Economic Analysis of Broiler Farming: Feed Utilization, Profitability, and Production Constraints in Kanpur Dehat District

Abstract

Commercial broiler farming in Kanpur Dehat district was assessed to know the feed utilization efficiency, profit evaluation, resource use efficiency and major constraints in broiler production system under various farm size. Thirty farms were sampled and classified as small, medium and large farms and data were collected and analyzed by descriptive statistics, cost – return measures, correlation, regression, marginal value product – marginal factor cost ratio and constraint ranking. Results indicated that feed consumption was directly related to farm size, and feed conversion ratio was better on small farms at 1.65 compared to 1.60 on large farms. The best feed conversion ratio was achieved in the winter, while the summer showed a comparatively poor feed conversion ratio. Among the total production cost, feed was the major component, and the most significant factor on broiler output. Positive net returns were achieved on all farm categories with benefit–cost ratios increasing from 1.03 on small farms to 1.06 on large farms. The results of the regressions accounted for 91% of the variation in output and the estimates of the resources used showed potential for greater investment in feed, chicks, labour, and health care. Feed cost, chick cost, outbreaks of disease, fluctuations in market prices and medicine cost were the major limiting factors. Better feeding, disease control, technical assistance, low-cost inputs, and better market linkage are therefore crucial for improving profitability and the continued production of broilers in the district in the future.