Economic Analysis of Pig Production
Chapter One
Purpose of the Study
The main purpose of this study was to analyze the production performance and profitability of pig farms in Enugu State with a view to identifying gaps, needs and constraints that should be addressed properly to improve physical productivity and farm profits.
Specifically, this study sought to:
- identify breeds of pigs kept by rural and urban pig
- determine the productive characteristics of pig breeds kept by
- identify the pig production technologies adopted by pig
- determine physical productivity of pig farms in Enugu
- determine the profit margins of pig farms in Enugu
- determine the productivity constraints of pig
- determine strategies for improving physical productivity of pig farms in Enugu
- determine strategies for improving the profitability of pig farms in Enugu
CHAPTER TWO
REVIEW OF RELATED LITERATURE
The literature is organized under the following sub-headings:
Conceptual Framework:
- Farm Physical Productivity and Profitability
- Pig production, Breeds and Selection of Breeding Stock
- Pig Keeping Practices and Management Systems
- Pig Production Technologies
- Marketing of Pigs, Pig Products and Profit Margins
- Prospects of Swine Production
- Constraints in Pig Production
- Schematic Representation of Relationships of Key Variables and Expected Outcome
Theoretical Framework
- Innovation-Decision Process Theory of Adoption
- Context, Input, Process, Product Evaluation Model
- Programme /Project Evaluation Model
Related Empirical Studies Summary of Review of Literature
Conceptual Framework
The conceptual framework focused on the broad concept of productivity of pig farms. The stakeholders in pig industry participate in different activities in the pig production process right from farrowing to finishing stages in addition to processing, marketing and consumption stages. The pig farmers with the help of other stakeholders establish pig farms by selecting 14 appropriate breeds, rearing the piglets with suitable housing, nutrition, good health care services and suitable marketing facilities.
Some economic management limitations and major constraints interact, resulting to reduced output, sales and revenue. Pig production technologies and other management practices adopted by farmers result to improved productivity in terms of output, sales and revenue. Production constraints, inputs and pig management practices affect each other and all are determinants of productivity/output. The cost of input applied in pig farm gives the total cost of production (including fixed costs and variable costs). The output is sold and total revenue obtained. All costs and revenue are identified and compared to get profit margin or loss. It is worthy of mention that if there is profit, then there may be a reinvestment or plough- back into the business to make for sustainability but if there is loss, the business may fold and it liquidates.
Farm Physical Productivity
Production in this study is the process of rearing pigs from farrowing to finishing stages as well as transporting and marketing of live pigs, pork and other pig products and by-products. Farm productivity is expressed in terms of yield per unit of input (factors of production) (Robert and Ben, 2009). Productivity shows the amount of output realized per unit of input achieved by a firm, industry or a country (Arene, 2008). Productivity is the rate of output in relation to the work, time and money needed to produce them. Productivity per worker can be increased by longer hours, more effort, improved technology or better management (John, 2003). Arene (2008) in his own view maintained that productivity in economic term is used to describe how well or how efficient an economy’s resources are used in the process of production.
Physical products in animal production include live animals, meat, milk, wool, hides and skin, eggs, horns, hooves, bristles and manure. In pig production, physical products include live piglets, adult pigs, pork, lard, bristles, pig skin, manure and hooves (Holness, 2007).
Physical products in a pig farm are measured in terms of the number of piglets produced by a sow per litter per year, number of piglets born alive, weight gain per month, number of piglets weaned and average adult body weight (Michael, 2003). The quantity of live pigs, pork and pig products and by-products produced in a piggery per year are clear indication of physical productivity of that pig farm. The physical productivity of a pig farm can be affected by stockmanship, capital investment, pig production technologies adopted, feeds and feeding system, housing, diseases and parasites, type of pig breeds used and management practices used in the farm. These factors can affect physical productivity either positively or negatively in the production process. The sale of physical products will lead to the monetary or financial aspect of productivity which will go a long way in measuring the profitability of pig farms.
CHAPTER THREE
METHODOLOGY
This chapter described the procedures used in this study. It focused on research design, area of the study, population for the study, Sample and sampling technique, instrument for data collection, validation of the instrument, reliability of the instrument, method of data collection and method of data analysis.
Research Design
Survey design was used in this study. It is generally done by collecting detailed descriptions of existing phenomena with the intent of using the data to justify current conditions and practices or make better plans for improving phenomena. The use of survey research design in this study is appropriate and justified because the data or information elicited by this study were based on the use of questionnaire, data from farm records and opinion of pig farmers and agricultural extension agents.
Area of the Study
The area of the study was Enugu State of Nigeria. The state is located in the South East geo-political zone of Nigeria. It is bounded in the North by Benue and Kogi states, in the South by Anambra and Abia states, in the East by Ebonyi State and in the West by Anambra and Kogi States (Iwena, 2008).
The climate has two distinct seasons namely wet and dry seasons. The vegetation is Guinea savanna with tall grasses, trees and shrubs. This zone is good for livestock production. The farm animals reared in this area include, pigs, cattle, goats, sheep, poultry, fishes and snails. There is clement weather condition to encourage pig production in Enugu State. In addition, most of the residents of Enugu State are Christians whose religion does not forbid the rearing of pigs and consumption of pork. Enugu State is made up of three senatorial zones with 17 Local Government Areas. The senatorial zones are Enugu North, Enugu East and Enugu 85 West. Enugu North senatorial zone has Nsukka, Igbo-Eze North, Igbo-Eze South, Igbo-Etiti, Udenu and Uzo-Uwani Local Government Areas. Enugu East senatorial zone has Enugu East, Enugu North, Isi-Uzo, Nkanu East, Nkanu West and Enugu South Local Government Areas. Enugu West Senatorial zone comprises of Awgu, Aninri, Ezeagu, Oji-River and Udi Local Government Areas. The study covered all these senatorial zones of the State.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
This chapter deals with the presentation and analysis of data collected for this study. The methods of data analysis described in chapter three were used. The results are presented in accordance with the research questions and hypotheses.
Research Question 1
What breeds of pigs are kept by rural and urban pig farmers?
Data for answering research question 1 are presented in table 1
Table 1
Distribution of Respondents (Pig Farmers) Based on Breeds of Pigs Kept
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Re-statement of the Problem
There is enormous shortage of dietary animal protein in the country. The daily animal protein consumption is declining due to high poverty rate, rapid population growth and the ban on importation of foreign meat since the year 2001. The recommended quantity of protein to be consumed by Nigerians has not been attained. In order to narrow the animal protein deficit gap among Nigerian consumers, there is great need to increase domestic production of animals such as pigs. Despite the fact that pig production in Nigeria is one of the UNDP assisted livestock programmes to beef up animal protein supply, pig production is still lagging behind other classes of livestock such as cattle, goats, sheep and poultry. Thus there was a need to analyse production performance of pig farms, to seek ways of improvement. In order to encourage animal protein production, Enugu State Government in her 2009 centenary celebration articulated policy initiatives on livestock production which provided that farmers should concentrate on pig and poultry husbandry (Enugu State Government, 2009).
In contrary, most livestock farmers, investors and Fadama III beneficiaries in the state prefer poultry production to pig production resulting to low production and supply of pork. Moreover, many livestock farmers and investors are not willing to enter into swine production business and many who entered into the business easily close down. The reasons for the failure of the business have not been ascertained. There was therefore the need to examine the existing pig farms in terms of physical productivity, costs and returns so as to determine their current status.
Summary of the Procedures Used
Eight research questions were developed and answered in accordance with the specific objectives of the study. Five null hypotheses were formulated and tested at 0.05 level of 139 significance. Survey research design was used for this study. A structured questionnaire was developed for both pig farmers and agricultural extension agents. The questionnaire for pig farmers was accompanied with pig performance recording sheets.
The population for the study was 519, comprising of 162 registered rural pig farmers, 135 registered urban pig farmers and 222 agricultural extension agents. The questionnaire for pig farmers was administered on 297 respondents out of which 265 copies were returned. The part of the questionnaire for agricultural extension agents was administered on 222 respondents out of which 200 copies were returned. There was no sample and sampling for this study as the entire population for the study was used. The questionnaire was face validated by three experts and the internal consistency of the instrument determined by Cronbach Alpha Reliability Method and Pearson’s product moment correlation coefficient.
The pig performance record sheets were sent to pig farmers in advance for eliciting information on productivity and profitability of pig farms. The researcher and the assistants visited the pig farms every six months for data collection, on physical productivity of pig farms, production costs (inputs), output, and revenue for a period of two years starting from 1st January 2011 to 31st December, 2012.
Percentages and frequency counts and mean were used to answer the research questions in this study while ANOVA, Duncan’s test and t-test statistic were used to test hypotheses at 0.05 level of significance.
The real limit of the rating statement was used in taking decision on mean values in this study. The null hypothesis of no significant difference was accepted for any item whose p- value was greater than 0.05 level of significance (P > 0.05) but rejected for any items whose P- value was less than 0.05 level of significance (P < 0.05).
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