Economic Efficiency and Return to Scale for Small Broiler Farms in Khartoum State, Sudan

Abstract

This study aimed at targeting the analysis of the current situation of broiler small scale farm producers’ in Khartoum State, and measuring the economic efficiency and return to scale. Data obtain were analyzed using both descriptive and inferential statistics. The estimation of broiler farm efficiency was based on using Date Envelopment Analysis (DEA) and Stochastic Frontier Production function. The data for this study were collected using structured questionnaire administered on purposive sampling technique of 40 farms. The study depicted several results such as high Feed cost and day – old chicks cost were the main challenges for broiler small scale farm producers’ since they represented 78%,55% respectively of the total challenges. On economic efficiency the result showed that the average of technical efficiency for these farms reached 83% that means these producing farms can increase their output by17%given the present state of technology and inputs levels. On average the allocative efficiency was 74%, that means producers’ can reduce input price by 26% to obtain the full allocative efficiency. The level of economic efficiency range between high level 20% and low level 80% represented the total sample size. With average of %45 which means the producers’ in research sample can reached the same level of production according to decreasing production cost or decrease the quantity of resources used at 55%. The study found some of the conclusion and recommendation, the most important of it obliges: the producer’s level of education can be manipulated within the framework of an agricultural policy in order to improve the technical efficiency of broiler small scale producer. Actually, all policy measures that build the capacities of farmers will lead to a substantial reduction of technical inefficiency.