PROFIT EFFICIENCY OF FISH FARMERS IN KWARA STATE NIGERIA

Abstract

The study examined profit efficiency among fish farmers in Kwara state, Nigeria. The specific objectives of the research were to examine the socio-economic characteristics of the fish farmers in the study area, estimate the cost and returns associated with fish farming, determine the profit efficiency of fish production in the study area, analyze the determinants of profit efficiency in fish production and to examine the constraints associated with fish production. Data were collected from randomly selected 60 farmers using questionnaire. Data were analyzed using descriptive statistics, farm budgeting technique and stochastic profit function. The results showed that the mean age, farming experience and household size of the fish farmers were 45 years, 18 years and 8 respectively. The gross margin and net farm income were ₦838,778.34 and ₦769,945.32 respectively. Stochastic profit frontier analysis revealed foundation stock cost, pond size and capital input had a significant and positive influence on fish output. Age and membership of cooperative had positive effect on the profit inefficiency Constraints faced by the farmers in the study area included lack of electricity, polluted water and lack of government support. It was concluded that fish production was a profitable venture in the study area. The study therefore recommended that farmers should form cooperative societies so as to pull their resources together and improve their finances to enhance their production. Also, policies made by the government to encourage local production of poultry and fish should be implemented by all the agencies concerned.