Profit Efficiency and Profit Progress among Small Scale Fish Farmers in Niger State, Nigeria: MLE Econometric Profit Frontier Function Approach
1 Department of Agricultural Economics, SKRAU, Bikaner, India
2 Department of Agricultural Economics and Extension, Bayero University Kano, Nigeria
3 Department of Agricultural Economics, UAS, Dharwad, India
4 Department of Agricultural Economics, PJSTSU, Hyderabad, India
5 Department of Agricultural Economics, Bayero University Kano, Nigeria
6 Department of Agricultural Economics and Extension, Federal University of Technology, Minna, Nigeria
International Journal of Aquaculture, 2015, Vol. 5, No. 45 doi: 10.5376/ija.2015.05.0045
Received: 13 Nov., 2015 Accepted: 25 Dec., 2015 Published: 11 Mar., 2016
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Preferred citation for this article:
Sadiq M.S., Singh I.P., Suleiman A., Isah M.A., Umar M.S., Maude M.A., Lawal A.T., and Sallawu H., 2015, Profit efficiency and Profit Progress among Small Scale Fish Farmers’ in Niger State, Nigeria: MLE Econometric Profit Frontier Function, 5(45): 1-12 (doi: 10.5376/ija.2015.05.0045)
Self-sufficiency in fish production has been an issue in Nigeria given the quantum of high demand and high expenditure incurred in importation of this product which directly contributes to devaluation of the country currency which in extension impaired the economy status (development and growth) in the country. The best option and the most effective way to improve productivity and sustainability is through efficient utilization of the scarce resources keeping in view cost content at the disposal of these producers, most especially the small-scale producers who account for the bulk of total output in the country. In an attempt to map out a sustainable pathway, this paper empirically study the profit efficiency of small-scale fish farmers′ in Niger State, Nigeria using maximum likelihood estimation (MLE) econometric profit frontier function approach keeping in view the pre-requisite components of economic efficiencies-technical, allocative and scale efficiencies. Multi-stage sampling technique was employed to select 109 current and active fish farmers drawn from the total sampling frame of 182 active producers′ obtained from Niger State Ministry of Livestocks and Fisheries Development viz. three LGAs' namely, Bida, Chanchaga and Borgu. Pre-tested questionnaire coupled with interview schedule were the primary instruments used to elicit information from the respondents in the study area during the 2014 production cycle. Descriptive statistics and MLE stochastic profit frontier were used to achieve the objectives of this study. Empirical results reveals a mean profit efficiency score of 0.69; with 0.21 profit efficiency score gap or profit lost which was attributed to combination of technical, allocative and scale inefficiencies. Furthermore, an average profit-loss estimated was N 8500. Factors related to profit-loss and profit inefficiency are illiteracy, inadequate functional infrastructural facilities, zero training, zero extension advisory services and poor market for these products. Therefore the study recommends improvement in those factors that affects profit efficiency so that they can avail themselves the opportunities to optimize profit efficiently, thus, enhancing their livelihood status and sustainability of this sector, which in the long run will impact positively on the economy of the country. Furthermore, the study opined that improvement in efficiency should be an inclusive responsibility, viz. individual farmers, relevant stakeholders, Non-governmental organizations, research institutions and government both at local, state and federal level respectively.
Fish; Profit efficiency; Frontier; Farmers; Small-scale; Niger State; Nigeria