Broiler Production in Punjab — An Economic Analysis§

The cost and return analysis of different sizes of broiler farms in the Punjab state has been carried out based on the primary data collected from 140 broiler farmers for the period March 2008 to February 2009 in three districts, viz. Ludhiana, Hoshiarpur and Muktsar. The study has shown that the total fixed investments per bird have been highest on small farms, followed by medium and large farms. The total variable cost per bird has been reported highest on small farms, followed by medium and large farms. The total cost of meat production per bird has been found highest on small broiler farms, followed by medium and large farms. The net returns per bird over the variable costs have been recorded highest on large farms and economies of scale prevail on these farms. The meat-feed price ratio and benefit-cost ratio have been found to increase with increase in farm-size of broiler farms, which indicates better utilization of inputs on large farms. On the basis of net present value, benefit-cost ratio and internal rate of return, investment in broiler farming has been found profitable in all farm-sizes, it being most profitable on large farms, followed by medium and small farms. The small broiler farms have been observed highly sensitive to increase in costs and decrease in net returns. The study has observed that broiler farming is a profitable venture and has a bright future in the Punjab agriculture for improving economic status of the farming community