ABSTRACT
The study examined the resource use efficiency in traditional and modern kilishi production in Nigeria. Specifically, it focused on the socio-economic characteristics of the kilishi producers, the inputs being used, the processes involved in kilishi production, the profitability and resource use efficiency as well as the constraints to its production.
Twenty-two and twenty traditional kilishi producers in Bauchi and Kaduna, which are the capital cities of Bauchi and Kaduna States of Nigeria respectively, were identified and were all interviewed using a well structured questionnaire. These gave a total of forty-two respondents. Data on modern kilishi were obtained from the routine production records of Wilberforce University/University of Benin Model kilishi pilot plant in Benin City, Nigeria. The data covering one-year production period (October, 2003 – September, 2004) were collected. Data analysis was done using Descriptive Statistics, Profitability and Break-even Analysis, Average and Marginal Cost Analysis, Multiple Regression Analysis, as well as Average and Marginal Product Analysis.
The results of the study showed that all the 42 traditional kilishi producers were males and married with average age of about 40 years and average family size of 14 persons. About 52% of them had no formal education. Their average year of experience in kilishi production was about 21 years. The average labour workforce for the traditional kilishi producers was 9 persons as against 3 persons for the modern kilishi. The net profit per batch of kilishi produced with the traditional method was higher than with the modern method - N23, 438.00 as against N13,481.00 respectively. These represent about 52% and 45% of their total cost of production respectively, implying a 7% higher profit margin per batch with the traditional method. The break-even analysis showed that the traditional method used only about 6% of its production capacity to break-even as against 38% for the modern method. However, the marginal cost analysis showed that every additional unit of modern kilishi output to the total output generated a net profit higher than that with the traditional method by about N2,023.00 suggesting that as the scale of production is increased, the modern kilishi production method becomes more profitable than the traditional method. No profit was maximized under both methods suggesting that resources were not efficiently utilized (Ratios of Marginal Revenues to Marginal Costs = 1.70 and 2.32 for traditional and modern methods respectively). With the traditional kilishi production, meat and ingredients were underutilized as reflected by their marginal value products to factor costs ratios (3.71 and 3.44 respectively) that are greater than one. Labour was over-utilized with efficiency level (0.46) less than one. The major problems identified with kilishi production were lack of meat slicing machines and inadequate finance. The need to fabricate meat slicing machine for kilishi production and the provision of adequate financial support to kilishi producers were stressed.
