Variations in Profitability of Different Size of Commercial Broiler Poultry Farms in Central Region of Khyber Pakhtunkhwa
Variations in Profitability of Different Size of Commercial Broiler Poultry Farms in Central Region of Khyber Pakhtunkhwa
Mian Muhammad Arif* and Malik Muhammad Shafi
ABSTRACT
Profit maximization is one of the common objectives of business enterprises, which is grossly dependent on resources utilization. This study was carried out to determine the profitability of different size of commercial broiler poultry farms in central region of Khyber Pakhtunkhwa. A total of 105 sample broiler poultry farms were selected through random sampling technique and data were collected for 483 flocks by means of interview schedule. Descriptive statistics was used for general analysis, while budgetary technique was used for profitability analysis. Ordinary Leased Square (OLS) technique was employed to find the effect of different inputs on profit of broiler poultry farms. The ANOVA tool was used to know the variations in cost, revenue and profit of various size of commercial broiler poultry farms. Due to wide spread variations in cost and return pattern of various broiler poultry farms, subsequently, the farms have been divided into three major groups i.e. small, medium, and large size farms. It is evident from the results of partial budgeting that the average total cost per flock of small size broiler poultry farm was 1468290 rupees while the total average cost per flock of medium and large size broiler poultry farms were 2485249 and 4792247 rupees respectively. Feed was the major cost component of the broiler farms with more than 60% share in the total cost of production followed by chick cost with a percentage share of 19.72. Furthermore, figures showed the average total revenue, cost and profit of different size commercial broiler poultry farms. The empirical results of the log-transformed function show that cost of labour, day-old chicks, feed and flushing cost have a significant effect on the revenue of broiler poultry production while all other variables i.e. medicare, and miscellaneous cost turned out to be insignificant. The ANOVA results showed a statistically significant difference between the costs, revenue and profit of various sizes of broiler poultry farms at 5% level of significance. It is recommended that farmers should be provided loan facilities with a low-interest rate.The profitability of broiler poultry farms can be increased by reducing high mortality rate through proper vaccination, medication, and better management techniques.
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