Determinants of Poverty Status among Broiler Farmers in Calabar Metropolis, Cross River State, Nigeria

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1 IOSR Journal of Agricultur and Vtrinary Scinc (IOSR-JAVS) -ISSN: , p-issn: Volum 8, Issu 3 Vr. II (Mar. 2015), PP Dtrminants of Povrty Status among Broilr Farmrs in Calabar Mtropolis, Cross Rivr Stat, Nigria EkanmAbasikongEtuk*, MfonobongOffiongNkang andekanm Ptr Hnshaw Dpartmnt of Agricultural Economics and Extnsion,Univrsity of Calabar,Calabar, Nigria Abstract: Th objctiv of this study was to dtrmin th povrty status of broilr farmrs in Calabar Mtropolis in Cross Rivr Stat. Th spcific objctivs wr: To assss th socio-conomic charactristics of th broilr farmrs, stimat th povrty status of ths farmrs in th study ara, and stimat th dtrminants of povrty among th broilr farmrs in th study ara and to mak rcommndation basd on findings. Dscriptiv statistics and logistic rgrssion modl wr usd to valuat th xtnt of th impact of variabls such as sx, marital status, ducation, farming xprinc, numbr of birds, accss to improvd brds and ownrship of assts of broilr farmrs in Calabar South and Calabar Municipality of Cross Rivr Stat. Structurd qustionnairs wr administrd on 47 hads of houshold of broilr farmrs to gnrat primary data. Basd on th rsults, thr of th logit cofficints wr significant at 10% lvl of significanc in prdicting if a broilr farmr was poor or non-poor and four othr variabls wr significant at 5% lvl. Th stimatd adjustd R 2 valu of indicats that th strngth of association btwn th indpndnt and th dpndnt variabls is about 79.4%.Th study suggst that improving th broilr farmrs socioconomic status would nhanc thir productivity and incras profitability thus rducing th povrty rat among thm. Kywords:Broilr farmrs, povrty status, logit cofficints *Corrsponding author:kanmtuk@gmail.com I. Introduction Rcntly, combating povrty is high on th agnda of govrnmnts and th intrnational community. Th Millnnium Dvlopmnt Goals (MDGs) is spcifically aimd at having th numbr of popl living in povrty by Th livstock subsctors can play a major rol in achiving this goal. Poultry is th largst livstock group and is stimatd to b about 14,000 million consisting mainly of chickns, ducks and turky (FAO, 1999). Povrty is on of th most srious manifstations of human dprivation and is intricatly linkd to human capital dvlopmnt. Th World Bank stimat that about 950 million popl in dvloping countris liv in condition of povrty. Ovr half liv th rgion of South Asia (ovr 350 million) and East Asia (150 million). Anothr 280 million absolut poor liv in largly rural aras of Sub- Saharan Africa. In Europ, Middl East, and North African rgion as wll as th rgion of Latin Amrica and th Caribban, povrty is stimatd to afflict a lot of popl. Dspit Nigria s plntiful agricultural rsourcs and oil walth povrty is widsprad in th country and has incras sinc th lat 1990s. Som 70 prcnt of Nigrians liv on lss than US$ 1.25 a day. Povrty is spcially svr in rural aras whr up to 80 prcnt of th population livs blow povrty lin. According to th Human Dvlopmnt Rport of th Unitd Nations Dvlopmnt Programm (2005), th povrty situation in Nigria has bn on th incras sinc 1980 (Fdral Burau Statistics (FBS), 1999). In total, poultry products (ggs and mat) contribut 30% of all animal protin consumd worldwid poultry is th most commonly kpt livstock and ovr 70% of thos kping livstock ar rportd to kp chickns (Armar-Klmsu& Maxwll, 2000; Etim&Udoh, 2006). With incras in population and th corrsponding dcras in marginal productivity of land, coupld with a rcnt govrnmnt policy aimd at incrasing th Caloric intak pr caput pr prson to 2,200kcal of crud protin consumption of btwn 60 and 65 grams, as wll as adquat proportionat incras of animal protin rlativ to protin from othr sourcs, poultry production ntrpriss has in rcnt tims formd a major crux of most govrnmnt povrty allviation programms. Ths has mad broilr production to bcom mor attractiv both to rural and pri-urban dwllrs. In Cross Rivr Stat Broilr production is particularly a common fatur of both rural and pri-urban aras. Th Lacuna and limitd undrstanding of th undrlying causal mchanism linking povrty and broilr production promptd th focus of this study on th sctor. DOI: / Pag

2 II. Concptual Framwork In stimating th dtrminants of povrty in th study ara, w rly on th rlativ povrty approach, using th incom of Broilr Farmrs to ascrtain thir povrty status, which also srvd as th Dpndnt variabl in th Logistic Rgrssion analysis. To dtrmin th povrty status of th broilr farmrs, which ssntially rquirs classifying thm into poor and non-poor catgoris, w follow th NBS, 2005 and 2012, in stimating th Two-Thirds of th Total Pr Capita Expnditur (Incom) or th rlativ povrty lin. P-alpha povrty masur (Fostr-Grr-Thorbck indx) was usd for th masurmnt of povrty among th rspondnts whil th binary logistic rgrssion modl was usd to stimat th dtrminants of povrty among broilr farmr housholds. Following Fostr-Grr-Thorbck (1984) and World Bank (1996); n 1 Z Ypi P qi n i1 Z (1) Whr Z is th povrty lin valu;y pi is th incom of th ith poor groups of prsons; n is total population; n is numbr of incom arning group blow th povrty lin; q i is numbr of prsons in th ithgroup blow th povrty lin q = q i ; is th numbr of incom arnrs blow th povrty lin. Th analysis of povrty status using FGT masur of povrty involvs th ranking of incom in ascnding ordr of magnitud such that Y 1i Y 2i Y qi <Z i Y (q+1) i. Y ni This class of povrty masur is flxibl in two ways. On, α is a policy paramtr that can b varid to approximatly rflct povrty avrsion and two, th P α class of povrty indics is sub-group dcomposabl. In particular, whn α= 0 P o =q/n =H (2) Whr,H is th had-count ratio, that is, th proportion of total incom rciving units blow th povrty lin. Whn α = 1, th povrty masur bcoms th povrty-gap indx (PG) 1 P α - 1 = PG = n Z Ypi qi n i1 Z = HI (3) 1 Whr I = n Z Ypi q q i1 Z = HI (4) is th incom gap ratio. I is th man of th povrty gaps xprssd as a portion of th povrty lin. This masur is insnsitiv to incom distribution among th poor, hnc, to rflct th dgr of inquality or svrity of povrty among th poor, a gratr wight has to b givn to th poorst incom-arning units and this is achivd by assigning valus that ar gratr than 1 to α. Whn α = 2, th squard povrty gap indx (SPG) is gnratd givn by, n 1 Z Ypi 2 P α-2 = SPG = qi n i1 Z (5) 2.1 Th Logistic Rgrssion Modl Th logit rgrssion modl is charactrizd by a binary dpndnt variabl with mutually xclusiv and xhaustiv outcoms. Th dpndnt variabl is th povrty status of th rspondnts, which is on if poor and zro if non-poor. Following Maddala (1990) and Babcock t al. (1995), th modl spcification givs ris to a systm of two probabilitisthus: kni jxi 2 Prob Yi j Whr, j = 0 or 1 Expanding quation 1: nx (6) j i Pr ob( Yi j) (7) n0xi ni xi Th quations abov hav intr-dtrminacy problm and nd to b rmovd. W thrfor assum that n 0 in th dnominator is zro i.. n o =0. Thn, n Xi = 1, hnc nx j i Pr ob( Yi j) (8) nx i i 1 DOI: / Pag

3 Pr ob( Y ) nx j i i j 2 nx k i 1 n Thn, th probability of bing in ach group (j = 0 or 1) is: 1 Prob. (Y i = 0) = 2 1 kxi (9) k 1 Prob. (Y i = 1) = 1 2 k 1 1Xi kx i (10) Whr j is a vctor of paramtrs that rlat th xplanatory variabl X i to th probability that Y= j Whr j is a vctor of paramtrs that rlat th xplanatory variabl X i to th probability that Y= j Y i = j = Povrty status of th broilr farmr Thus; Y = Povrty status (catgorical); poor=0 and non- poor =1 X 1 = Sx of houshold had (catgorical covariat) X 2 = Marital Status (catgorical covariat) X 3 = Educational Status (continuous covariat) X 4 = Farming xprinc (continuous covariat) X 5 = Stocking dnsity (continuous covariat) X 6 = Accss to improvd brds (catgorical covariat) X 7 = Ownrship of Assts (continuous covariat) III. Mthodology This study was carrid out in Calabar Municipality and Calabar South Local Govrnmnt Aras of Cross Rivr Stat jointly rfrrd to as Calabar Mtropolis. Calabar Mtropolis is a coastal town lying btwn latitud and 5.15N and Longitud 8.15E of th Equator. Calabar has an ara of 7, 245, 935 sq.km and a population of about 2.4 million. Calabar Mtropolis is an urban ara with high population dnsity, urban crop production and animal husbandry is prdominantly practicd. In this study, th multi-stag random sampling tchniqu was usd to slct broilr farming housholds. Fild survy was carrid out, which involvd a dtaild appraisal of th objctiv was carrid out with th us of structurd qustionnair. Thus, th rspondnts wr mad up of houshold of poultry farmrs which wr randomly slctd within th study ara. A total 47 qustionnair wr administrd in th study ara. Dscriptiv Statistical tools wr usd to analyz th socioconomic charactristics of broilr farming housholds. Fostr-Grr-Thorbck (FGT) and logit rgrssion modls wr mployd to dtrmin th xtnt and lvl of povrty among rspondnts and stimat th ffct of slctd variabls on th occurrnc of povrty among rspondnts. DOI: / Pag

4 IV. Rsults And Discussion 4.1 Socio-Economic charactristicsof Broilr Farmrs in Calabar Mtropolis Tabl 4.1: Distribution of Broilr Farmrs by Socioconomic Charactristics Variabls Frquncy Prcntag Sx of Farmr Mal Fmal Marital Status of Farmr Marrid Singl Siz of Houshold Ag of Farmr Abov Educational Lvl in yars Primary (1-6 yars) Scondary (7-12 yars) Trtiary (abov 12 yars) Farming Exprinc Valu of Assts Ownd Abov Sourc: Fild Survy, Sx distribution among th broilrs farmrs rvald mor fmal (68.1%) compard to thir mal (31.9%) countrparts (Tabl 4.1). This is attributabl to th fact that broilr farming rquirs a small tak off grant which is asily accssibl to womn usually in form of thrift savings thus nabling mor womn to b involvd. Through broilr farming, womn provid substantial support to th family in tims of financial difficultis. Th marital status of th broilr farmrs shows that majority (67.1%) of th broilr farmrs wr marrid. Broilr Farming offrs an altrnativ livlihood option to most marrid womn in th study ara thrby contributing to houshold conomy in trms of incom gnration. Rsult on Houshold siz shows that 70.2% of th broilr farmrs hav family siz of 1 3 mmbrs whil 29.8% has family siz of 4 6 mmbrs indicating availability of family labor for broilr farming oprations. Majority (74.5%) of thos involvd in broilr farming ar in thir activ productiv yar (31-50yars). Only 12.77% of th broilr farmrs ar ovr 50 yars. It can b sn from tabl 3.1 that 70.2% of th broilr farmrs had trtiary ducation, followd by 25.5% with scondary ducation whil only 4.3% had primary ducation. Tabl 3.1 shows that 31.9% of th broilr farmrs ownd assts valud abov on million naira (N 1,000, about $ 6,250) whil 29.8% of thm ownd th lowst rang of assts (N 5000 ($31.25) N150, 000($937.5)). Th rst (38.3%) ownd assts ranging fromn150, 000($937.5) -N 1,000,000($625). Majority of th broilr farmrs (42.5%) had 6-10 yars of xprinc, followd by 0 5 yars (31.8%) whil only 25.5% had yars broilr farming xprinc. Th rsult showd clarly th prdominant involvmnt of xprincd popl in broilr farming in th study ara. This obsrvation coupld with rspondnts yars of broilr farming xprinc of ovr 6 yars (68%) hav cratd a situation whrby broilr farmrs stick to a particular systm of production. DOI: / Pag

5 4.2 Dtrminants of Povrty Tabl 4.2: Logistic rgrssion rsults (Dpndnt Variabl: Povrty Status) Indpndnt Variabls Logit Estimat (b) Odds ratio Exp (b) Standard Error Wald significanc Sx (1) * Marital status (1) * Education ** Farming xprinc ** Numbr of Birds ** Accss to improvd Brads (1) ** Ownrship of Assts * Constants ** Diagnostic statistics Naglkrk R Chi-Squar *** -2 log liklihood No of itrations 12 *** (Significant at 1) ** (Significant at 5%) and * Significant at 10% Diagnostic Statistics Th improvmnt in fit mad by th xplanatory variabls includs in th modl was masurd by chisquar statistics of which is significant at 1% lvl of probability indicating that th indpndnt variabls includd in th modl jointly significantly prdictd th dpndnt variabl in th logistic rgrssion. Th strngth of association btwn th dpndnt and th indpndnt variabls is capturd by th Naglkrk s R 2 which stimatd valu is This indicats that th strngth of association btwn th dpndnt and th indpndnt variabls is about 79.4%. Th rsult of th study shows that thr of th logit (ffct) cofficint is significant at 10% lvl of significanc in prdicting if a broilr farmr in Cross Rivr Stat was poor or non-poor. Ths includ sx, marital status and valu of assts ownd by th broilr farmr. Furthrmor ducation, farming xprinc, numbr of birds kpt. Accss to improvd brds was significant at 5% lvl in prdicting th povrty status of broilr farmrs. Th intrprtation of th cofficint was basd on both logit stimat (b) and th odds ratio. Th rsult (Tabl4.2) shows that th sx of broilr farmrs has a positiv logit ffct of which implis th prdominanc of fmals in broilr farming in study ara that fmal broilr farmrs incrass th liklihood of bing non-poor by tims. Thus th odds ratio of mans that as mor fmals tak to broilr production thir liklihood of bing non-poor will incras by prcnt. This is in accordanc with povrty stimats which indicat that rural houshold hadd by mals is poorr than fmal hadd houshold, with all thr povrty masurs highr for mal hadd houshold in 1996 and W find that th marital status of broilr farmrs has positiv logit ffct of 2.706, implying that if broilr farmrs wr marrid, thir liklihood of bing non-poor incras by tims. Thus th odds ratio of mans that if th numbr of marrid fmal broilr farmrs incrasd by , thn th liklihood of non-poor will incras by 2.706%.Bing marrid with childrn nhancs broilr farmrs to b mor srious about thir businss. This is bcaus of thir financial nds to fd and traind th childrn. Ownrship of assts was not significant in th dtrmination of th povrty status of Cross Rivr stat broilr farmrs. It also carrid a positiv logit cofficint of which mans that th ownrship of assts has no significanc in th prdictions of th povrty status of broilr farmrs. This can b tracd to th fact that most broilr farmrs bing marrid womn lack accss to ky factors of production such as capital, land and information. Womn ar oftn dnid formal crdit systm du to lack of collatral and ar mainly small scal oprators. Thus, th odds ratio of 1.00 indicats that vn if th broilr farmrs incrass thir ownrship of assts by 1.00, it will mak a diffrnc in thir liklihood of bing non-poor. Education is on of th major dtrminants of povrty status of any individual. It significantly affcts th povrty status of Cross Rivr Stat broilr farmrs. Thus is rflctd in th positd logit cofficint of which confirmd th rsult that majority of th broilr farmrs 970.2%) had trtiary ducation. This placs broilr farming among th high skilld businss which mainly th litrat masss in th socity ar involvd. High productivity and wags is a dirct rsult of high ducational attainmnt which in turn incrass th human stock capital. Thrfor incrasing th ducational lvl of th poor will tnd to rduc povrty. This is in lin with th assrtion by Bastos t al. (2009) that povrty is a vicious cycl in that low ducation lad to povrty and povrty is du to low ducation. Morovr, th poor finds it difficult to attain schools, vn which it is publicly providd. This is bcaus of high opportunity cost btwn choosing to go to school and working for survival. Th rsult of this study shows that povrty status of Calabar broilr farmrs was significantly dpndnt on ducational attainmnt bcaus of th high tchnicality involvd in broilr production. It thrfor mans that broilr farming rquirs high lvl of ducation to improv th productivity and dcrass th probability of bing poor. DOI: / Pag

6 This is ncssary sinc high ducational attainmnt will boost th farmrs undrstanding of innovation and nwly improvd tchniqus for bttr prformanc. Thus th odds ratio of implis that if th yars spnt in school incrass by 3, thn th liklihood of bing non-poor would incras by 1 prcnt. Though farming xprinc has a significant input on broilr production and in th prdiction of th povrty status of broilr farming in Calabar yt it has a ngativ logit ffct of which tris to pg th minimum yars ndd to do wll in broilr farming. This may b tracd to unwillingnss in th part of th broilr farmrs to adapt to nwly improvd tchniqus whn it has xprincd in th job. Thus th odds ratio of implis that if th xprinc in broilr farming is incrasd by 0.632, th liklihood of bing poor is rducd by 0.46 prcnt. W find that th numbr of birds kpt by th farmr has a positiv logit ffct of which implis that as th numbr of birds incrass, th probability of bing non-poor also incrass. This is bcaus as th numbr of birds incrass providd all othr variabls of production such as capital, labor and accss to information ar mad adquat thn output would incras rsulting in incras in incom and rduction on povrty status. This assrtion is in lin with that of FOS (1999) and Omonona (2000).Our finding shows that incras in numbr of birds usually translats into highr incom and lowr incidnc of povrty. Thrfor numbr of birds has th odds ratio of (approximatly 1) which implis that as th numbr of birds is incras by on th liklihood of bing non-poor is roughly incrasd by prcnt. Accss to improvd brds has a ngativ logit ffct of 6.680, maning that as accss to improvd brds dcrass, th liklihood of bing poor incrass. This mans that th probability of bing non-poor incrass as th accss to improvd brds incrass, lading to incras in incom as it is a significant contribution in th dtrmination of th povrty status of broilr farmrs in Calabar in particular and in Cross Rivr Stat as a whol. Th implication of accss to improvd brds is that it has bn largly rsponsibl for th incras in broilr production in th stat. In addition to production and productivity, accss to improv brds guarants high quality birds and disas rsistanc, (Thorton, 2010). Th odds ratio of mans that if th accss to improvd brds incrass by 0.001, th probability of bing poor dcrass by prcnt. V. Conclusion This study has confirmd that th dtrminants of povrty status among broilr farmrs in Calabar mtropolis in thir ordr of significanc includ ducation attainmnt, numbrs of stock of birds, farming xprinc and accss to improv brds. Povrty allviation policis should ab initio addrss ths variabls. Othr xplanatory variabls that did not significantly affct th prdiction of broilr farmr s povrty status in th study ara includs sx, ownrship of assts and marital status. Rfrncs [1]. Babcock B.A,Chahrli N.M. and P.G.Lakshminarayan (1995). Programmparticipation and farm-lvl adoption of consrvation tillag: Estimats from a multinomial logit modl. Workingpapr 95-WP136, Cntr for agricultural and rural dvlopmnt, Iowa Stat Univrsity,Ams, Iowa. [2]. Bastos,A., Cascas,S.F., Nuns,F.J.,andPririnha,J.(2009) Womn and povrty: A gndr- snsitiv approach. Th Journal of Socio- Economics.3 (5) [3]. Etim, N. A. and E. J. Udoh, (2006). Efficincy of rsourcs utilization: Th cas of broilr production by urban farmrs in Uyomtropolis. Proc. 40 th Annual confrnc of Agricultural Socity of Nigria. [4]. Fdral Offic of Statistics (FOS) 1999.Povrty profil for Nigria: Fdral Offic of Statistics, Abuja. [5]. Food and Agricultur Organization (FAO) Statistical Databas, and Agricultur Organization of th Unitd Nations, Rom. [6]. Fostr, Jams; Grr, J. and Thorbck, Eric (1984): A class of dcomposabl povrty masurs, Economtrica. 52 (3): [7]. Maddala, G.S. (1990). Limitd dpndnt and quantitativ variabls in conomtrics. Cambridg UnivrsityPrss. [8]. National Burau of Statistics (NBS) (2005).Nigria povrty profil. National Burau of Statistics, Abuja. [9]. National Burau of Statistics (NBS) (2012).Nigria povrty profil. National Burau of Statistics, Abuja. [10]. National Burau of Statistics (NBS) (2013). [11]. Omonona, B. T. (2000) Povrty and its corrlats among farming housholds in KogiStat, Nigria. Unpublishd PhD Thsis, Univrsity of Ibadan [12]. Thorton, P.K (2010). Livstock production: Rcnttrnds, futur prospcts. [13]. Th Philosophical Transition B. Th Royal Socity, availabl onlin at [14]. World Bank (1996). Povrty rduction and th World Bank Progrss and challngs in th 1990s. [15]. World Bank (2000). World Dvlopmnt Rport 2000/2001 attacking povrty. Nw York: Oxford Univrsity Prss. DOI: / Pag