Vertical integration and cost behavior in poultry industry in Ogun and Oyo States of Nigeria
In this article, the influence of vertical integration on cost behavior in poultry farming in southwestern Nigeria is examined. The study was based on primary data obtained in cross-section survey of 211 randomly selected poultry farms in the study area. An average farmer in the sample was 44 years old; 85% were males and 72% had tertiary education. An average poultry farm in the sample had 4,342 birds, about half of which were laying birds. A set of cost and revenue share equations estimated by Zellner's seemingly unrelated regression (SUR) method revealed that vertical integration (measured in proxy by value-added sales ratio) is feed and veterinary service using, labor saving, and output augmenting. However, the scale effect of vertical integration was found to be higher in layers production than what obtains in broilers and cock|cockerel productions. [EconLit citations: Q120, D240, R340]. © 2009 Wiley Periodicals, Inc.
Volume (Year): 25 (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dalton, Timothy J. & Masters, William A. & Foster, Kenneth A., 1997.
"Production costs and input substitution in Zimbabwe's smallholder agriculture,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 17(2-3), December.
- Dalton, Timothy J. & Masters, William A. & Foster, Kenneth A., 1997. "Production costs and input substitution in Zimbabwe's smallholder agriculture," Agricultural Economics, Blackwell, vol. 17(2-3), pages 201-209, December.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, November.
- Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-88, September.
- M. den Ouden & Aalt A. Dijkhuizen & Ruud B.M. Huirne & Peter J.P. Zuurbier, 1996. "Vertical cooperation in agricultural production-marketing chains, with special reference to product differentiation in pork," Agribusiness, John Wiley & Sons, Ltd., vol. 12(3), pages 277-290.
- Jay T. Akridge & Thomas W. Hertel, 1986. "Multiproduct Cost Relationships for Retail Fertilizer Plants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 928-938.
When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:25:y:2009:i:1:p:1-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.