Competitiveness of Beef Cattle Production Systems in Nigeria: A Policy Analysis Approach

Author(s): Cecilia Nwigwe, Victor Okoruwa, Kemisola Adenegan, Adeola Olajide

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Abstract: This study assesses the competitiveness and comparative advantage of the major beef cattle production systems in Nigeria, using the policy analysis matrix (PAM) on a sample of 339 farmers. Results of the PAM revealed that all the production systems are competitive, given their level of technology, input and output prices. The financial cost benefit ratio (FCBR) of less than one revealed that financial profit (FP) was maintained in all the production systems; however, the ranching system was the most competitive in terms of FP as well as the FCBR, which was found to be 0.064. Social profitability (SP), domestic resource cost (DRC) and social cost benefit ratio (SCBR) of less than one also suggest that Nigeria has comparative advantage in producing beef cattle within the three production systems. Sensitivity analyses showed that a 20 percent increase in freight on board (FOB) and a 20 percent depreciation of the domestic currency will increase competitiveness and comparative advantage of beef cattle production in all the production systems. The study recommends that government should ensure a level of policy stability in the beef cattle sector and also encourage the ranching system when production is targeted at improving national income.