Allocative Efficiency of Broiler Farms in District Charsadda, Khyber Pakhtunkhwa: Stochastic Frontier Analysis. | [Sarhad Journal of Agriculture • 2018]

Author(s):

1. Irfan Ullah: Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan

2. Shahid Ali: Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan

3. Muhammad Fayaz: Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan

4. Abbas Ullah Jan: Department of Agricultural & Applied Economics, The University of Agriculture, Peshawar, Pakistan

Abstract:

This study estimated and examined allocative eficiency of broiler farms in district Charsadda, Khyber Pakhtunkhwa, Pakistan. Data from 120 respondents was collected through multistage random sampling technique. Stochastic frontier cost function of Cobb- Douglas type was used for the estimation of allocative eficiency. The function was estimated using Maximum Likelihood estimation technique. Results revealed that the mean allocative eficiency of broiler farms was 0.84; implies that an average farm could have used 16% less inputs for given level of output if inputs were allocated eficiently. The estimated coeficient of output in the stochastic cost frontier was -0.159 and statistically significant at 5% significant level which implies that output level need to be increased which ultimately leads to decrease ineficiency of resources allocation. In allocative ineficiency effect model, estimates of education and experience were negative and statistically significant which implies that educated and experienced broiler farmers eficiently allocated resources on their farms. Therefore, the policy makers needs to provide education and training facilities to the farmers which are appropriate to rearing of broiler in open shed farms for the eficient utilization of resources and enhancing productivity of broilers.

Page(s): 268-275

DOI: DOI not available

Published: Journal: Sarhad Journal of Agriculture, Volume: 34, Issue: 2, Year: 2018

Keywords:

Keywords are not available for this article.

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