ECONOMIC EFFICIENCY AND PROFITABILITY OF FISH HATCHERY ENTERPRISES IN OSUN STATE, NIGERIA
The study examined the economic efficiency and profitability of fish hatchery enterprises in Osun State, Nigeria.
Primary data were obtained from 189 fish hatchery farmers with the aid of a well-structured questionnaire, using
simple random sampling technique. Data collected were analysed by the use of descriptive statistics, stochastic
frontier profit function and budgetary analysis. Results showed that mean age, household size and years of
experience of the fish hatchery farmers were 46 years, 6 persons and 9 years respectively. The study also found
that the age, educational qualification, household size, fish hatchery experience and membership of cooperative
society were factors affecting farm-level profit efficiency in the use of resources. Economic efficiency of fish
hatchery enterprise ranged from 0.30 to 0.99, with average efficiency level of 0.85. This implies that, on the
average, farmers are able to obtain 85% of potential profit from a given mix of inputs. Results show that net farm
income was ₦86,940.74, and benefit cost ratio of 1.58. Although the enterprises were found to be profitable,
young individuals should be motivated either by provision of soft loans without or low interest rate to venture into
the enterprise for sustainable fish production.