Optimizing Costs: How Biosecurity Measures Transform Smallholder Poultry Economics

Abstract

Attempts to manage poultry diseases through clinical treatment are both costly and increase the risk of antimicrobial resistance (AMR). This study was motivated by the need to tackle the dual challenge of diseases leading to AMR and low poultry productivity in Sub-Saharan Africa. It assesses the cost efficiency of farmers who use varying levels of biosecurity measures. We employ a three-step estimation procedure: first, a latent class analysis (LCA) model to describe adoption patterns. Secondly, a stochastic frontier analysis is used to generate cost efficiency scores and inefficiency effects. Lastly, a one-way ANOVA is used to compare cost efficiency by adoption categories. The LCA model reveals three uptake patterns for biosecurity measures with low, moderate, and high adoption behaviors. The average cost efficiency scores are 49.5%, 61.6%, and 68.6%, respectively, for the low, moderate, and high adoption categories. The overall score of 60.4% indicates that poultry farmers in Nyanza are largely cost-efficient. We demonstrate from the observed pattern that there is room to improve cost performance through increased use of biosecurity measures. Years of experience in poultry farming and larger stock sizes reduce farm cost inefficiency. These findings form the basis for the promotion of biosecurity measures