economic benefit of farmers from small-scale broiler and layer ...

BANGLADESH RESEARCH PUBLICATIONS JOURNALISSN: 1998-2003, Volume: 8, Issue: 4, Page: 191-195, July - August, 2013ECONOMIC BENEFIT OF FARMERS FROM SMALL-SCALE BROILER ANDLAYER FARMING OF THAKURGAON DISTRICTMd. Masud and Iftekharul Islam Real 1 *Md. Masud and Iftekharul Islam Real (2013). Economic Benefit of Farmers from Small-Scale Broiler and LayerFarming. Bangladesh Res. Pub. J. 8(4): 119-195. Retrieve fromhttp://www.bdresearchpublications.com/admin/journal/upload/1308402/1308402.pdfAbstractThe study was conducted on the basis of field level data from farmers ofThakurgaon district. It revealed that the total fixed cost per layer of layer farm wasTk. 370.77 that accounted, 19 percent of total cost. In case of broiler farms, thetotal fixed cost per broiler was Tk. 1.94 that accounted, 1.38 percent of total cost.The total variable cost per layer was Tk. 1579.56 that accounted, 81 percent of thetotal cost of the layer farm. The total variable cost per broiler was Tk. 138.79 whichaccounted 98.62 percent of the total cost. The study showed that total cost perlayer was Tk. 1950.33. In case of broiler farms total cost per broiler was Tk. 140.73and total net return per layer was Tk. 263.81. In case of broiler farms, the net returnwas 13.82. The cost-benefit ratio was 1.15 for layer and 1.10 for broiler farms. Theresult showed the layer farms were more profitable than the broiler farms in thestudy areas.Key words: Fixed cost, variable cost, net return, broiler and layer.IntroductionThe contribution of livestock and poultry to GDP and foreign exchange earning wasestimated to be 3.86 and 4.31 percent respectively in 1995-96. They jointly provide full timeemployment to about 20 percent of the population and about 50 present people areassociated with this sub-sector as part-times job (GOB, 1999). Poultry meat alonecontributes 29 percent of the total meat production in Bangladesh (BBS, 2001). On theother hand, Poultry contribute about 22 to 27 present of total animal protein supply inBangladesh (Ahmed and Haque, 1990). It is known that the total production of meat is0.62 million metric tons and total egg production is 3,252 million. The annual deficit ofmeat is about 5.08 million metric tons while the annual deficit of egg is 9,997 million (GOB,1999). Therefore the shortage of the vital foods clearly indicates the potentiality as well asprospects to increase the production of poultry and livestock products. The poultryproduction in Bangladesh currently estimated to be 140 million chicks and 13 million ducks(FAO, 2003). On the other hand more than 130 hatcheries are producing 3.4 millions ofday-old-chick (DOC) per week. Thirty thousand commercial broiler and layer farmssupplying 0.26 million metric tons of poultry meat and 5,210 millions table eggs per year(GOB 1999). In view of the above scenario in Bangladesh, the poultry farming might playa crucial role. Poultry can efficiently and rapidly meet the shortage of protein, as theproduction proposition requires lesser time and small investment. Poultry production hasattained an important place in agricultural-economy of Bangladesh, through contributionto Gross Domestic Product (GDP) and employment especially in rural and urban areas. Itis also contributing highly nutritious protein food at relatively cheaper price for humanpopulation. A tendency to initiate small-scale commercial poultry farming in rural areas isincreasing to meet the growing demand for poultry products. However, expansion ofpoultry farming in particular locations should be based on financial analysis ofperformance of the poultry farms. However, little is known about the comparativeperformance of rearing broiler and layer, particularly in the area selected for the presentstudy. So the present study was undertaken with the following objectives: to determine thecost-benefit ratio of small farms and to compare the profit between broiler and layerfarm.faculty of Animal Science and Vaterinary Medicine, Hajee Mohammad Danesh Science and TechnologyUniversity,

Economic Benefit of Farmers 193Table-1 Fixed cost, variable cost, total cost, total gross returns and net return per layer (1.5 year)ParticularsFarm 1(Flock size 250)Farm 2(Flock size 289)Farm 3(Flock size 310)Average costper layer (Tk.)(Average flocksize 283)A. Fixed cost1. Depreciation on building (@ 5%) 7.97 (0.41) 7.41 (0.39) 7.85(0.40) 7.76(0.40)2. Depreciation on equipment (@ 10%) 2.57 (0.13) 2.65 (0.14) 2.85 (0.15) 2.69(0.14)3. Interest on fixed capital (@4.5) (As the total capital spent was his own, so 8.6 (0.44) 7.74 (0.40) 7.66 (0.39) 8(0.41)the bank interest rate was included which was 4.5%)4. Cost of layers up to laying stage 360 (18.31) 3.37 (17.45) 360 (18.43) 352.33(18.06)Total fixed cost 397.14 (19.28) 354.82 (18.37) 378.36(19.37) 370.77(19)B. Variable cost1. Feed cost 1386 (70.49) 1386 (71.74) 1386(70.97) 1386(71.07)2. Labour cost 80 (4.07) 73.1 (3.81) 72.58(3.72) 75.23(3.87)3. Electricity charges 31.8 (1.62) 29.98 (1.55) 30.38(1.56) 30.72(1.58)4. Medication and vaccination cost 16.9 (0.86) 15.38 (0.80) 14.74(0.75) 15.67(.80)5. Miscellaneous charges 4.00 (0.2) 4.07 (0.21) 3.09(0.16) 3.72(0.19)6. Interest on working capital (@4.5 %) (As the total capital spent was his own, 68.35 (3.48) 67.91 (3.51) 67.8(3.47) 62.02(3.49)so the bank interest rate was included to be 4.5%)Total variable cost 1587.05 (80.72) 1577.04 (81.63) 1574.59(80.63) 1579.56(81)Total cost (A+B) 1966.19 (100) 1931.86 ( 100) 1952.95(100) 1950.33(100)c. Gross returns Average returnper layer(Tk)1. Return from eggs 1965.60 (88.77) 1944 (89.13) 2003.4(89.15) 1971(89.02)2. Other returnsa. Returns from old birds or disposal value of culled birds 220 (9.94) 210 (9.63) 218(9.70) 216(.76)b. Value of manure 19.13 (0.86) 17.85 (0.82) 17.4(0.77) 18.13(0.82)c. Value of gunny bags 9.57 (0.43) 9.12 ( 0.42) 8.35(0.37) 9.01(0.41)Total gross returns 2214.30 (100) 2180.97 (100) 2247.15 (100) 2214.14(100)Net returns 248.11 249.11 294.2 263.81* Figures in parenrheses represent percent of total costhttp://www.bdresearchpublications.com/journal/

Economic Benefit of FarmersSummaryBroiler is one of the important food items of mankind. In respect of nutrition, poultry meat isan excellent source of protein of high biological value as it contains the most essentialamino acids, fat, minerals and vitamins which are the most nutritious for human body. Thepoultry can be raised throughout the year with relatively less capital and small area ofland. In a shorter period of time it can help to satisfy the multiple economic needs of thepoultry farmers. The average total cost per layer for 1.5 year was estimated at Tk. 1950.33and broiler for 1 year Tk 140.73 respectively. The average gross returns per layer and broilerestimated at Tk. 2214.14 and Tk. 153.5 respectively. However, the average net returns perlayer and broiler were estimated Tk. 263.81 and Tk. 13.82 respectively. The average costbenefitratios of layer and broiler farms were 1.15 and 1.10 respectively.RecommendationsTo overcome the difficulties of poultry farming and to make the poultry farming moreprofitable, the owners of the poultry farms made the following suggestions:• The government and non- government organizations should play a vital role inmaking poultry feed easily available in the country.• In order to provide necessary veterinary services to the owners of poultry farms, thegovernment should establish new veterinary care centers with adequateveterinary technicians, field assistants and modern logistic supports.• For the greater interest of the poultry industry, the government should givenincentives to the private pharmaceutical companies to come forward to supplynecessary medicines and vaccines and vitamin for poultry raising at reasonableprices.• To get rid the problem of credit, the provision of short-term loan on easy terms forpoultry farming should be made with immediate effect.• Since most of the poultry farmers did not have formal training on farmmanagement, poultry husbandry and poultry diseases and its control, short termtraining courses on those topics may be arranged by the Department of LivestockServices (DLS) of the government and NGOs. If these training programs becomeeffective, the profitability of poultry farming is expected to improve.• Poultry farm owners suggested that regular supply of electricity should be ensured.ReferencesAhmed, S. and Haque, Q. M. E. 1990. Available feed resources for small scale poultry andduck production. Proceedings of the International Workshop on Crop AnimalFarming System Research, Asian Farming System Net-Work, Dhaka, Bangladesh.BBS, 2001. Statistical Year Book of Bangladesh, Bangladesh Bureau of Statistics, Ministry ofPlanning, Government of the Peoples Republic of Bangladesh, Dhaka.Begum, D. 2004. Analysis of cost and returns in poultry farming at smallholder productionunits in some selected area at Muktagacha Upazilla in Mymensingh district. M.S.Thesis, submitted to Department of Poultry Science, Bangladesh AgriculturalUniversity, Mymensingh.Bhuiyan, M. U. 1999. An Economic Analysis of Small-Scale Poultry Farming of KotwaliThana in Mymensingh District, M.S. Thesis, submitted to Department of AgriculturalEconomics, Bangladesh Agricultural University, Mymensingh.FAO, 2003. Food and Agricultural Organization. Production Yearbook. Vol. 56:152-153.GOB, 1999. The Reported on the Economic Survey of Bangladesh, Ministry ofFinance, Government of Peoples' Republic of Bangladesh, Dhaka.Karim, M. R. 2000. An economic analysis of broiler enterprise under contract farming inan area of Bangladesh. M.S. Thesis, submitted to Department of AgriculturalEconomics, Bangladesh Agricultural University, Mymensingh.Kumar, V. P. and Mahalati, S. 1998. Cost analysis of layer farm in South-West MadhyaPradesh, Indian Journal of Poultry Science. 33(1): 110-112.Nair, B. C. and Ghadoliya, M. K. 2000. Economic viability of layer farming in the state ofGoa. Indian Journal of Poultry Science, 35(1): 73-76.195http://www.bdresearchpublications.com/journal/