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Authors: Olasunkanmi M. Bamiro, Adebayo M. Shittu

Wiley InterScience (www.interscience.wiley.com)

ABSTRACT

In this article,the in fluence of vertical integration on cost behavior in poultry farming in southwestern Nigeriais examined. The study was based on primary data obtained incross-section survey of 211 randomly selected poultry farms in the study area. An average farmer in the sample was 44 year sold; 85% were males and 72% hadtertiary education. An average poultry farming 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 out put augmenting. However,the scale effect of vertical integration was found to behigher in layers production than what obtains in broilers and cock/cockerel productions. [EconLitcitations: Q120, D240, R340]. r 2009 Wiley Periodicals, Inc.

 

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