This study was conducted to assess the comparative efficiency of Aftab
Bahumukhi Farm Limited (ABFL) supervised broiler farms and farmers’ own
managed broiler farms. Data were collected from randomly selected 90 broiler
farmers of which 45 were ABFL supervised farmers and 45 were own managed
farmers. Cobb-Douglas stochastic production function and cost frontier function
were applied to determine the technical, allocative and economic efficiency of
broiler farming. Technical and economic inefficiency effect models were also
estimated. The estimated mean technical efficiency of all farms was 94.06
percent. Whereas it was 94.49 percent for ABFL supervised farmers and 93.66
percent for the own managed broiler farm owners. The estimated mean
allocative efficiency was 96.76 percent for all farmers, and 96.51 for ABFL
supervised farmers and 96.45 percent for own managed broiler farm owners.
The mean economic efficiency was estimated at about 91.60 percent for ABFL
supervised farmers, 90.34 percent for own managed farmers and 91.00 percent
for all farmers. This implies that the cost of broiler production per farm can be
reduced by 9 percent keeping the output constant. The findings reveal that
ABFL supervised farmers and own managed farmers were not significantly
different in terms of efficiency.
level. On the one hand the objective may be more legitimately quantified
in monetary terms, and the techniques of operations research more
readily applied; while on the other hand the numerous profit-making
avenue open to the firm will possibly tend to obscure that part of its
operations relating directly to the primary production phase.