Analysis of Technical Efficiency of Smallholder Broiler Farms in San Jose, Batangas, 2024

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nora DM. Carambas

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

The study aimed to analyze the technical efficiency of smallholder broiler farms in San Jose, Batangas. The specific objectives of the study were: (1) to determine the socio- economic characteristics of smallhold broiler raisers and the characteristic of their farms; (2) to assess the productivity of smallholders’ broiler farms; to examine the management practices of smallhold broiler raisers; (3) to evaluate the level of technical efficiency of smallholders’ broiler farms; and (4) to identify the factors affecting the technical efficiency of smallhold broiler farms. Thirty-three (33) smallhold broiler raisers were completely enumerated and interviewed. Descriptive analysis using percentages, frequencies, and averages was used to describe socio-demographic characteristics of the farmers, institutional services, feed conversion ratio, and farm input and output utilization. Technical efficiency ratings of individual farmers were computed based on parameter estimates of the Cobb-Douglas stochastic frontier production function, Ordinary Least Squares (OLS) and Maximum Likelihood Estimates (MLE). Test for heteroskedasticity, multicollinearity, and omitted variable bias was conducted using the Breusch-Pagan Test, Variance Inflation Factor, and Ramsey Regression Equation Specification Error Test, respectively.

Results of the study showed that day-old chicks, farm size, labor, and feeds had a statistically significant effect on output at a one percent level of probability. It was also found out that the mean technical efficiency is 85.5 percent which implies that smallhold broiler raisers in San Jose, Batangas reached 85.5% of the maximum potential output given the farmer’s resources and technology. The variables for the technical efficiency model such as educational attainment and farming experience in broiler raising were found to be significant at 5 percent and 10 percent levels of probability, respectively. Moreover, the study found that farmers with a high level of technical efficiency typically had a lower feed conversion ratio compared to those with lower technical efficiency. Despite overall efficiency, the study indicates that not all farmers within the efficient frontier use optimal management practices. While these farmers are technically efficient, they may not employ the best or most innovative methods. The conclusion highlights similarities in management practices among smallholder farms, suggesting homogeneity. This implies room for improvement through adopting better or more advanced techniques.

To improve technical efficiency among broiler farmers, several measures are recommended. Enhancing educational programs on modern farming techniques and management practices is crucial. The municipality of San Jose, with the Department of Agriculture Region IV-A, can offer targeted training courses. Improving access to high- quality inputs, like robust day-old chicks and superior feeds, is essential. Optimizing farm layouts can maximize space and improve workflows. Training labor in best practices and introducing labor-saving technologies can boost productivity. Mentoring and information exchange platforms can foster collaboration and innovation. These measures can significantly enhance the efficiency and productivity of smallholder broiler farmers in San Jose, Batangas.

Language

English

LC Subject

Broilers (Chickens), Agriculture

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 B38

Notes

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Document Type

Thesis

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