ABSTRACT
The study analysed the economics of battery cage system of chicken egg production in Lagos State, Nigeria. The objectives of the study were to describe the socio-economic characteristics of chicken egg farmers, determine the profitability of chicken egg production under the battery cage system, analyse the production efficiency in battery cage system of chicken egg production, determine factors affecting inefficiency of chicken egg farmers under the battery cage system and identify constraints faced in the production system. A multi-stage sampling procedure was used in selecting 351 battery cage chicken egg farmers from the study area. Data were collected from primary source using structured questionnaire. Data collected were analysed using descriptive statistics, budgetary techniques, stochastic production and cost frontiers and information from the Likerttype scale. The results revealed that 55.3% of the farmers were male. The mean age of farmers was 48 years. Also, majority of the farmers (72.1%) were married, with a mean household size of four members. Many (68.9%) reported that they bought their stock at point of lay. The mean stock size was 955 birds. The results also showed that 63.53% of the farmers kept their birds for 61-81 weeks before disposing them. The gross margin was ₦15,426,327.53, net profit was ₦14,262,608.34 with a ROI and Gross Ratio of 97.51% and 0.51 respectively. Also, the gross margin per crate was ₦806.43, and net profit per crate was ₦686.47. The mean score for the technical, cost, allocative and economic efficiencies of the farmers were 0.9694, 1.655, 0.69 and 0.67 respectively. Quantity of Feed was positively significant to technical efficiency and age of farmers was significant to technical inefficiency. Cost of chicken flock, cost of drugs/vitamins, and cost of feed were statistically significant to cost efficiency. Also, age of farmers, level xvi of education and farming experience were significant to inefficiency. High cost of transportation, poor road network, insufficient credit facilities, insecurity, high cost of feed, and high cost of drugs were the most serious constraints. It was recommended among others, intervention of government on road network to aid easy and cheap transportation, and youth participation in egg production.
