to; (i)describe the brought to a total of ninety villages. Finally,
socioeconomic characteristics of pig one farmer each was selected from each of
farmers,(ii)identify the pig production the ninety villages, totaling ninety farmers
systems in the study area; (iii) determined for detailed study.
the effect of socioeconomic characteristics
of pig farmers on their profit;(iv) estimate Method of Data Collection
the costs and returns in pig production; The information used for this study
(v)identify and analyze the constraints to pig was obtained from primary and secondary
production in the study area. sources. The primary data was deduced
using structured questionnaires and informal
MATERIALS AND METHODS or oral interview of respondents. The
The Study Area questionnaire were used to collect
Imo State of Nigeria was studied and information on cost of labour, cost of
the state is located between latitude 7056" medication (Drugs, disinfectants and
and 6064'N of Equator and longitude 6046' vaccines), years of rearing experience of the
and 5049E.of Greenwich Meridian. The farmers, educational level of the farmer,
state is bounded in the north by Anambra quantity of water in pig production and
State, in the East by Abia State and in the household size and flock size of the
south and west by Rivers and Imo State household, access to credit from
respectively. It has rainfall range of 1500- institutional and non institutional.
2800mm, temperature of 26-440C and Method of Data Analysis
moderate relative humidity of 65%. Imo The objectives i, ii and vi were be captured
comprises of twenty seven Loc al using percentage response and frequency
Government Areas (LGAS), many distribution table. The objective iii, iv and v
autonomous communities and many were addressed using Gross margin analysis
villages. It covers an area of 5100 km2 with and Cobb Douglas production function and
population of 3,934 million people (11). The factor analysis respectively.
Imo people are mainly farmers and engage
in cropping of yam, cassava, maize and Model Specification
cocoyam. The farmers were involved in the Cobb Douglas
rearing of animas such as pig, poultry, goat, The Cobb-Douglass theory of
sheep, rabbit and snail production. The other production has provided important
economic activities engaged by the farmers framework for the measurement of
were trading, auto mechanics, saloon, civil productivity and employment of factors of
services and hostelling. production since 1930s. Cobb and Douglas
Sampling Procedure and Sample Size have modelled the growth of output in
Purposive and multi-stage random American manufacturing sector between
sampling techniques were used to select 1899 and 1922 in which output of goods
Local Government Areas (LGA), were determined by combination of two
communities, villages and respondents. factor inputs, namely labour and capital
Firstly, three LGAs noted for pig production under the assumption of constant returns to
because of nearness to three – three(3-3) scale production. Cobb-Douglas production
brewery were purposively selected. The function is popularly used in signifying the
selected LGAs were Okigwe North, Ideato technological relationship between the
North and Ideato South. Second, three quantities of two or more inputs
communities out of five were randomly (particularly physical capital and labor) and
selected from each of the selected LGA. that of output that can be produced in a

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Vol.7; Issue: 4; April 2020
Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

production process. The preference of = Household Size (No), X8 = Flock


Cobb-Douglas in both developed and Size(No), X9 = Credit (N)
developing countries lie on its use in
analyzing various policies in the economic Benefit cost Ratio:
field and for function in different sectors of This was used to estimate farm net revenue
economy of a country. For instance, it is for pig production. Theoretically, net
used in making rational decision on the revenue (NR) is the total revenue (TR) less
quantity of each factor inputs to employ so the total cost(TC);
as to minimize the production cost. It’s NR = TR – TC …………………………(3)
mathematically expressed as: Total cost is the addition of the entire
Y = ALαKβ (1) variable cost(VC) and fixed cost (FC) items;
Where Y = total output, L = units of TC = TVC + TFC……………………… (4)
labour, K = units of capital, and α and β are Total revenue is the total amount of money
elasticity of labour and capital, and A is an that a farmer received from the sale of
efficiency parameter. The parameter A is stock;
the efficiency parameter. It serves as an TR = ΣPxQx ………………………… (5)
indicator of the state of technology. The Gross margin (GM) = TR – TVC…….....(6)
higher the value of A, the higher would be Net farm income (NFI) = GM − TFC …..(7)
the level of output that can be produced by The rate of return is a performance measure
any particular combination of the inputs. used to measure the amount of return on an
The Cobb Douglas production function A, a investment relative to the investment cost. It
and b are positive parameters where = a > is given by:
O, b > O. The equation describes that Rate of Returns (ROR) = NR/TC ……... (8)
productivity depends directly on L and C Gross Ratio (GR) = TC/TR ……............ (9)
and that part of output which cannot be Benefit Cost Ratio (BCR) = TR/TC …..(10)
explained by L and C are explained by A P = price per pig
which is the residual, often called technical Q = quantity of pig sold
change (Hajkova andHurnik, 2007). Pig production is profitable if its BCR ≥ 1.
The function was criticized from The higher the BCR, the more profitable the
three fronts by economics scholars, namely pig production business is. Depreciation was
on assumption of constant returns to scale calculated using the straight line method
which the model built its analysis, on the Factor analysis
omission of technical change, thereby Factor analysis was used to analysis
having the notion that technology I static the constraints to pig production in the study
within the duration of the study which is not area using principal component factor
possible in realities (Fraser, 2002). analysis with varimax -rotation with factor
Furthermore, the neoclassical economists loading of 0.3 was used. The constraints to
criticized the model on the basis that the pig production in the study area were
productivity theory centered more of an categorized into three factors using varimax
pensiveness than a proven. rotation and factor loading of 0.30. The
In Logarithms, the equation is: principal component factor analysis model
Log Y = log Xo + log X1 + log X2……… + log is stated thus
Xn………………………………………………..(2) R1 = Y11 M1 + B12 M2 +----------Yn1 Mn
Where; ……………….. (11)
X1 = Quantity of feed consumed in R2 = Y21 M2 + B22 M2 + -----------------------Y2nMn
kilogram, X2 = Labour ( Mandays), X3 = ………………..(12)
Cost of Medication (Drugs, disinfectants R3 = Y31 M3 + B32M2+------------Y3nMn
and vaccines) (N), X4 = Years of rearing ,………………(13)
experience (Years), . X5 = Educational level Rn = Yn1M1 +Bn2M2 + -------------------YnnMn
(Years), X6 = Quantity of water(Litres), X 7 …………………….(14)

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Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

Where; of knowledge and good manager to handle


R 1 = cn= observed variable /constraints in the business for high profit to accrue
pig production pdts (Duniya et al; 2013). This finding did not
Y1= Yn = Factor loading or correlating concur with the Rahman, et al; (2008), who
coefficients reported youth domination in their study
M1 = Mn =unobserved underlying area. This farming group is usually
challenging factors facing pig production innovative and motivational to enhance pig
production frontier and high profitability,
RESULTS AND DISCUSSION they observed.
Socioeconomic Characteristics of the Also, majority of the pig farmers had
Farmers primary education (27.8%), followed by
Table 1 shows that 58.9 % of the those that had secondary education (18.7%),
respondents were more than 41 years and while the least, 6.7% had tertiary education .
above, whilst 42.1% of them were within The educational status of the farmers
the age range of less than 41 years. enhances his/her receptivity to innovation,
Table 1: Distribution of Respondents According to
managerial ability and ability to
Socioeconomic Characteristics comprehend and assess new production
Variable Frequency Percentage Mean technologies in order to enhance the
Age
21- 30 15 27.5 profitability of the business through
31 – 40 22 24.4 42 improved farm productivity (Ironkwe and
41 – 50 20 22.2
51 and above 33 36.7 Amaefule, 2008).Table 1 shows that 22.2%
Educational Level of the sampled farmers had farming
Non formal education 15 16.7
Primary education 25 27.8
experience of below 11 years, whilst 77.8%
Secondary education 17 18.9 had above 11 years. This implied that the
Tertiary education 8 6.7 farmers in the study area were well
Household size
1–5 18 20 experienced in pig production. Ume, et al;
6 – 10 35 39.9 7.2 2018) remarked that years of rearing
11 -16 30 33.4
17 – 21 7 7.8
experience enables farmers to set a realistic
Farming Experience goal and manage their resource prudently to
1 – 10 20 22.2 enhance their output, which may possible
11- 20 56 66.2
21 and above 14 15.6 11.4 translate to high profit. Furthermore, all the
Drug/Vaccine Usage sampled pig farmers in the study area used
Yes 90 100
No - - drug and vaccine in treatment and
Labour Source prevention of pig production ailment
Family 41 45.6
Hired 17 18.9
respectively. The major problem in the use
Communal 6 6.7 of these drugs and vaccines are its scarcity
Hired & Family 26 28.9 at farm level, substandard drugs and most of
Water Usage
Yes 90 100 the vaccines are not kept in cold chain, thus
No - - loosing viability. The consequences are high
Rearing Method
Intensive System 59 65.6 mortality, low productivity and low
Semi Intensive 21 23.3 profitability (Ewuziem, et al; 2009)
Extensive 10 11.1
Enterprises
Table 1 above shows that majority
Farrow 23 25.6 (38.9%) of the respondents had household
Farrow - Finish 40 44.4 size of 6-10 persons, while the least (7.8%);
Finishing operation 20 22.2
Breeding 7 7.8 16-20 persons. Larger Farming households
Source; Field Survey; 2018 with large members of labour age are
usually employed in pig production to
This implied that aged farmers reduce cost of production emanating from
dominated pig production in the study area high labour cost with resultant high profit
and this age class is always an embodiment accruing (Ezeibe, 2010). Besides, the table

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Vol.7; Issue: 4; April 2020
Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

reveals that 45.6% of the sampled farmers method plays a significant role in swine
used family labour in pig production, production as good and efficient housing
28.9%; used family and hired labour, while makes management easier and helped the
the least, communal labour(6.7%). The use farmer to successfully rear 85% or more of
of family labour is peculiar to small scale all the shortest possible time (Pathraja and
farmers in sub-Saharan Africa in curtailing Oyedipe, 1990).However, pigs reared under
high cost of production, which may possibly extensive management has the following
correlate to high profitability. characteristics irregular breed of sow, slow
Also, all the sampled pig farmers in growth, pests and disease infestation, high
the study area used water in pig production. mortality of piglets, low productivity as
Studies revealed that water is the single result of erratic of seasonal feeding (Getara,
largest constituent of the body making up of et al; 2009). Table 11 shows that most
about 82 percent of young pigs and 55% of (52.2%) of the respondents engaged in
market hog body weight (Ewuziem, et al, farrow and finish enterprise operation,
2010). Nevertheless, Holness, (1999) whilst the least, 22.2% was into finishing
reported that high concentration of water in operation. The farrow and finish operation
the pig manure (86-98%) increases the cost needed more facilities than other enterprises
of storage and disposal. In addition, and as well more profitable (Pond and
majority (65.6%) of the respondents reared Manar, 1998)
their pigs under intensive system, followed Results of Cobb Douglas Production
by those that raised their pigs under semi Function
intensive system (23.3%) while the least The Results of Cobb Douglas production
(11.1%) reared under extensive system of function is presented in Table 2
management. Studies showed that rearing

Table 2.Results of Cobb Douglas Production Function


Variable Coefficient Standard Error t- value
Age -0.8924 0.4302 -2.0743**
Piglet Type 0.6591 0.2094 3.1475***
Cost of feed -0.48632 0.3901 -1.2466*
Rearing Experience 0.6984 0.23345 2.9916**
Cost of Capital 0.5430 0.6590 0.8224
Membership of Organization 0.7998 0.2643 3.0261***
Cost of Medication 1.4390 0.5219 2.7572**
Cost of Water 0.5741 0.6354 0.9035
Flock Size 0.8444 0.4990 1.6921*
Education 0.6691 0.2665 2.5106**
Household Size 0.236 0.0091 25.9340***
Cost of Labour -0.5591 0.4094 -1.3656*
Constant 0.9032 0.1189 7.5962
Source; Field Survey, 2018

As usual, the coefficient of age of profitability of pig farm at 1% significance


household head was negative to the level, connoting that piglets with
profitability of pig enterprise and in accord characteristics of having good litter sizes,
with the finding of Ume, et al.( 2018). The leanness, muscle, current growth rates, and
sign identity of the variable could be high feed conversion to pork efficiency has
correlated to diminishing in strength high propensity of giving high profit to
associated with old age in contrary to the piglet that has nature in contrast to the
strength required in pig production. The earlier mentioned features (Bamiro, et al;
effect is that such household head hire 2008).Also, the coefficient of cost of labour
labour in accomplishing the pig production had a negative sign to pig farmers’ profit
activities to the detriment of the farm profit. and statistically significant at 5 %
Additionally, the coefficient of the piglets significance level. Pig production is labour
breed type correlates positive with the intensive and only fewer labourers could

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Vol.7; Issue: 4; April 2020
Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

offer themselves to work there but at of the resource (concentrates). This finding
exorbitant prices. The low labourers is in agreement with several studies ( Bama,
acceptability could be owning to phobia that et al; 2004, Rahman, et al; 2008, Okolo,
pig will bite them and problem of being 2011) on negative effect of feeding pigs on
allergic to odour associated with its grains especially in most countries in sub
production This result concurred with the Saharan Africa where grains are scarce in
finding of Ogunfowona, et al; 1990) who supply and is in serious competition with
reported that pig rearing is strenuous and man, leading to low farm production and
needed good management to reduce odour meager profit. Additionally, as expected, the
associated with its production. Furthermore, coefficient of educational status of the pig
the coefficients of rearing experience had a farmer was positive, implying that a unit
positive association with the farmers’ level increase in the number of years of schooling
of profit, signifying that a unit increase in by the household head will lead to increase
the years of farming household farming in the profit by a magnitude of the
experience by one year could result to an coefficient. The positive sign of the variable
increase in the profit by the magnitude of could be related to the fact that education
the coefficient. This finding of Mpofu and impacts into the farmers the aptitude to
Makuza, (2003) corresponded to the above comprehend and react positively to new and
assertion. They opined that farmers with improved innovation in order to boost their
many years of experience have more odds production and profit in their farms than
of making optimal combination of resources their counterpart with lesser educational
for higher productivity, which may possible attainment. Nevertheless, literatures show
translate to high profit. Still, the coefficient that educational deficit by the farmers could
of household size was positive in agreement be counteract with adequate extension
with a priori expectation and statistically delivery system, especially as regards
significant at 5% alpha level. The technologies adoption (Rahman, et al;
implication is that the more the household 2008). Also, the coefficient of flock size
head has more household members of was positive and statistically significant at
labour age and available, the more the 10 % alpha level. The sign of the coefficient
likelihood of using them to implement pig corresponded with a priori expectation,
husbandry management technologies and signifying that the larger the farmers’ flock
save the money that could have paid to hired size the higher the propensity of generating
labourers as part of the business profit higher profit from the sales of the pig. This
(Ume, et al; 2017). They posited that finding is in agreement with Ume, et al
families with large and mature household (2018) on the study of economics of pig
members have more odds in carrying out production in Ezza North Local
labor intensive technologies associated with Government Area of Ebonyi State, Nigeria.
pig production, thus relaxing the labor As well, the coefficient of cost of
constraints common in agricultural medication was positive and significant at 5
production especially during peak season of % alpha level. The result could necessitate
the farming season when labour is scarce that the more pig farmers have access
and expensive medications such as drugs, disinfectants and
Moreso, the coefficient of cost of vaccines the higher the likelihood of
feed had indirect relationship with farm increasing their level of their output and
profit in pig production at 95% confidence profit generated. In contrary, the finding of
interval. This could connote that the more FAO, (2008) reported that adulteration and
pig feeds constitute of more of concentrates substandard of drugs and vaccines flooding
in contrast to domestic and crop residues, many markets in most developing countries
the more outputs but the lesser the likely of Africa and as well, high cost of these
profit that may accrue as result of high cost medications to the reach of farmers could

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Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

lead to high mortality of the animal and low The value of the return to scale of pig
profit accruing. Besides, the coefficient of production in the study area was 3.0141.
membership of organization was positive to This figure is greater than unity, indicating
pig profitability in the study area and increasing return to scale. This implies that
significant at 1.0 % risk level. This implies the farmers were operating in stage 1
that farmers that are members of (irrational stage), which is not at optimum
organizations such as cooperative have scale of their production. Therefore, the
higher probability of making more profit farmers need to inject more inputs or
than non members. This may possible be resources into their production in order to
explained by the fact that cooperative have propel their outputs.
ability of inculcating into her members Table 2: Production Elasticity and Return to Scale
better attitude to innovation adoptions Variable Elasticity
through training and interactions among Piglet Type 0.6591
Cost of feed -0.48632
members and through access to information Cost of Capital 0.5430
(Osundu, et al; 2014) Cost of Medication 1.4390
Cost of Water 0.5741
Production Elasticity and Return to Scale Flock Size 0.8444
The return to scale of the production Cost of Labour -0.5591
function is shown in Table 2 Return to Scale 3.0141
Source; Field Survey; 2018
The elasticity of production
measures the degree of responsiveness of Costs and Returns in Pig Production
output to changes in inputs. The estimates Table 3 showed that the average total cost of
for the parameters of stochastic frontier production incurred by the respondents was
production are the direct elasticity of N101,810.
production for the various inputs given the
Cobb Douglas specification of the model.
Table3. Costs and Returns for 10 Pigs for 8 Months
. Item Unit Quantity Unit price Cost/ value Percentage
Returns
Sales of manure bag 120 350 42,000
Sales of live pigs No 10 70,000 700,0000
Total 12350 742,000
Variable
Cost of apiglet No 10 7,000 70,000 17.2
Cost of labour Manday 1 5000 40,000 9.8
Cost of Medication 6,000 1.5
Cost of Feed Kg 230,458 56.6
Cost of Water Tanker load 4 6,000 24,000 5.9
Miscellaneous 13000 3.2
Total Variable Cost (TVC) 383,458 94.1
Total Fixed Cost 24,000 5.9
Grand Total 407,458
Net Farm Income (TR – TR) 334, 542
Rate of Return of Investment (TC/TR) 55%
Benefit – Cost Ratio (TR/TC) 1:1.8
Gross Margin (TR –TVC) 356542
Gross Margin Ratio ; 0.40
Source; Field Survey; 2018

The total cost comprises of the gross revenue was N444, 000 per
variable and fixed costs and from the table, respondent. The average gross margin per
the variable cost represents 86% of the total respondent was N350, 330. The average Net
costs of production, while fixed costs farm income per respondent was N342, 190.
accounted for 5.29%. Additionally, feed Therefore, the average Net farm income per
cost represents 50.5%, labour cost; 28.97%, pig was N19, 010. 6. This indicated that pig
while the cost of drugs, disinfectants and production is a profitable venture. Table
vaccines represent; 6.83%. The average shows that the total cost of production,

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Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

which comprise of total variable cost and


total fixes cost for ten (10) pigs in the study Factor 1= economic/institutional
area was N 383,458 factor, Factor 2 = infrastructural factor and
The total variable costs signify 86% Factor 3 = socio-financial factor (Ikani and
of the total costs of production, while fixed Dafwang, 1995). Only variable with factor
costs accounted for 94.1%. In addition, feed loading of 0.30 and above at 10%
cost represented 56.6% of total cost of overlapping variance were used in naming
production, followed by cost of piglets; the factors.The factor loading of less than
17.2%, while the least was cost of 0.30 and variables that loaded more than
medication, 1.5%. The high cost of pig one factor were discarded. The variables
feeds could be related to competition of the that loaded more than one factor like
same ingredients with humans for inadequate equipment and marketing of
consumption. The low cost of medication product were revealed. In identification of
may perhaps be ascribed to most of the poor the factors, Ume, et al; (2018) opined that
resource farmers’ use of Indigenous Known each factor is assigned a value considering
Technologies (IKT) owning to high costs their disposition. The limitations underneath
and their substandard as commonly seen in the economic /institutional factor include
African Markets (Okolo, 2011). The Capital problem (0.346) and poor access to
average gross revenue was N740, 000 per extension services (0.318). The problem of
sampled farmer with Net farm income of poor access to credit has been a bane to
N334, 542. agricultural development in Nigeria and this
The rate of return on investment in could be correlated to lack of collaterals,
pig production was 55%, implying that for high interest rates, short-term repayment
every N1.00 invested, 54K is gained. The and ignorance of loan source by the farming
result of the Benefit-Cost Ratio (B C R) population (Ume, et al; 2018). In addition
shows that pig production is a profitable the problem of poor extension services to
business, as it is greater than 1. The same most pig farmers could be associated to high
thing applied to gross margin ratio (G M R). extension – farmers ratio, lack of
The expense structure ratio (E S R) results technological information in pig farming
also indicated that pig production has good and inadequate incentives to the change
financial strength. Conclusively, the various agents (Ezeibe, 2010)
profitability ratio techniques used to Variables that loaded under factor 2
analysis, revealed that the business is (infrastructural factor) include; high cost of
profitable. . labour(0.329), feed (0.312), disease (0.304),
Varimax-Rotated Factors Against pig and drug (0.439). The high cost of labour
production has resulted in as asserted by Okolo, ( 2011)
Table 4, three factors were take out based high cost of production and as well
on the reaction of the respondents to the reduction in their flock size as most poor
questionnaire issued to them, resource farmers resort to use of family
labour in their pig business.
Table 4 Varimax-Rotated Factors Against pig production in Additionally, high cost of feed especially
the Study Area.
Variable Factor 1 Factor 2 Factor 3 those of commercial ingredients and in this
Feed -0.115 0.312 0.171 situation, farmers particularly poor resource
Poor breed 0.216 0.320* 0.003
Housing 0.236 0.093 0.339 ones are forced to use domestic or local
Marketing of products -0.308 0.414 -0.367 food ingredients available to them to feed
Lack of capital 0.346* -0.137 0.212
High labour cost 0232 0.329* -0.119
their pigs with resultants of stunted growth
Poor extension contact 0.318* -0.028 0.140 (Duniya, et al; 2013). Besides, high cost of
Disease 0.122 -0.304 0.322* medicines (drug) and vaccines, poor
Veterinary posts 0.007 0.128 0.349*
Inadequate equipment 0.307 0.190 0.326* knowledge of the use of these medications
Lack of drugs 0.118 0.439* 0.127 and inaccessibility of these medicals at the
Source: computed from SAS 2018.

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Vol.7; Issue: 4; April 2020
Ume S I et.al. Pig farmers’ socioeconomic characteristics as determinant to pig production and profitability in
the tropics

farm level by the farmers have resulted most engaged in intensive rearing and in farrow
farmers jettison their farms because of low to finish enterprises. In addition, the
productivity to other economic activities as following factor affected pig farming
farm proceeds cannot longer sustain them profitability in the study area were piglet
(Ume, et al; 2019). As well, use of poor type, rearing experience, membership of
breeds of pigs in most pig producing organization, cost of medication, flock size,
societies in developing countries still use household size and educational level. As
local breeds of pigs, with the reasons of well, the limiting factors to pig production
their being tolerant to adverse weather in the study area were high cost of feed,
condition, low cost of piglets, tolerant to high cost of housing, problems of marketing
pest and diseases, hardy in nature and could of the products, high cost of labour, poor
be reared with low inputs through extensive access to credit and poor extension contact.
rearing (Bama, et al; 2008). Recommendation
The variables under socio-financial The following recommendations were
factors were housing (0.339), disease construed;
(0.322) and veterinary post (0.349). Problem Farmers’ level of education should be
of poor housing has resulted in enhanced through adult education,
environmental pollution to both immediate workshops and seminars. Also, new and old
and surrounding environment with farmers could be encouraged to stay in pig
proliferation of odour, flies and rodents. For business through provision of improved
instance in most rural areas,, pigs are breeds to boost their productivity, In
housed in incomplete residence, near to addition, pig farmers should be encouraged
living houses and local materials such as to form or join cooperatives for ease of
bamboos to that effect that most a times pigs access pig material inputs such as feed,
are unrestrained and cause damages to veterinary drug and vaccines. As well,
households’ economic things and his households with large family size are
environment ( Ajala, et al; 2007). The poor encouraged to use them as source of labour
access to veterinary posts in most rural in order to curtail cost of production.
areas, has compelled most farmers to
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International Journal of Environmental & socioeconomic characteristics as determinant to
Agriculture Research (IJOEAR) pig production and profitability in the tropics.
ISSN:[2454-1850] [Vol-4, Issue-6, June- International Journal of Research and Review.
2018] 2020; 7(4): 394-405.
31. Ume SI, Ezeano CI, Onunka BN, (2018).
Technical efficiency of pig production in

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