DEPARTMENT OF AGRICULTURAL ECONOMICS

COLLEGE OF AGRICULTURE, DAPOLI

Title of Thesis : Economics of Broiler Poultry Production in
South Konkan region
Name of Student : Nikhil Pandurang Patil
Regd. No. : 2305
Name of the : Dr. D. B. Malave
Research Guide Assistant professor,
Dept. of Agril. Economics,
College of Agriculture, Dapoli.
Year of award : 2015
of degree

THESIS ABSTRACT

The present study entitled, „Economics of broiler poultry

production in South Konkan region‟ was undertaken with the specific
objectives such as present use of resources, cost returns and
profitability, resource use efficiency, problems in production and
disposal in broiler poultry production with a sample of 60 broiler
poultry owners. Data collected were divided into three categories viz.
small, medium and large groups. The data pertained to the
agriculture year 2013-14.

Per farm fixed capital investment on broiler units in small,

medium and large groups, was Rs. 8,82,615, Rs.10,11,043 and
Rs.12,04,350 respectively. Whereas at overall level it was
Rs.9,90,890, out of which Rs.2,84,301 was invested on buildings,
Rs.17,255 was invested on equipment and implements and Rs.12,458
on other miscellaneous items. Whereas per bird investment on fixed

capital assets was Rs.12.64, Rs.12.60 and Rs.12.50 in small, medium

and large broiler poultry units respectively. However at the overall

level it was Rs.12.60.
The per farm total cost of production was Rs.6,32,115,
Rs.10,53,768 and Rs.20,43,222 in small medium and large groups.
Whereas overall level it was Rs.10,59,430. The per bird total cost of
broiler production was highest on small Rs.144, followed by medium
Rs.132 and large Rs.121 groups respectively. However at the overall
level it was Rs.132 while per kg. cost of production on small, medium
and large was Rs.76, Rs.71 and Rs.70 respectively at overall of Rs.71.

Study revealed that the gross returns obtained from different

size groups were Rs.7,06,012, Rs.12,41,222 and Rs.25,15,195 from
small, medium and large groups respectively whereas at overall level
it was Rs.12,37,076. The per bird gross returns obtained from
different size groups were Rs.161, Rs.156 and Rs.149 from small,
medium and large groups respectively whereas, at the overall level it
was Rs.154.The per kg. gross return obtained from small group was
Rs.85, medium Rs.84 and Rs.86 from large with overall level of Rs.85.
The benefit cost ratios in different size groups were 1.12, 1.18 and
1.23 for small, medium and large groups respectively and at the
overall level was 1.17.
Resource use efficiency in broiler production showed that the
ratios of labour (X1), Feed (X2) and veterinary aids (X4) are greater
than one so they became under-utilized which underlined the scope
of expanding the use of these inputs while the expenditure on
chicks(X3) to be curtailed their over utilization.

The disposal pattern at the overall level showed that out of

14579 kg. production 0.07 per cent quantity (11kg) was utilized for
home consumption, 0.70 per cent quantity (117 kg) were sold to the
local sale, 3.53 per cent quantity (515 kg) were sold to local trader
and 95.51 per cent quantity (139.36 kg) were sold to the wholesaler
respectively.

The major problems faced by broiler farmers in South Konkan

region at overall level was high cost and non-availability of feed in
time (78.33%) followed by price variation and non availability of
chicks in time (68.33%), fluctuation in market prices of birds
(68.33%), delay of receiving payment (60.00%), power supply failure
(electricity) and high labour wages (38.33%).
ECONOMICS OF BROILER POULTRY PRODUCTION
IN SOUTH KONKAN REGION (M.S.)

By
NIKHIL PANDURANG PATIL
B.Sc. (Agri.)

DEPARTMENT OF AGRICULTURAL ECONOMICS,

FACULTY OF AGRICULTURE,
DR. BALASAHEB SAWANT KONKAN KRISHI VIDYAPEETH,
DAPOLI- 415 712, DIST. - RATNAGIRI, (M.S.)

MAY, 2015
 ACKNOWLEDGEMENT

“PRAISE TO LORD JYOTIBA”

In everyone’s life, the day arises when one has to mould their feelings into

words. Sometimes the words become unable to express the feelings of the mind; because

the feelings of the heart are beyond the reach of the words.

At the outset, Words are not enough to describe the deep affection, respect and

gratitude for Chairman of my Advisory committee and Research guide, Dr. D. B.

Malave Sir, Assistant professor, Department of Agricultural Economics for his

scholastic guidance, versatile advice, constant encouragement, mental support,

patience, unfailing co-operation, hard work, kind but constructive criticism and

inspiring discussion throughout the course of my post graduate study gave me this

unique experience of planning, conducting and presenting the research work.

I place on record my cordial thanks to, Hon’ble Dr. B.Venkateshwaralu, Vice

Chancellor, Dr. Balasaheb Sawant Konkan Krishi Vidyapeeth, Dr. R. G. Burte,

Dean, College of Agriculture, Dapoli, Dr. S.A. Chavan, Associate dean, College of

Agriculture, Dapoli for their valuable guidance and provision of necessary facilities for

conducting this study.

It gives great pleasure to express my profound gratitude and heartfelt respect

to my advisory committee members Dr. J.M.Talathi, Head, Department of

Agricultural Economics, Shri. P.G. Mehta, Assistant Professor, Department of

Agricultural Extension, Dr. V.G. Naik, Associate Professor, Department of

Agricultural Economics.

I wish to express my cordial thanks to Dr.J. M. Talathi, Head, Department of

Agricultural Economics, College of Agriculture, Dapoli for his co-operation and

assistance during the course of investigation.

I am deeply grateful to Dr. A.C. Deorukhakar, Dr. S.S. Wadkar, Dr. V.G. Naik

, Dr. S.R. Torane , Dr. V.A. Thorat , Dr. P.J. Kshirsagar, , Dr. J.S. Dhekale , Dr. R.M.

Joshi, Dr. S.S. Bhosale, Mrs. S.M. Kulkarni and other staff members of the

Department of Agril. Economics for their kind help rendered throughout my post-

graduation studies.

I express my heartfelt gratitude towards my beloved Grandfather Late.Shri

Annasaheb Bhagoji Patil, my beloved Grandmother Late Shrimati. Savitri Annasaheb

Patil, my beloved father Shri. Pandurang Annasaheb Patil, my beloved Mother Sau.

Sulochana Pandurang Patil, my beloved uncle Shri. Sitaram Annasaheb Patil, my

brothers Rajendra, Sandip, Abhijeet ,Pramod and my sisters Asmita, Megha, Seema and

also for my dajis Krishnat and Bajirao for their love, support, encouragement and

sacrifice made by them to shape my career and whose long cherished dreams are turning

into reality in the form of dissertation. Their love and affection has been guiding path

of my life.

I express my heartfelt thanks to all my seniors and Ph.D scholars Gore sir,

Raut Sir, Lagare mam, Kedari sir, Shinde mam, Jagadhane Sir, Nitave Sir, Sabnis Sir,

Deshmukh Sir, Surwase Sir, Jawanjal Sir ,my Batchmates Ravindra, Prashant,
Snehal, Preeti, Supriya, Pradnya, Shrutika and Arun and juniors Balvant, Raviraj,

Prafull, Nikhil, Pradip, Pratap, Mohan and Neha for their excellent company during

the post-graduation study.

I express my heartfelt thanks to all my senior M.Sc. Batchmates Swapnil,

Suyog, Praveen, Devendra, Pankaj, Ramesh, Ajay, Abhay, Pratap, Sandesh, Pramod

and lots more and B.Sc Batchmates Anil, Avdhut, Prashant, Manoj, Nitin and for

their excellent company during the post-graduation study.

I am conscious of my debt to them and equally to all my colleagues and friends

who helped me directly or indirectly and offered their excellent company and warm

affections throughout my stay at this Institute.

I end my thanks to all those whom I am able to recall here, also to whom, I am

not able to recall here and also those whom might have left unknowingly.

Now as I carry this thesis in my hand, I carry with me memories that will

enrich my nostalgia.

Place: Dapoli (Nikhil Pandurang Patil)

Date:
 CHAPTER III
SOCIO-ECONOMIC BACKGROUND OF SOUTH KONKAN
REGION

This chapter is devoted to give the socio-economic

background information about the area under study. The study of
background information is necessary to understand the economic
implications of the physical conditions under which production is
carried out. The various factors like topography, location, climate,
rainfall, soil, irrigation, marketing, and communication facilities
decide the stability of particular enterprise in the area. Therefore a
brief account of socio-economic conditions prevailing in the
selected area (South Konkan Region) is given so as to have better
understanding of the region and the interpretation and
implications of findings of the study.

3.1 Location

The South Konkan coastal zone of the Konkan region

comprises districts namely Ratnagiri and Sindhudurg. The zone
lies in between 16030‟ to 18004‟ North and 73019‟ and 74018‟East
longitudes. The zone is along narrow strip of measuring 260 km. In
length and width ranges from 15-60 km. The total area of south
Konkan region is 13,415 sq. km., which accounts for 4.37 per cent
of total area of Maharashtra.

3.2 Boundaries

The region is formed by a narrow belt, running north to south

along western coast of India and lies in between the Sahyadri hills
in the east and Arabian Sea in the west. Beyond the Sahyadri hills,
there are Satara and Kolhapur districts, Raigad district to the
north and Goa state to the south.
3.3 Topography

The zone has an undulating topography with hills and rocky

plains alternating. The whole of eastern and northern parts of the
zone are covered with hills which are continuation of the main
Sahyadri ranges. About 85 per cent of the land surfaces in the
zone are hilly. The important parent rock information of the
districts is Deccan trap, granites and laterites. The laterites have
the largest extent in zone. South Konkan can be divided into three
parts on the basis of physical features viz; a) hilly area of Sahyadri
and its offshoots, b) the plateau surface on which cereal crops like
Rice and Nagli are grown and c) coastal plains where coconut and
arecanut gardens and fishing are the main sources of earning
livelihood. The rivers of South Konkan; viz Savitri, Vashisthi,
Shastri, Tillari and Terekhol flow from east – west and join Arabian
Sea.

3.4 Soil

Lateritic soil is the predominant type of soil in this zone.

Along the seacoast in a narrow belt coastal saline and coastal
alluvial soil occur. The pH of the soil ranges from 5.5 to 6.5,
calcium carbonate is completely absent and the soil is poor in
phosphorus content. The lateritic soil is rich in organic matter and
consequently in nitrogen content. However, the peculiar climate in
the region and acidity of soil lower down the mineralization rate of
nitrogen from the organic matter, as a result, these soils are found
to be responsive to the application of nitrogenous fertilizers. The
soils are fairly supplied with potassium.

In the immediate vicinity of the coast or creeks, the soils are

highly saline and do not supports any crop except the halophytic
bush type vegetation. The coastal saline soils have more than 3 per
cent of total soluble salt and pH of 7.5 to 8.0. The coastal alluvial
soils are clay loamy in texture having pH of 7.0 to 7.5 and total
soluble salt 0.1 to 0.2 per cent. They have good fertility and
support garden crops like coconut, arecanut banana etc. The hilly
high lying terrain has „varkas‟ type soil which is suitable for
cultivation of millets like Ragi, Vari and Oilseed crop like niger and
sesamum. The soils are found in several grades viz; a) soil useful
for rice cultivation b) varkas soils useful for cashewnut, mango and
nagli and c) coastal alluvial soils useful for coconut and arecanut
gardens and d) salty land locally known as Khar or Khajan land.

3.5 Climate

Since the pattern of agricultural development is determined

by the combined effect of rainfall, temperature and humidity, the
characteristics in this respect should be analysed in detail. The
zone has three seasons viz; i) Summer from March to May, ii) Rainy
seasons from June to October, iii) Winter season from November to
February.

3.6 Rainfall

Rainfall in the zone is mainly due to south-west monsoon.

Winter rains from north-east monsoon are negligible or rare,
although rainfall is spread over from middle or last week of May to
November, the important months of rainfall are only four i.e. June,
July, August and September and 97 per cent of the rainfall
receives during these months. The maximum rainfall (33.37%) and
intensity (49.4 mm/hr) are noticed in the month of July. The
variability of the south-west monsoon is 25 per cent. The total
rainfall ranges from 2500 mm to 5000mm distributed in 90 to 120
days in different parts. The maximum dry spells are observed in
the month of September followed by June.
3.7 Temperature

Warm and humid climate is characteristic feature of the

coastal belt. The mean daily temperature is above 20 0C throughout
the year. May, generally the hottest month with mean maximum
temperature around 220C. High humidity in association with warm
temperature from April to October renders the weather
uncomfortable in the absence of wind. Temperature after May till
August is about 4 to 50C the diurnal range in temperature is small
during April to October being less than 70C due to maritime
influence. It however, increases by 10 to 11 0C during November to
march under the influence of northerly dry winds of land origin.
The mean annual range of temperature i.e. variation in mean daily
temperature throughout the year is only 50C.

3.8 Humidity

During rainy season, the humidity is as high as 90-98 per

cent. It is least during winter afternoon when it comes down to 60
per cent.

3.9 Area and population

The total geographical area of the two districts is 13336.30sq.

kms. This is about 4.40 per cent of the total area of Maharashtra
state. The region having average east-west expansion of about 64
km. the average North-south length of South Konkan region is
about 300 km. According to 2011 Population Census the total
population of South Konkan is 24,62,602 and Density of
population per sq. km is 179.5. In the total population, the
proportion of female was higher (52.19%) than male (47.81%). The
sex ratio of the region (female per 1000 male) was 1085. In the
region, high literacy percentage was observed. It was 82.43 per
cent in Ratnagiri and 86.54 per cent in Sindhudurg district.
3.10 Land utilization

The land use pattern of South Konkan is given in the Table

3.1.

Table 3.1 : Land utilization in South Konkan region.

(Area in ha)

Sr. South
Land use category Ratnagiri Sindhudurg Konkan
No. region

1 Total geographical area 8164 5040 13204

(100.00) (100.00) (100.00)

2 Area under forest 60 39 99

(0.74) (0.77) (3.35)

3 Land put to non 210 122 332

agricultural uses
(2.57) (2.42) (10.82)

4 Barren land and land 1980 210 2190

unsuitable for
cultivation (24.25) (4.17) (13.6)

5 Permanent pastures 280 100 380

and other grazing land
(3.43) (2.00) (2.20)

6 Land under 492 352 844

miscellaneous tree
crop and grooves (6.02) (6.98) (6.40)

7 Cultivable waste land 1382 1000 2382

(16.93) (19.84) (15.41)

8 Current fallows 510 203 713

(6.25) (4.02) (5.40)

9 Other fallows 680 656 1336

 (8.33) (13.02) (10.12)

10 Net area sown 2578 1351 3929

(31.60) (26.81) (29.80)

11 Area sown more than 335 420 755

once
(12.98) (8.33) (2.90)

12 Gross cropped area 2913 1771 4684

(Figures in parentheses indicate percentages to total geographical area.)

Source : Socio- Economic Review and District Statistical Abstract of Ratnagiri
and Sindhudurg districts 2012-13.

From the Table 3.1 it can be concluded that there is a good

scope for increasing area under cultivation by bringing the
cultivable waste and other fallow land under cultivation, which is
20.81 per cent of total geographical area. Particularly, on this area,
mango and Cashewnut cultivation should be taken up with the
help of Employment Guarantee Scheme under Horticultural
Development programme. The proportion of area under forest is
also very low 3.35 per cent which need to be increased. As a result,
high proportion of cultivable waste land as well as barren and
uncultivable land and fallow land the proportion of net area sown
to total geographical area was very low (29.80%).

3.11 Cropping pattern

The area under different crops in South Konkan region is

given in Table 3.2.

It is seen from Table 3.2 that cereal crops dominate the

cropping pattern of South Konkan region. Among the cereal crops,
rice is a predominating crop during kharif accounting for 161000
ha. (40.80%) on a limited area, where water is available, the rice is
grown in rabi-hot weather season, usually the mono cropping of
rice is practiced. The proportion of pulses in the total area is only
1.50 per cent. The spices and condiments are grown on 1800 ha.
(0.45%), fruits and vegetables are grown on 66200 ha. (16.85%).
Fruit crops mainly consist of mango and cashew.

Looking to the cropping pattern, it was observed that

cropping pattern of South Konkan region was directed towards
cash crops like mango, cashewnut, coconut, spices and
condiments which results into the higher returns per hectare to
the cultivators of this region.

Table 3.2 : Cropping pattern of South Konkan region

(Figures in 00‟ ha)

Sr. South Konkan

Crop Ratnagiri Sindhudurg
No. region

1 Rice 811 799 1610

(31.46) (59.14) (40.80)

2 Other cereals 301 900 1201

(11.68) (66.62) (30.70)

3 Total cereals 1112 1699 2811

(43.13) (125.75) (71.54)

4 Total pulses 40 19 59

(1.55) (1.41) (1.50)

5 Total foodgrains 1152 918 2070

(cereals + pulses) (44.69) (67.95) (52.70)

6 Fruits and vegetables 297 365 662

(11.52) (27.02) (16.85)

7 Species and condiments 9 9 18

(0.35) (0.70) (0.46)

8 Total food crop 1458 1292 2750

(56.55) (95.63) (69.99)

 9 Total oil seed crops 71 126 197

(2.75) (9.33) (5.01)

10 Total non-food crops 1455 204 3495

(56.43) (15.09) (88.95)

11 Area cropped more than 335 420 755

once
(12.98) (31.08) (19.22)

12 Gross cropped area 2578 1351 3929

(100.00 (100.00) (100.00)

(Figures in parentheses indicate percentages to total gross cropped area.)

Source : Socio- Economic Review and District Statistical Abstract of Ratnagiri
and Sindhudurg Districts 2012-13.

3.12 Irrigation

In South Konkan region gross cropped area is 468400 ha, out

of which total irrigated area are 36440 ha.The percentage of gross
irrigated area to the gross cropped area is only 9.18 per cent. The
main source of irrigation is well.

Table 3.3 : Irrigated area in South Konkan region

(Area in ha.)

Gross Gross irrigated area (GIA)

Sr.
District cropped Percentages to
No. Area (ha)
area GCA

1 Ratnagiri 291300 2530 0.98

2 Sindhudurg 177100 33910 24.34

South Konkan region 468400 36440 9.18

Source : Socio-Economic Review and District Statistical Abstract of Ratnagiri

and Sindhudurg districts 2012-13
3.13 Horticulture

Development of Horticulture is the hope of this region. The

agro-climatic conditions of this region are favourable for cultivation
of mango, cashew, coconut, and arecanut and also spices. In fact,
some farmers have made the good beginning by taking large-scale
plantation of mango and cashew. From the year 1990-91, the
Government of Maharashtra has undertaken massive programme
of plantation of horticulture crops under Employment Guarantee
Scheme since then large area of this region has been covered under
horticultural plantations, which is otherwise being wasted. Up to
the year 2009-10. About 2.80 lakh hectares area was came under
horticultural plantation out of which 1,07,000 ha. under mango,
1,43,000 ha. under cashewnut and about 21,000 ha under
coconut. Considering the export potential of Alphonso mango,
recently Government has declared this region as Agri-Export Zone
for Alphonso mango.

3.14 Agro-industries

The main agricultural products in South Konkan region are

paddy, nagli mango, cashewnut, kokum, jackfruit and arecanut.
These products are of great economic importance. In addition to
these major forest products like bamboo, timber wood, catechu
(katha), grass and some plants of medicinal value are found in the
region.

The South Konkan region is famous for production of best

quality Alphonso Mango and also for cashew, coconut and
arecanut. Alphonso mango and cashew gives seasonal employment
to local peoples for operations such as harvesting, grading,
assembling and distribution of mangoes, drying of cashew nut,
separation of apples and nuts, preparation of wooden boxes for
mango packaging, marketing and transportation, cashew
processing etc. Cashew processing units not only help in
employment generation in this region but also, help in dispersal of
units in the rural areas to prevent the migration of rural masses to
urban areas. There are nine cashew processing factories and 78
household level cashew processing units in this region. Cashewnut
from these districts fetches a substantial foreign exchange. Kokum
fruit are also collected in the season, processed and sold in the
form of kokum syrup and Amsul, kokum oil is also extracted from
seeds. This has good demand in cosmetics industry. Paddy straw is
useful for manufacturing paper and paperboard, there are some
units operating in the region.

3.15 Livestock

Livestock makes substantial contribution to the economy by

providing subsidiary occupation and income to the rural
population, food to human population and employment to small
farmers and landless labour.

The livestock population in South Konkan region as per

livestock census 2012-13 is given in table 3.4. It is seen from table
3.4 that total cattle population in South Konkan region was
2224115 lakh heads of which 45.33 per cent was bovine
population, cattle and buffalo population was 36.37 per cent and
6.69 per cent respectively of the total livestock population.
Table 3.4 : Livestock population of South Konkan region.

(Figures in number)

Sr.
Category of livestock Ratnagiri Sindhudurg Per cent
No.

1 Cattle 580552 228271 808823

(36.37)

2 Buffalo 43862 104826 148688

(6.69)

3 Total Bovine 675072 333097 1008169

(45.33)

4 Sheep 47 214 261

(0.01)

5 Goat 60381 36291 96672

(4.35)

6 Poultry 69100 46932 116032

(5.21)

7 Other livestock 42722 2748 45470

(2.04)

Total livestock 1471736 752379 2224115

(100.00)

(Figures in parenthesis indicate percentage to total reported area.)

Source : Socio- Economic Review and District Statistical Abstract of Ratnagiri
and Sindhudurg Districts 2012-13

The conditions in the zone are ideally suited for grassland

development and cattle production. As per the report of nutrition
expert‟s per capita consumption of milk meagre in the zone, this
needs boosting. The increase in the milk production can be
achieved through increase in number of productive animals,
growing of grasses on waste lands, setting up of veterinary aid
centres and encouragement to manufacture concentrated feeds.
The unproductive animals and menaces as stray cattle for which
Grampanchayat act needs to be enforced vigorously.

3.16 Transport and communication.

The only National Highway (NH-17), Mumbai to Goa, runs

from north to south is the major source of road transport. All the
tahsil places and big villages in the region are well connected to
this highway to facilitate smooth transport service. The total road
length of region is 10541 km., of which length of National Highway
is 385 km. The region is having only one railway tract (Konkan
Railway) running from north to south with total length of 297.47
km. with this transport facility, the region is now well connected
with southern and northern part of the country. At present,
transporting of agricultural goods, truck/tempo services are being
used because of their easy access. The rail transport is presently
used only for journey purpose. However, in coming future, the
Konkan railway will definitely provide better transport facility for
transportation of valuable agricultural commodities of this region
in distant market of the country.

For better and early transmission of messages, the region is

having 654 post offices and 52221 telephone connections in
Ratnagiri district and 371 post offices and 24326 telephone
connections in Sindhudurg district. Recently the mobile facility is
made available at many places to facilitate quick communication.

3.17 Marketing of Agricultural Produce

There are number of Co-operative Societies functioning in

this region which cater the needs of market. However, long
distance from major market like Mumbai, Pune and other big
cities, hilly undulating terrain hamper the transportation of goods
produced in the region. Inadequate transport facilities and lack of
ready market are major bottlenecks in the production of certain
commodities. Most of the mangoes sent to Mumbai market and
some quantities are marketed in Pune, Nagpur, Kolhapur and
other cities in the state. Sometimes, mangoes are also sent to
Ahmedabad, Indore, Rajkot, New Delhi, but the quantity is very
meagre.

There is no surplus food grain production in the region and

hence, marketing of food grain is not developed. Area under
groundnut is increasing where the irrigation facilities are available
and hence, few oil mills/ ghanis are in operation.

3.18 Co-operative and Banking sector

Co-operative and Banking sector covers various aspects of

agricultural needs, such as extension of agricultural credit and
supply of agricultural inputs through co-operative societies. Upto
the end of March 2010, there were 2394 co-operative societies
(1565 in Ratnagiri + 829 in Sindhudurg), of which, 607 (25.36%)
were Primary Agricultural Co-operative Societies. In addition to
this various commercial, schedule and co-operative bank branches
were in operation in this region and the total number of the bank
branches was 298. As compared to Maharashtra, the percentage
share of PACS‟s in region was only 1.50 and the proportionate
credit disbursement was only 0.80 per cent (up to 2009-2010).
This showed that co-operative and banking sector is not well
developed in study area as compared to rest of Maharashtra.

Source : Socio-Economic Review and District Statistical Abstract of

Ratnagiri and Sindhudurg district (2012-2013).
 APPENDIX-II

College of Agriculture Dapoli, District- Ratnagiri (M.S.)

Department of Agriculture Economics

Title – Economics of broiler poultry production in South Konkan region.

Name of Investigator - Mr. Patil N.P. Reg. No. - 2305

Name of Research guide- Dr. Malave D.B. Ref. year- 2014-15

SCHEDULE FOR DATA COLLECTION

General Information about broiler poultry owner

1. Name of the farm – .

2. Name of the poultry owner – .
3. Age - . Year .
4. Education- .
5. Occupation a) Main - . b) Subsidary - .
6. Year of establishment of broiler poultry farm – .
7. Location of broiler poultry farm –
Village - . Taluka - . District – .
8. Type of ownership – Individual / co-operative / joint partnership
9. poultry training course attended (Yes / No)
If yes, i) year of training – .
ii) Name of institution – .
iii) Duration of training - . Days
10. Nearest market –
Village - . Taluka - . District – .
11. No. of batches annually – .
12. Total No. of birds raised annually – .
13. Information about family members

Age groups (years) Male Female Total

Up to 14
15 and above
Working on farm
14. Operational Land holdings (ha)
Sr.No. Type of land Area (ha) Land Revenue (Rs) Total
1. Cultivated
a) Unirrigated
b) Irrigated
Sub Total
2. Uncultivated
3. Permanent fallow
4. Current fallow
5. Grazing land
Grand Total

15. Cropping pattern

Sr. Season / Crop Variety Area (ha)
No.
1. Kharif
a)
b)
c)
d)

2. Rabi/Summer
a)
b)
c)
d)
3. Perennial
a)
b)
c)
d)

16. Inventory of buildings and other farm structure –

Sr. Particulars Year of Cost (Rs) Present Repairing
No. construction value (Rs) charges
1. Residential
building
2. Farm house
3. Godown
4. Cattle shed
 5. Other buildings

17. Inventory of Implements, Machinery and hand tools –

Sr. Particulars No. Year of Purchase Repairing Present
No. purchase cost (Rs) cost (Rs) value (Rs)
1. Implements
i. Wooden plough
ii. Iron plough
iii. Hand hoe
iv. Any other
2. Machinery
i. Oil engine
ii. Electrical pump
iii. sprayer
iv. Any other
3. Tools
i. Koyati
ii. sickle
iii. Axe
iv. Pick Axe
v. Kudale
vi. Spead
4. Other
i. Bullock cart
ii. Bicycle
iii. Motorcycle
iv. Others

18. Information about livestock

Sr. Type of animal Breed type Age (years) Total no. Purchased
No. cost (Rs)
1. Draft
a) Bullocks
b) He-Buffaloes
2. Cow
a)In milk
b)Dry
3. Buffalo
a)In milk
b)Dry
4. Young stock
(below 3 years)
a) Cow
b) Buffalo
5. Goat
 6. Sheep
7. Poultry birds
8. Others

19. Infrastructure for broiler poultry farm –

A) Land –
i) Land used for poultry broiler farm- . sq.m.
ii) Year of land purchased -
iii) Purchase value -
iv) Present value –

B) Buildings -
Sr. Type of house Area Year of Cost of Expected Repairing
No. constru construction life (years) cost (Rs)
ction
1. Broiler
a) Brooder
House
b) Broiler
house
2. Store house

3. Others

C) Equipment and Machinery used for broiler poultry production –

Sr. Type of No. Year of Expected Cost of Present Repair

No. Equipment and purchase life purchase value cost
Machinery (years) (Rs.) (Rs.) (Rs.)
1. Feeders
a) Brooder feeder
b) Grower feeder
c) Broiler feeder
2. For water
a) Brooder
b) Grower
c) Broiler
3. Litter stirring
Handle / phavada
4. Weighing balance
a) for feed
b) for bird
6. Vaccination
 equipment
7. Other

D) Fencing to Broiler poultry farm –

1) If there any fencing to your poultry farm – Yes / No
If yes, i) what type fencing (permanent / temporary)
ii) Year of fencing –
iii) Cost of fencing –

E) Birds –
1) Source and place of purchase of broiler poultry birds -
2) Date of starting barch (broiler) –
3) No.of chicks of broiler at the time of starting batch-
4) Cost of chicks of broiler at the time of starting batch-
5) other costs (Rs.) –
i) Cost of transportation –
ii) Handling charges –
iii) Loading charges –

F) Other working expenses –

1) Annual electricity charges – Rs.
2) Annual expenses on sanitation – Rs.
3) Litter purchase –

Sr. Type of Litter Quantity Value (Rs.)

No.
1. Rice husk - Kg/bags
- No.of bags
2. Saw dust - Kg/bags
- No.of bags
3. Any other

G) Mortality –
1) Total no. of birds at the time of starting of batch –
2) mortality during transportation / handling –
3) Mortality in broilers –
i) Broiler chick stage (no.) –
ii) Broiler stage (after 5 week no.) –
20. Feed for broiler –

Sr.No. Weeks No.of Name of Qty. consumed Value

Chicks. feed/conc. (Kg) (Rs.)
1.
2.
3.
4.
5.

21. Operation wise Labour used –

Sr. Operations No. of Wages Rate Hired labour Family labour
No. Birds M F M F M F
1. Cleaning and
sanitation of farm
2. Feeding mixture
3. Supervision of
farm
4. Cleaning and
sanitation of bird
5. Watch and ward
of farm
6. Other

22. Annual requirement of physical input in broiler poultry production –

Sr. Particulars Unit Qty. Rate/Unit Total
No. (Rs) amount (Rs.)
1. Feeding Kg.
materials
A)Broiler feed
1)
2)
B) Others.
1)
2)
2. Veterinary Rs.
Expenditure
3. Others
23. Income from broiler poultry production -

Sr. Perticulars Home Consumption Sold Total

No. No. Total Valu No. Total Valu No. Total Value
of live e of live e of live (Rs.)
Bird weight (Rs.) Bird weigh (Rs.) Birds weight
s (Kg.) s t (Kg.) (Kg.)
1. Broilers
a)Broiler
chicks
b)Mannur
e
c)Gunny
bags(No.)
2. Others.

24. Disposal of broiler poultry birds –

Sr. Agencies Quantity Sold

No. No. of Birds Live weight (Kg.) Value (Rs.)
1. Local sale to consumer
(Family/Hotels)
2. Sale in nearest town to
consumer.
3. Sale to local trader.
4. Sale to Wholesaler in
big market
5. Any other

25. Constraints faced by broiler poultry farmer –

a) Production Constraints
i)
ii)
iii)
iv)
b) Disposal Constraints
i)
ii)
iii)
iv)
 APPENDIX-I

Respondants selected for the study

Study area: South Konkan region

Sr. Name of the respondants Sr. Name of the respondants

No. No.

1 Mr.Baburao Vitthal Gangan 31 Mr. Santan Francis Desilva

2 Mr.Gulabrao Maruti Surve 32 Mr.Santaji Ganpat Patkar

3 Mr.Deepak Vitthal Shirke 33 Mr.Alex Francis Quadrus

4 Mr.Chetan Gyanu Sutar 34 Mr.Mahendra Dayaji Mhadgut

5 Mr,Ravindra Bhau Gaykar 35 Mr.Chetan Hari Sonsurkar

6 Mr. Shailesh Gyanu More 36 Mr.Charan Devendra Nikam

7 Mr.Janardan Raghoji 37 Mr.Lahu Ashok Sawant

Ramteke

8 Mr.Ganpat Gopal Narwankar 38 Mr.Somnath Babu Sonsurkar

9 Mr.Mahesh Appaji Padekar 39 Mr.Rajendra Sakharam

Neman

10 Mr.Harish Namdev Parte 40 Mrs.Amruta Sachin Manjrekar

11 Mr. Bala Ratnu Dhagade 41 Mr.Vijay Ramesh Samant

12 Mr.Vitthal Gunaji 42 Mr.Abhimanyu Deu Mhadgut

Sawardekar

13 Mr.Sadashiv Appaji Kelkar 43 Mr.Shyam Aba Sonsurkar

14 Mr.Vishnu Rajendra Karande 44 Mr.John Moran Desilva

15 Mr.Anwar S.Sheikh 45 Mr.Shrikant Arun Majgavkar

16 Mr.Anand Deu Shirwankar 46 Mr.Santosh Ganesh Urankar

17 Mr.Yashwant Hari Sankpal 47 Mr. Ashish Vishnu Mhadgut

18 Mr.Pramod Atmaram 48 Mrs.Sejal Sunil Dhuri

Sankpal

19 Mr.Devji Ramu Bhoye 49 Mr.Umesh Hari Mhadgut

20 Mr.Mangesh Naru Sankpal 50 Mr.Shrikrishna Rama Bhitiye

21 Mr.Chandu Shivaji Sankpal 51 Mr.Sopan Sadashiv Nandoskar

22 Mr.Yashvant Bhargav Kane 52 Mr.Kiran Vasudeo palaskar

23 Mr.Pradip Shahaji Nikam 53 Mr.Shrikant Dhanaji Samant

24 Mr.Keshav Shiva More 54 Mr.Sudhir Ravindra Gawade

25 Mr.Suraj Babu Dhopavkar 55 Mr.Digambar Sundar Rane

26 Mrs.Pooja Shekhar Nikam 56 Mr.Milind Rajaram Sawant

27 Mr.Bala Dagdu Sankpal 57 Mrs.Suman Harish Ludbe

28 Mr.Vijay Shamlal Gourat 58 Mr.Sanjay Bhau Sawant

29 Mr.Bhau Vishnu Wagvekar 59 Mr.Prabhakar Hari Gotuskar

30 Mr.Praveen Rajendra 60 Mr.Sachin Keshav Mhadgut

Nersekar
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Anonymous (2001). Focus on poultry industry in India.The Times

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Anonymous (2013). USDA report on broiler poultry production.

Anonymous (2014). India`s poultry sector. FAO Agril.Outlook. 4:5-6

Anwar, M.Z., Abdul Hayee Qureshi and Muhammad Irfan Anwar

(2007). Marketing Issues Affecting Broiler Production in
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Barrier Kalla G.,Haruna,U.M.;Abubakar,B.M.;Hamidu and

Murtala,N. (2003). Economic analysis of broiler
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Association of Nigria Conference, Ayetoro, Nigeria.

Bhandari. D. B. (2001).Economic analysis of poultry farming in

Ratnagiri district. Unpublished M.Sc. (Agri) thesis
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Etuk,E.K.,Agom,D.I., Isika,M.A.,Idiong, I.C.(2007).Resource use

efficiency of broiler enterprises in Cross River State,
South Eastern Nigeria. International Journal of poultry
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Ganeshkumar, B. and Rai, R.B. (2006).Economics status of poultry
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Jitender, B., Pandey, U.K. and Suhag, K.S.(2005).Small ruminant‟s

economy of semi-arid region in Haryana. Indian journal
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Joshi, V.G. (1989). Economics of poultry production in Ratnagiri

district (M.S) Unpublished M.Sc. (Agri.) thesis
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Kalamkar, S.S. and Atkare A.G.(2014) Vertical integration and

contracting in the Indian poultry sector: A study of
broiler farming in Maharashtra. Ind. Jour. Agril. Mktg.,
(Conf.Spl.), 28(3), 2014.

Kumar, R., Suhag, L.S. and Kharub, R.K. (1995). Economics of

Broiler farms in Jaid district. Poultry Guide. 32 (3-4):
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Langade, V.G.(2009). Economic analysis of Emu farming in

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MAU, Parbhani (M.S). 1-68.

Mahadik, S.D.(1997).Economics of poultry farming in Raigad

district. Unpublished M.Sc. (Agri) thesis submitted to
Dr.B.S. K.K.V., Dapoli. (Maharashtra state)

Mane, V.S. (1999).Constraint analysis of poultry farming in Raigad

district of Maharashtra state, Unpublished M.Sc. (Agri)
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(Maharashtra state).

Mbanasor, J.A. (2002). Resource use patterns among poultry

enterprises in Abia state. Nig.J.Anim.Prod. 29 (I) 64-70.
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Nargis F.S., Billah, M.E., Hussain, M.A.R., Howlidar, S.H.Lee

(2013). Family poultry production and consumption
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Navratan, A.S. (2014). Personal communication report.

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Dr.B.S.K.K.V.,Dapoli.(Maharashtra state).

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 CHAPTER IV

METHODOLOGY

The present chapter devoted to explain the methodology

adopted to fulfill the objectives under study. The research
procedure adopted to examine the study aspects of the poultry
enterprise has been explained in relation to following points;

4.1. Sampling design

4.2. Methods of data collection
4.3. Analytical techniques
4.4. Cost concept used in analysis
4.5. Functional analysis

4.1. Sampling design

4.1.1 Selection of study area

For present study two stage sampling method was followed

with selection of region (study area) as primary unit and broiler
farming unit as an ultimate unit.

4.1.2 Selection of region

Konkan region comprises North Konkan and South Konkan

region. North Konkan region consisting of Thane and Raigad
districts, while South Konkan region consisting of Ratnagiri and
Sindhudurg districts. The broiler farming is comparatively
increasing in South Konkan region. As per primary information
collected from District Animal Husbandry Sub-Commissioner
Officer, South Konkan region have comparatively the more number
of broiler unit. Therefore South Konkan region was purposively
selected for study.
4.1.3 Selection of broiler poultry units

With the reference of information collected about broiler

farming units found that Ratnagiri and Sindhudurg district had
increasing numbers of broiler poultry units in the recent years.

4.1.4 Selection of sample

The list of broiler poultry units from Ratnagiri and

Sindhudurg district was obtained from concerning authority. Three
tahsils namely, Dapoli, Khed and Chiplun from Ratnagiri district
and Kudal, Vengurle and Sawantwadi from Sindhudurg district
respectively having maximum broiler poultry units were selected
purposively. From each tahsil, ten broiler units were selected
randomly. The total sample consisted of 60 broiler poultry units
which were analyzed to obtained appropriate results.

4.2. Method of data collection

The data were collected by survey method with the help of

specially designed schedule (Appendix II). The data were collected
by personal interview with the selected broiler poultry owners. The
required information collected from broiler farmers was obtained in
the month of January 2015.

4.2.1 General information about broiler poultry owner

Information collected from broiler owner regarding age,

education, occupation, land holding, cropping pattern, source of
irrigation, inventory of farm assets, expenditure incurred on broiler
farm, cost involved in broiler farming and receipts and farmers
view regarding constraints and suggestions was noticed.

4.2.2 Physical input output data:

The detailed information on the physical quantities of inputs

namely, human labour (Family and hired), feeding mixture,
veterinary aids, electricity unit used, were collected and their cost
and returns along with disposal pattern were also obtained.

4.2.3 Reference period

The information and data for the present study was obtained
in the month of January 2015 for the during agriculture year
2013-14 from the selected broiler poultry owners.

4.3. Analysis of data

4.3.1. Classification of sample broiler units

The selected sample broiler poultry units were classified into

different size group. As per number of broiler poultry birds per
batch to study the effect of size of broiler poultry birds. The broiler
growers were classified into three categories Viz.-I)Small broiler
units upto 750 birds per batch II)Medium broiler units from 750 to
1628 birds per batch and III)Large broiler poultry units 1628 birds
and above per batch.

The stratification was carried out with the help of mean and
standard deviation as follows.

1. Total number of birds per year –29058.7

2. Mean value – 1188.33
3. Standard deviation – 878.57

Sl. Number of Number

Groups Category
No. birds of units

1 Small M.D - ½ S.D < 749 24

M.D - ½ S.D to M.D + ½

2 Medium 750 to 1628 26
S.D

3 Large M.D + ½ S.D and above >1629 10

Total - - 60
4.3.2. Analytical technique

For the purpose of achieving specific objective of the study

the collected data were analyzed to draw the conclusion. The data
were arranged in suitable table and cross tables. Simple statistical
tools such as Arithmetic mean, average, percentage and ratios were
used for analysis.

4.4. Analytical techniques

4.4.1. Terms and concepts used

Standard cost concepts used in farm management studies

were used for work out total cost of broiler farming units.

A) Variable costs

1) Cost of feeds

The feed cost was worked out by taking into consideration of

the quantity of different ingredients feed to the birds and their
respective prices. The transportation charges of bringing feed from
market to farm was considered.

2) Cost of chicks

Broiler sample farms selected for the present study were

purchasing the one day old chicks from Venkateshwara
Hatcheries, Pune, Balkrishna Hatcheries, Miraj, Mandavi
Hatcheries, Mandavi branch. The cost of chicks was recorded. The
farmers got on the farm delivery of chicks, so there was not
transportation cost. Variations in the prices of chicks were
observed due to different hatcheries and location of broiler poultry
farm from supplying agency.

3) Cost of labour

The labour engaged for conducting different operations in

poultry farms likes transportation of feeds, after care of broiler
birds, cleaning, watering and miscellaneous works were
considered. Human labour was measured in man days. Labour
cost was imputed by considering actual wages paid to them.

4) Veterinary expenditure

The actual cost of medicines and veterinary aids paid on

flocks of broilers in completed production cycle was considered.

5) Interest on working capital

The prevailing rate of interest per annum on long term (or

rate on interest at which investment is done by owner) was
considered on working capital which was 12 per cent per annum.

6) Miscellaneous charges

Actual expenditure incurred towards the electricity charges,

liter purchase, sanitations and minor repairing was considered
under miscellaneous cost for one production cycle of broiler farms.

B) Fixed costs
1) Depreciation
Depreciation is the reduction in the value of equipment‟s or
assets as time progresses. Depreciation on buildings, fencing, shed
facilities as well as on equipment‟s and appliances was worked out,
at the rate of 10 per cent per annum to total value

2) Interest on Fixed capital

Interest on Fixed capital was worked out at the rate of 10 per

cent per annum to the total value.

4.4.2. Cost and returns per farm and per bird

Considering the average size of farm (number of birds) per

farm and corresponding fixed and variable cost and gross returns,
total cost of production per bird were calculated for each category
of broiler birds.
4.4.3. Efficiency measures
i) Feed conversion ratio
Feed conversion ratio is an index of efficiency expressed in
terms of kilogram of feed consumed live weight per bird.

Feed consumed per bird in kg

Feed conversion ratio =

Live weight per bird (kg.)

ii) Live weight feed price ratio

Live weight feed price ratio is the ratio between the value of
live weight produce per bird to the value of fee consumed per bird.

Value of live weight produced per

bird

Live weight feed price ratio=

Value of feed consumed per bird

iii)) Benefit cost ratio

Revenue cost ratio is the ratio between gross returns to

the total cost of input used. It is also called as output-input ratio.

Gross returns

Benefit cost ratio =

Total cost of input

4.4.4. Break-even analysis

The break-even analysis is a traditional analytical technique

for knowing the point of output of which business costs (fixed +
variable) are covered by the value of output or gross income. The
break-even technique was used in the present study to know the
minimum kg of live weight produce by the broiler farmer to cover
come the total cost of production. The break-even point for broiler
farm was calculated by following formula:

Fc

Q=

P – Vc

Where,

Q = Break-even output.

Fc = Annual fixed cost,

P = price per unit of output,

Vc = Variable cost per unit net of by produce value.

4.4.5. Margin of safety

Margin of safety is the percentage ratio of break-even output

to the total volume of output.

Break even output

Margin of safety = x 100

Total volume of output

4.5. Functional analysis

The following form of production function was used to
study resource use efficiency.

Y= bo Xibi eu

Where,
 Y = production/kg.

bo= Intercept term or Constant

Xi = Explanatory/ Independent variables

bi = Regression coefficient of respective variables

eu=Error term

X1 = Human labour in days.

X2 = No. of one day old chicks.

X3 = Feed in kg.

X4 = Veterinary aids (Litre)

Returns to scale: (∑bi)

It is the summation of all production elasticity
coefficients of the explanatory variables.

Estimation of MPP and MVP

The MPP of different input was estimated by taking 1 st order

partial derivative of output (Y) with respect to concerned input
appearing in production function.

Y= b0xibi

dy/dxi =b0 b1xibi-1

where,

Xi = input

bi = coefficient of ith variable

MPP of xi is
Y

Dy/dxi = bi

Xi

1. Marginal physical product (MPP)

Y

MPPx i = bi

Xi

Where,

Dy/ dxi=MPP of Xi input

bi = Production elasticities of ith input

Y = Geometric mean of output

Xi = Geometric mean of ith input

2. Marginal value product (MVP)

MVPxi= MPPxi x Price per unit of output

3. Marginal factor cost (MFC)

MFC= Price per unit of the input
Fig.2. A. Per farm fixed capital investment in broiler
poultry units

Small group (%)

59.11

15.18
6.15 4.62 6.42 5.97
2.34 0.21

Rs. 55444

Medium group (%)

63

14.74

4.47 6.07 6.23

3.43 1.88 0.18

Rs. 100522
Fig.2. B. Per farm fixed capital investment in broiler
poultry units

Large group (%)

58.88

16.4

4.97 6.03 6.88 5.65

1.06 0.13

Rs. 211524

Overall (%)

60.71

15.41

5.02 4.61 6.43 5.96

1.7 0.16

Rs. 100991
 Fig.3.A. Per bird cost of broiler production
Small group (%)

Wages of labour
0.52 0.6 Price of one day old chicks
0.69
10.55 0.86 4.71 14.15 Cost of feed
0.28
0.48
Cost of Litter material

67.16 Electricity and water charges

Medical expenses
Miscellaneous charges
Interest on working capital
Depreciation charges
interest on fixed capital
Rs. 144

Medium group (%)

0.75 Wages of labour

0.57 0.66 0.95 Price of one day old chicks

10.54 0.65 3.72 15.47 Cost of feed
0.28
Cost of Litter material
66.41 Electricity and water charges

Medical expenses

Miscellaneous charges

Interest on working capital

Depreciation charges
Rs. 132 interest on fixed capital
 Fig.3.B. Per bird cost of broiler production
Large group (%)

0.83 Wages of labour

0.65 1.03
0.37 Price of one day old chicks
10.53 0.71 2.35 16.95
0.26 Cost of feed
Cost of Litter material
66.32 Electricity and water charges
Medical expenses
Miscellaneous charges
Interest on working capital
Depreciation charges
Rs. 121 interest on fixed capital

Overall (%)

0.75 Wages of labour

0.62 0.96
0.48 Price of one day old chicks
10.54 0.65 3.49 16.29
0.27 Cost of feed
Cost of Litter material
65.95 Electricity and water charges
Medical expenses
Miscellaneous charges
Interest on working capital
Depreciation charges

Rs. 132 interest on fixed capital

 Fig.4.A. Per farm returns in broiler production

Small group (%)

97.93

1.93 0.14

Sale of broiler Manure (kg.) Sale of empty

(kg.) gunny bags (Nos.)
Rs. 706012

Medium group (%)

97.52

2.29 0.19

Sale of broiler Manure (kg.) Sale of empty

(kg.) gunny bags (Nos.)
Rs. 1241222
 Fig.4.B. Per farm returns in broiler production

Large group (%)

97.19

2.59 0.22

Sale of broiler Manure (kg.) Sale of empty

(kg.) gunny bags (Nos.)
Rs. 2515195

Overall (%)

97.50

2.31 0.19

Sale of broiler Manure (kg.) Sale of empty

(kg.) gunny bags (Nos.)

Rs. 1237076
 CONTENTS

CHAPTER PARTICULARS PAGE

NO. NO.

I INTRODUCTION 1-9

II REVIEW OF LITERATURE 10-22

SOCIO-ECONOMIC
III BACKGROUND OF SOUTH
KONKAN REGION 23-34

IV METHODOLOGY 35-42

V RESULTS AND DISCUSSION 43-74

VI SUMMARY AND CONCLUSIONS 75-87

LITERATURE CITED i-iv

APPENDICES I-VIII
 LIST OF TABLES
TABLE PARTICULARS PAGE
NO. NO.
3.1 Land utilization in South Konkan region 27

3.2 Cropping pattern in South Konkan region 29

3.3 Irrigated area in South Konkan region 30

3.4 Livestock population in South Konkan region 32

4.3 Classification of sample broiler units 37
5.1 Composition of sample broiler poultry owners 43
5.2 General information of broiler poultry owners 44
5.3 Size of land holding 48
5.4 Cropping pattern 49
5.5 Size groupwise per farm investment on capital
51
assets
5.6 Size groupwise information of broiler poultry units 52
5.7 Size groupwise per farm fixed capital investment
54
in broiler poultry units
5.8 Per farm physical inputs used in broiler
55
production
5.9 Per farm cost of broiler poultry production 57
5.10 Per bird cost of broiler poultry production 59
5.11 Per kg. cost of broiler poultry production 61
5.12 Production from different size groups of broiler
62
units
5.13 Gross returns from different size groups of broiler
63
units
5.14 Profitability in broiler poultry production 66
 5.15 Cost of production per kg. of live weight of broiler 67
5.16 Feed conversion ratio in broiler poultry production 68
5.17 Live weight-feed price ratio in different size groups
68
of broiler poultry units
5.18 Break even output in broiler poultry production 69
5.19 a. Production coefficients for C.D. type production
70
function in broiler production
b. Resource use efficiency in broiler poultry
71
production
5.20 Disposal pattern of broiler poultry production 72
5.21 Problems faced by the poultry owners 73

LIST OF FIGURES

FIG. PARTICULARS BETWEEN

NO. PAGES

1 Map of study area : South Konkan region 35-36

Per farm fixed capital investment in broiler 53-54

2.A
poultry units
Per farm fixed capital investment in broiler 53-54
2.B
poultry units

3.A Per bird cost of broiler production 58-59

3.B Per bird cost of broiler production 58-59

Per farm returns in broiler poultry 63-64

4.A
production
Per farm returns in broiler poultry 63-64
4.B
production
 LIST OF PLATES

Plate. Caption After

No. Page

1. Researcher interviewing the respondent 52

2. Day old chicks at the time of brooding stage 52

3. Broiler poultry birds at 18-20 days old 55

4. Broiler poultry birds at the marketing stage 55

Litter starring operation in broiler poultry 57
5. farming

Vaccination in broiler poultry birds at chick 57

6. stage
 CHAPTER I

INTRODUCTION

Due to unexpected climatic and environmental changes

Indian Agriculture has not been consistent with production
pattern. Quality and quantity maintenance in the Agricultural
produce also not consistent so under such condition there is need
to have allied business related to agriculture which able to give
continuous and frequent income to farmer. Now a days, subsidiary
businesses are choosen by most of the Indian farmers. But in the
view of the cost and return, profit may be less or null. Hence, to
overcome that problem the alternative solution may be definitely
accomplished by Broiler poultry farming, a newly emerging
subsidiary business in Indian agriculture.

It was considered as a backyard venture in the early 1960`s

has now been transformed into a strong agro-based farming
activity. Poultry is one of the fastest growing segments of the agro-
based sector in most of the agro-based industries today. Poultry
production is playing an important role in Indian economy. It has
become a vital component of the farm economy, as it provides
additional income to weaker sections. Besides this, non-perishable
nature of poultry products has boosted the growth of the poultry
industries in rural areas. Poultry can give the needed momentum
and aspirations to the large majority of people for a better quality
of life, with proper management of finance and human resource.
Success of poultry business depends on the high production and
low mortality. The mortality is one of the major hindrances in the
development of entrepreneurship in poultry business. The poultry
sector is one of the rare examples of the social and economic
development, which has attained its present status without much
help from international agencies or investment from the
government plans compared to crop sector. The poultry sector
therefore deserves more attention from all private and government
agencies involved in planning poultry development. Compared with
the rest of livestock sector, the poultry industry in India is better
organized, vibrant and is progressing towards modernization.

Importance

Chickens are fast growing birds. In the past, it took about 4

months to produce a two kilogram Chicken. However, today a two-
kilogram chicken can be produced in 42 days. Due to this fact, a
better understanding of husbandry practices, and use of new
technologies, poultry farms can be profitable enterprises. Each
operation in the poultry business has become a huge business by
itself. Some farms are specialized in producing eggs for market
consumption, or for hatching chicks for the purpose of meat
production. Many large farms are specialized in raising broilers for
meat production. Other businesses are focused on feed preparation
or on using the wastes of poultry farms for compost production
and fertilizing farmlands. If managed and marketed well, all
segments of the poultry business can be profitable.

As the human population increases, the poultry industry

continues to grow to meet the demand for poultry products in
world market. The importance of poultry farms lies in the quality of
products that are provided to humans. Broiler farms provide meat
that supplies the human body with high quality proteins. Layer
farms provide eggs rich in proteins and vitamins, especially the fat
soluble vitamins (A, D, E, and K). Poultry farms are fast-paced
operations that can fulfill the demand for meat and eggs, and can
be expanded easily to meet the ever-growing demand (Dr.Navratan,
personal communication, 2014).
 Poultry meat is an important source of high quality
proteins, minerals and vitamins to balance the human diet.
Specially developed breeds of chicken meat (broiler) that has ability
of quick growth and high feed conversion efficiency are now
available. Depending on the farm size, broiler farming can be the
main source of family income or can provide subsidiary income
and gainful employment to farmers throughout the year. Poultry
manure has high fertilizer value and can be used for increasing the
yield of many crops. Broilers are marketed at an age of around 42
days. These are chickens reared for meat production. Broiler
production is a short-term enterprise. Therefore, a number of
batches can be raised within a year, or it could be a part-time job.
A number of strains exist in various regions of the country for
broiler production, which have a genetic potential to achieve 2.0 kg
live weight at the age of 42 days.
Poultry sector: World

In world, with 2.2 per cent increase per annum in poultry,

broiler meat production is 84640 thousand metric tons in the year
2013 as compared to 82800 thousand metric tons in 2012. (USDA
report 2013). Highest meat producing country in world is United
State followed by Brazil, China, European Union and India. United
State ranks first in world with 17752 thousand metric tons
production. India ranks fifth largest producer of poultry broiler
meat in world with 3420 thousand metric tons production. The
domestic poultry meat consumption of world is 83017 thousand
metric tons in year 2012-13. In April-2013, the highest broiler
meat consuming country in world is China followed by Brazil,
European Union, Mexico, Russia, United States and India. In
overall, United State ranks first in world consumption of 17752
thousand metric tons. India ranks seventh largest consumer of
broiler meat in world with consumption of 4527 thousand metric
tons. Poultry meat is imported by different countries which are
having less poultry production. The major broiler poultry meat
importing country is Japan followed by Saudi Arabia, Iraq and
Mexico respectively. The Japan ranks first in broiler poultry meat
importing country in world with 860 thousand metric tons quantity
in the year 2012-13. The major broiler poultry meat exporting
country in world is Brazil followed by United State, European
Union, Thailand and China. The Brazil ranks first in broiler poultry
meat exporting in world with 3580 thousand metric tons quantity
in year 2012-13.

Poultry sector: India

Poultry is one of the fastest growing segment of the

agricultural sector in India today. It has been growing around 8.35
per cent annually over the last decade with broiler meat volumes
growing at 10 per cent, while table egg which is growing at 5-6 per
cent is mainly driven by increased domestic consumption. India
has emerged as the 3rd largest egg (66 billion eggs) and 5th largest
poultry meat (3.4 million tons) producer in the world in year
2012.In 2014, The broiler production is estimated to be 3.6 million
metric tons in 2014 (USDA, 2011 and 2013).It ranks after China in
highest meat production i.e. in 2013 it produced 1405 thousand
metric tons. Per capita egg consumption increasing from 28 egg in
year 2000 to 55 eggs during year 2012. Per capita consumption of
poultry meat increasing from 0.8 kg in 2000 to 2.2 kg annually
during year 2014 (FAO,Agril.Outlook). Total chicken population
has registered an annual growth of 7.3 per cent in the last decade.
Organized sector accounts for nearly 70 per cent of the total
poultry output in the country. The potential of poultry sector in
employment generation and enhancing rural incomes is well-
recognized.

Poultry industry is now become a major agro based industry

which accounts Rs. 49250 crores and gives 0.73 per cent growth to
the national economy and provides employment to over five million
people in the Country. Due to the healthy GDP growth, changing
food habits, rising purchasing power and increasing urbanization
have been strong drivers of growth. International trade in poultry
meat and table eggs accounts for about 10 per cent and 2.5 per
cent of their global annual output, respectively. India produces
close to 27 million chickens a week, of which 95 per cent is traded
alive. The poultry sector in India is transforming from a backyard
activity to large scale integrated poultry farming with wide spread
adoption of modern technology.

The production of poultry broiler meat in India is 3420

thousand metric tons with the compound growth rate of 12.14 per
cent for last decade (2003-2013). Andhra Pradesh has emerged as
the largest producer of poultry broiler meat followed by Tamil
Nadu, Maharashtra, Haryana and West-Bengal. In India, Andhra
Pradesh state ranks first with production of 824 thousand metric
tons in the year 2012-13. Maharashtra state ranks fourth largest
producer of broiler meat with production of 585 thousand metric
tons. The egg production of India is 630244 Lakh numbers in the
year 2010-11. Andhra Pradesh state ranks first with 201277 Lakh
numbers of eggs. Maharashtra state ranks third as largest egg
producer in India with 52245 Lakh numbers in the year 2011-12.

The export of meat and meat products, which recorded a

growth rate of 11.81 per cent during 1992-2001, in India, further
increased to 12.14 per cent during 2003-2013. So there is
potential for developing the broiler industry in the country and it
can be exploited to increase the employment and income in rural
areas.

Poultry sector: Konkan

The Konkan region falls under the heavy rainfall zone, divided
into four districts viz, Thane, Raigad, Ratnagiri and Sindhudurg,
which were cultivating mainly rice crop in kharif season. Moreover
about 68 per cent of land holdings in the region are below two
hectares which resulted into low per capita income. Due to these
facts dairy and poultry enterprises are emerging as a subsidiary
enterprise in Konkan region. The Ratnagiri and Sindhudurg
district having maximum poultry farms with maximum production
in Konkan region. Most of the poultry farms are concentrated near
cities and metros where there are well-organized markets. Today
75-80 per cent of eggs and poultry meat are consumed by just 25
per cent of the population in urban areas.

Importance of poultry from diet point of view

Eggs

Eggs have a high nutritional value. Both the egg-white and

yolk contain high quality protein (for both, this is at least 10 per
cent of their own weight). The egg-yolk has about 33 per cent fat.
Eggs also have a lot of vitamin A and D, and some vitamin B.

Chicken meat

There is a good market for the meat of local chicken breeds.

Chicken meat is a high quality and healthy food with an average
water content is 76 per cent, protein content of about 20 per cent,
relatively little fat about 7 per cent, it also contain calcium 12 (mg
%), phosphorus 201 (mg %), Iron (1.9 %) and Vitamin A 730 (IU)
especially under the skin.
Slaughter waste

Slaughter waste produced on farm is a very good feed

supplement if it is ground up and dried well. The waste must be
sterilized, or else there is a large chance of transmitting diseases. It
is also very important that carcasses of birds which die during the
production period are removed as quickly as possible.

Chicken manure

Chicken manure is very rich in nitrogen and other minerals,

especially phosphorus, calcium and potassium. The poultry
manure has;

1) In case of fresh manure: dry matter (20-22%), nitrogen (1-

1.5%), phosphorus (1-2), potassium (0.7%), calcium (2.2%) &

2) In case of litter manure: dry matter (50%), nitrogen (1-

2%), phosphorus (2%), potassium (1%), calcium (3%).

It is therefore a very good fertilizer. There are several other

uses for chicken manure it can be put into fish ponds as a feed for
fish, gas can be made from the manure, using a biogas digester.
The slurry which is then left over is still a very good fertilizer for
use on the farm.

Use in industry:

Almost all part of poultry having one or the other kind of use,
for example, fertile egg used for the vaccine preparation, non-edible
egg from hatchery can be used as animal feed and fertilizer.
Albumin used in many pharmaceutical preparations, paints,
varnishes and adhesives.

Need of the study

Poultry farming assumes special significance in Ratnagiri and

Sindhudurg districts of Konkan region due to increasing
industrialization, increasing population growth, changing food
habit, urbanization near to metropolitan city like Mumbai and in
Goa state; increased per capita income and awareness about
health care etc. are contributing towards rising demand of poultry
products. Also 68 per cent of land holdings in the region are below
two hectares which needs subsidiary enterprise like poultry, dairy
etc.to increase their income. Thus, the growth potential of this
sector is bright due to regular flow of income throughout the year.
Looking to the potential for developing the broiler poultry farm to
increases the employment and income in South Konkan region
present study entitled “Economics of broiler poultry production
in South Konkan region (M.S.)” was undertaken with following;
1.1 Specific objectives.

1) To study present use of resources in broiler production.

2) To work out costs, returns and profitability in broiler
production
3) To study resource use efficiency of broiler production.
4) To identify problems in broiler production and disposal.
1.2 Scope and utility of the study

As this study is based on cross sectional data, the scope is

limited to study area and specific objectives mentioned above. The
results obtained from the present study will be helpful to Broiler
farm owners to provide some guidelines regarding resource use
pattern, capital investment, cost and returns, resource use
efficiency, productivity and profitability of Broiler farms. The
findings of the study will also helpful to those who are willing to
undertake broiler poultry farming as a main occupation as well as
subsidiary enterprise. The financial feasibility analysis of broiler
poultry farms serve as guide to the financial institutions for
deciding scale of finance to broiler poultry enterprise.
1.3 Limitations of the study

The study in respect of commercial broiler farming is

conducted by selecting broiler poultry farms from South Konkan
region of Maharashtra state. The study is undertaken in the
Ratnagiri and Sindhudurg district and based on information
collected from limited number of broiler poultry owners. Therefore
the results of the present investigation cannot be generalized and
may be considered as indicative once in this region.
Fig.1 Map of study area : South Konkan region

LEGENDS

-Tahsil place
-Study area
-District headquarter

(Map not to the scale)

 CHAPTER V
RESULTS AND DISCUSSION

The data collected for the present investigation were analysed

as per the methodology, keeping in view the objectives of the study.
The results of the analysis are presented and discussed in this
chapter.

5.1. Composition of sample broiler poultry owners

To have detail information about total cost of production,

gross returns, benefit cost ratios and resource use efficiency of
broiler poultry birds by different categories, the selected broiler
poultry owners were classified into three different categories as
specified in the methodology. The composition of selected broiler
poultry owners is given in Table 5.1.

Table 5.1 Composition of sample broiler poultry owners

Sr. Size of broiler Range Number of units
No. poultry unit (No. of birds)
1 Small Up to 749 24 (40.00)
2 Medium 750 to 1628 26 (43.33)
3 Large 1629 and above 10 (16.67)
Total 60 (100.00)
(Figures in parentheses are percentages to total)

The composition of broiler poultry owners indicated that, out

of 60 broiler poultry owners in South Konkan region, 24 (40.00%)
belonged to small group, 26 (43.33%) belonged to medium group
and 10 (16.67%) belonged to large group on the basis of number of
birds reared per batch.

5.2 General information of broiler poultry owners

The general information regarding socio-professional

characteristics of broiler poultry owners with respect to age,
education, and experience in poultry, training and others is given
in Table 5.2

Table 5.2 General information of Broiler poultry owners

Sr.
Particulars Small Medium Large Overall
No.
1 No. of sample farmers 24 26 10 60
Average age of family
2 41.08 42.30 45.80 42.39
head (years.)
Average education of 8.87 11.60 9.84
3 10.07
family head
Occupation-a) Main- 75.00 61.53 60
4 66.66
poultry (%)
b) Subsidiary-poultry 40
5 20.86 38.46 31.46
(%)
Average experience 11.0
6 8.70 10.57 10.00
(years)
Training in poultry 60.00
7 62.50 42.31 53.33
management (%)
Average distance from
8 6.67 5.46 4.65 5.81
main road (km.)
Market for output-
9 90.00 94.00 96.00 92.73
beyond 10 km (%)*
Location of other broiler
10 33.33 26.92 20.00 28.33
farms < 1km (%)*
(* - Percentage to no. of sample farmers in the group)

5.2.1 Age
Age is the important factor influencing enterprising attitude
of farmers through various ways, ultimately affecting managerial
ability, skill and judgment required in the agri-business
management. It is observed from the Table 5.2 that, the average
age of sample broiler poultry owners for small, medium and large
groups was 41.08 years, 42.30 years and 45.80 years, respectively.
However, it was 42.39 years at the overall level.
5.2.2 Education

Education is another important factor influencing managerial

ability, skill and level of technical knowledge in the broiler poultry
business. The education status of poultry owners was evaluated by
giving zero point to illiterate farmers and one point for every
successive standard of education attained by him. The average
educational score of small, medium and large groups was 8.87,
10.07 and 11.60 respectively. However, it was 9.84 at overall level.
This indicated that, the educational status of almost all the broiler
poultry owners was good.

5.2.3 Occupation

The main and subsidiary occupations identified of the sample

broiler poultry owners were poultry, farming, business, and
service.

It is observed from table that, about three fourth 75 per cent

of poultry owners from small group followed by 61.53 per cent in
medium and 60.00 per cent from large group had broiler poultry
farming as main occupation. However at overall level it was 66.66
per cent.

Regarding subsidiary occupation, 40 per cent from large

group followed by 38.46 per cent in medium and 20.86 per cent
from small group of the poultry owners had poultry as subsidiary
occupation. However it was 31.46 per cent at overall level. This
indicate that majority of owners having broiler poultry farming as
main occupation and few owners having poultry farming as
subsidiary business where as remaining poultry owners were
having farming, business and services has main or subsidiary
occupation.
5.2.4 Experience in poultry rearing

The experience is another important factor which denotes the

how many years farmer was working in this business also given in
Table 5.2.

It is seen from Table that, at the overall level, the average

experience of poultry owners was 10 years, out of which 8.70 years
were of small, 11 years is of medium and 10.57 years of large units
owners in poultry farming respectively.

5.2.5 Poultry Training

Scientific training acquired by the poultry owners in respect

of rearing and management of the farms is a key element behind
the success of occupation. The information about poultry training
taken by poultry owners is presented in Table 5.2.

It is observed from table that, trained owners percentage in

small, medium and large units were 62.50, 42.31 and 60.00
respectively. In overall level it was 53.33 per cent. It is observed
that more than fifty per cent poultry owners had taken training in
poultry management.

5.2.6 Distance from main road

Distance from main road indicates efficacy in transport

facilities to broiler farms whether to transport birds for sale or to
bring inputs for broiler poultry farms. The average distance (km.)
from poultry unit is given in Table 5.2.

The table showed that the average distance from main road
for small poultry unit was 6.67 km. whereas it was 5.46 and 4.65
for medium and large size poultry units. However at overall level it
was 5.81 km.
5.2.7 Market for output beyond 10 km

It explains the percentage broiler farms which are beyond 10

km. from market where they will become sold. The percentage of
broiler farms beyond 10km. from market was 90.00 per cent, 94.00
per cent and 96.00 per cent for small, medium and large groups
respectively. However at overall level it was 92.73 per cent. It
revealed that most of the poultry owners sale these produces at
long distances market.

5.2.8 Location of other broiler farms < 1 km

It shows how many broiler farms are situated less than one
km. from other broiler farms. It indicates the success of broiler
poultry farming in that area. From Table 5.2, it is observed that,
for small units 33.33 per cent of poultry units where located more
than 1 km. from other broiler farms whereas 26.92 per cent units
from medium and 20.00 per cent from large broiler units were
located from one km. from other broiler farms. However at overall
level 28.33 per cent poultry farms had more than one km.
distances between two broiler poultry farms.

Table 5.3: Size of land holding

The size of land holding has a profound influence on different

economic aspect of farming business such as scale of production,
intensity of resource use and ultimately affecting level of
expenditure. The average size of land holding of different size
groups of broiler poultry owners is given in Table 5.3.

The size of total land holding includes cultivated and

uncultivated land. The average size of land holding was 1.46, 1.55
and 1.52 ha in small, medium and large groups respectively.
However at the overall level it was 1.50 ha.
 Table 5.3 also revealed that, the total cultivated land at
overall level was 1.32 ha. It was 1.34, 1.31 and 1.30 ha in small,
medium and large groups respectively. The proportion of
unirrigated area in the total land holding was more than the
irrigated area in all size groups.

Table 5.3: Size of land holding

(Area in ha)
Sr.
Particulars Small Medium Large Overall
No.
1 Cultivated land
0.52 0.56 0.60 0.55
a) Irrigated
(35.62) (36.12) (39.47) (36.67)
0.82 0.75 0.70 0.77
b) Un-irrigated
(56.16) (48.39) (46.05) (51.33)
1.34 1.31 1.30 1.32
Sub total
(91.78) (84.51) (85.52) (88.00)
Uncultivated 0.06 0.12 0.14 0.10
2
land (4.11) (7.74) (9.21) (6.67)
Permanent 0.04 0.07 0.05 0.05
3
fallow (2.74) (4.52) (3.29) (3.33)
0.02 0.05 0.03 0.03
4 Current fallow
(1.37) (3.23) (1.97) (2.00)
1.46 1.55 1.52 1.50
Total
(100.00) (100.00) (100.00) (100.00)
(Figures in parentheses are percentages to total)

At the overall level irrigated area was 0.55 ha (36.67%) and

unirrigated area was 0.77 ha (51.33%). The proportion of
uncultivated land was 6.67 per cent at the overall level to total
land holding. It is also revealed from the table that, the proportion
of permanent fallow land and current fallow land was 3.33 and
2.00 per cent respectively at the overall level to total land holding.

5.4. Cropping pattern

Cropping pattern is another important factor influencing in

the level of total annual expenses on the farm as well as returns
from the farm business. As the level of running expenses with the
crop diversification due to variation in quantities of inputs used.
The cropping pattern followed by broiler poultry owners is given in
Table 5.4.

Table 5.4: Cropping pattern followed by the broiler poultry

owners
(Area in ha)

Sr. Particulars Small Medium Large Overall

No.
1 Kharif
a) Paddy 0.73 0.75 0.82 0.75
(45.62) (43.85) (44.80) (44.64)
b) Nagli 0.23 0.25 0.20 0.23
(14.37) (14.62) (10.92) (13.69)
2 Rabi
a) Paddy 0.21 0.23 0.31 0.23
(13.12) (13.45) (16.94) (13.70)
b) Wal 0.01 0.02 0.02 0.02
(0.62) (1.17) (1.10) (1.19)
c) Vegetables 0.12 0.13 0.17 0.13
(7.5) (7.60) (9.29) (7.74)
3 Perennials
a) Mango 0.18 0.19 0.16 0.18
(11.25) (11.11) (8.74) (10.71)
b) Cashew 0.12 0.14 0.15 0.14
(7.5) (8.19) (8.19) (8.33)
4 Gross cropped 1.60 1.71 1.83 1.68
area (100.00) (100.00) (100.00) (100.00)
5 Net cultivated 1.26 1.33 1.33 1.30
area
6 Cropping 126.98 128.57 137.59 129.44
intensity (%)
(Figures in parentheses are percentages to gross cropped area)

It is observed from Table 5.4 that, at the overall level the

gross cropped area was 1.68 ha. Out of the gross cropped area at
the overall level, 58.33 per cent was under Kharif crops and 13.70
per cent was under Rabi paddy, whereas about 40.47 per cent of
area was under Kharif Nagli, Rabi vegetables and perennial Mango
and Cashew. Very less 1.19 per cent area was under Rabi Wal. It is
also observed from the Table 5.4, the paddy was dominant crop in
Kharif and Rabi season. Also the net cultivated area was highest in
larger (1.33 ha.) and medium (1.33 ha.) followed by small (1.26 ha.)
groups respectively. Whereas at the overall level the net cultivated
area was 1.30 ha. The cropping intensity was highest in larger
followed by medium and small groups; it was 137.59 per cent,
128.57 per cent and 126.98 per cent respectively. At the overall
level it was 129.44 per cent. Raut (2014) observed the similar
result for cropping

pattern in Raigad district.

5.5: Per farm investment on capital assets

The capital investment on broiler farms included investment

on land, building, livestock, implements and machinery and
others. Per farm investment on fixed capital assets are given in
Table 5.5.

The per farm investment on capital assets was highest

Rs.1204350 on large farms followed by Rs.1011043 on medium
farms and Rs.882615 on small farms respectively. However at the
overall it was 990890. At the overall level the highest investment
on land Rs.603600 followed by buildings Rs.284304, livestock
Rs.74276 and implements, machinery and equipments Rs.17255
respectively.

It was also observed from Table 5.5 that, per farm investment
on land in small, medium and large group was Rs.584000,
Rs.620000 and Rs.608000 respectively. Investment on buildings in
small, medium and large group was Rs.206614, Rs.287115 and
Rs.463908 respectively. Investment on livestock on small, medium
and large group was Rs.72833, Rs.74042 and Rs.78350
respectively. The investment on implements, machinery, hand tools
and equipments on small, medium and large groups; was
Rs.10816, Rs.17317 and Rs.32545 respectively.

Table 5.5: Size groupwise per farm investment on capital

assets
(Figures in
Rs.)
Sr.
Type of assets Small Medium Large Overall
No.
1 Land 584000 620000 608000 603600
(66.17) (61.32) (50.48) (60.90)
2 Buildings
a) Residential 120709 152745 215416 150376
(13.67) (15.11) (17.89) (15.16)
b) Storage room 21042 28653 42500 27916
(2.39) (2.84) (3.53) (2.81)
c) Cattle shed 17500 19615 23500 19417
(1.98) (1.94) (1.95) (1.95)
d) Broiler unit 47163 86102 182492 86592
(5.34) (8.52) (15.15) (8.72)
3 Livestock 72833 74042 78350 74276
(8.25) (7.32) (6.51) (7.48)
4 a) Implements, 3835 4794 5768 4573
Machinery and (0.44) (0.47) (0.48) (0.45)
hand tools
b) Equipments for 6981 12523 26777 12682
broiler unit (0.79) (1.24) (2.22) (1.28)
5 Others 8552 12568 21546 12458
(0.97) (1.24) (1.79) (1.25)
Total 882615 1011043 1204350 990890
(100.0) (100.0) (100.0) (100.0)
(Figures in parentheses are percentages to total)

It can be concluded that the investment on fixed assets in

different size groups was increased as the size of broiler farm
increased.
5.6. Information of selected broiler poultry units

The general information of sample broiler owners with respect

to number of broiler units selected, capacity of unit per batch,
mortality percentage, actual birds raised per batch and per bird
live weight is presented in Table 5.6.

From the Table 5.6, it is seen that, the average number of

broiler those could be reared per batch was 562, 1127 and 2850 in
case of small, medium and large groups respectively. However, the
actual size of broiler per batch was 548, 1098 and 2760 birds in
small, medium and large group respectively. At the overall level in
deep litter system, capacity of rearing per batch was 1188 birds
but actual birds reared were 1155.

Table 5.6: Size groupwise information of broiler poultry units

Sr. Particulars Small Medium Large Overall

No.
Number of selected
1 broiler poultry 24 26 10 60
units
Number of batches
2 8.0 7.27 6.13 7.37
sold per year
Total Number of
4384
3 birds raised per 7979 16920 8031
year
Per farm live weight
4 of broiler
8330.21 14760.94 29102.74 14578.94
production (kg)
Capacity of units
5 562 1127 2850 1188
per batch (birds)
6 Mortality (%) 2.57 2.61 3.15 2.68
Number of birds
7 14.46 29.41 89.77 33.49
Mortled per batch
Number of birds
8 548.04 1097.51 2760.23 1154.84
remain per batch
Average live weight
9 1.90 1.85 1.72 1.85
per bird (kg)

Considering mortality of birds per batch among the different

size groups it was highest in large (3.15%) followed by medium
(2.61%) and small (2.57%) groups respectively. However at the
overall level it was 2.68 per cent. It is revealed from the table that,
the mortality percentage was increased as the size of broiler
poultry farm increased.

Among the size groups average number of batches taken per

year was highest 8.00 in small followed by 7.27 in medium and
6.13 in large poultry units respectively. However at overall level it
was 7.37 batches per year. It indicated that the number of batches
taken per year decreased as the size of broiler farm increased.

The total number of birds reared per year per farm varies
from 4384 in small followed by 7979 in medium and 16920 in large
units respectively. The average live weight per bird varies from 1.72
kg to 1.90 kg per bird. However, at the overall level number of
birds reared per year per farm was 8031 per unit with average
weight of 1.85 kg per bird. Bhandari (2001) and Raut (2014)
observed the similar results studying poultry units in Ratnagiri
and Raigad district respectively.

5.7. Size groupwise per farm fixed capital investment in broiler

poultry units

Per farm fixed capital investment on broiler poultry farm

included investment on buildings, equipment and machinery and
other miscellaneous items are given in Table 5.7.

Per farm fixed capital investment on broiler farm in small,

medium and large groups, was Rs.55444, Rs.100522 and
Rs.211524 respectively. Whereas at overall level it was Rs.100991,
out of which major 85.75 per cent (Rs.86592) was invested on
buildings and remaining investment i.e.14.25 per cent (Rs.12682)
was on equipment and other on miscellaneous items (Rs.1718)
like buckets, weighing balance and water infrastructure etc.

The fixed capital investment per batch increased as size of

broiler farm increased; it was Rs.6931, Rs.13827 and Rs.34506 in
small, medium and large broiler poultry units respectively.
However at the overall level it was Rs.19515. Whereas the per bird
investment on fixed capital assets decreased as the size of broiler
farms increased, it was Rs. 12.64, Rs.12.60 and Rs.12.50 in small,
medium and large broiler poultry units respectively. However at the
overall level it was Rs.12.60.Mahadik (1997) observed the similar
result for investment pattern in Raigad district.

Table 5.7: Size groupwise per farm fixed capital investment in

broiler poultry units
(Figures in Rs.)
Sr.
Particulars Small Medium Large Overall
No.
1 Buildings
a Brooder house 8417 14808 34700 15567
(15.18) (14.73) (16.40) (15.41)
b Broiler house 32775 63338 124550 61315
(59.11) (63.00) (58.88) (60.71)
c Office cum 3408 4500 10500 5063
storage (6.14) (4.47) (4.96) (5.01)
d Servant 2563 3456 12742 4646
Residence (4.62) (3.43) (6.02) (4.61)
Sub total 47163 86102 182492 86592
(85.06) (85.65) (86.27) (85.75)
2 Equipment’s
a Feeders 3560 6096 14568 6494
(6.42) (6.06) (6.88) (6.44)
b Waterer 3310 6256 11930 6023
(5.96) (6.22) (5.64) (5.96)
Litter 111 170 279 165
c stirring/Spade (0.20) (0.17) (0.13) (0.16)
Sub total 6981 12523 26778 12682
(12.59) (12.45) (12.65) (12.55)
3 Other 1301 1896 2254 1718
miscellaneous (2.34) (1.88) (1.06) (1.70)
Total 55444 100522 211524 100991
(100.0) (100.0) (100.0) (100.0)
4 Fixed capital
Investment on
a) per batch 6931 13827 34506 19515
b) per bird 12.64 12.60 12.50 12.60
(Figures in parentheses are percentages to total)
 It is concluded from Table that, the per farm fixed capital
investment on building and equipment‟s increased as size of broiler
farm increased. In building investment broiler house was the main
item of cost in contributing 60.71 per cent in total fixed capital
investment whereas the per bird investment on fixed capital
decreases as the size of broiler farm increases.

5.8: Physical inputs used in broiler poultry production

Per farm physical inputs used in broiler production which

includes labour, feed material, litter material, electricity and water
charges and medicine and other charges are given in Table 5.8

Table 5.8: Per farm physical inputs used in broiler production

Sr.
Particulars Small Medium Large Overall
No.
A) Per farm
1 Labour (days)
a) Male
Family 66.50 69.57 63.20 67.82
Hired 28.50 54.67 94.80 50.89
Total 95.00 124.24 158.00 118.71
b) Female
Family 81.37 85.20 51.14 78.16
Hired 38.29 72.58 134.32 69.16
Total 119.66 157.78 186.56 147.32

2 Feed (kg) 16320 26912.50 52115 26875.91

3 Litter material (kg) 1753.72 2952.18 5414.46 2883.17
4 Electricity and Water 3025 5984 7445
5044
charges (Rs)
5 Medicine and other (Rs) 4340 7899 16994 7991

Per farm male and female labour used in broiler production

at the overall level was 118.71 and 147.32 man days respectively.
Whereas the quantity of feed and litter material used in production
was 26876 kg and 2883 kg respectively. Also the water charges
were Rs.29759 and medicine and other charges were Rs.13035
respectively. Thus it is seen from the table that, per farm physical
inputs used in broiler production increased as size of broiler farms
increase. Raut (2014) observed the similar result in per farm cost
of broiler production.

5.9: Per farm cost of broiler poultry production

The per farm per year total cost of the broiler poultry
production is shown in Table 5.9

It is observed from the Table 5.9 that, the total cost of

production was more (Rs.2043222) on large farms followed by the
medium (Rs. 1053768) and small (Rs.632115) groups. At the
overall level average total cost was Rs.1059430. Similarly the total
fixed cost were highest on large (Rs.35755) followed by medium
(Rs.16909) and small (Rs.9336) poultry farms. The share of
variable cost in total cost was maximum in all the poultry farms; it
was 98.53 per cent in small, 98.40 per cent in medium and 98.26
per cent in large groups respectively.

Among the variable cost, feed cost and price of the day old
chicks were contributing major share in all type of farms. At the
overall level per farm total cost of broiler production was
Rs.1059430. The contribution of variable cost in total cost of
production is 98.39 per cent (Rs.1042409) and fixed cost was 1.61
per cent (Rs.17021) at overall level. Also among the total cost of
production at overall feed cost is major cost contributing more
than three fifth of cost (66.95%) followed by price of one day old
chicks (16.29%), interest on working capital (10.54%), labour
charges (3.49%) and remaining other costs (2.63%) per poultry
farm per year.
Table 5.9: Per farm cost of broiler poultry production
(Figures in Rs.)
Sr.
Particulars Small Medium Large Overall
No.
Variable
A
costs(Rs.)
1 Wages of labour
14250 18636 23700 17806
Male
(2.25) (1.77) (1.16) (1.68)
15556 20511 24253 19152
Female
(2.46) (1.95) (1.19) (1.82)
Price of one day 89528 163089 346356 172542
2
old chicks (14.16) (15.47) (16.95) (16.29)
424320 699725 1354990 698774
3 Feed
(67.17) (66.41) (66.32) (65.95)
Cost of Litter 1754 2952 5414 2883
4
material (0.28) (0.28) (0.26) (0.27)
Electricity and 3025 5984 7445 5044
5
water charges (0.48) (0.57) (0.36) (0.48)
4340 7899 16994 7991
6 Medical expenses
(0.69) (0.75) (0.83) (0.76)
Miscellaneous 3280 6971 13229 6530
7
charges (0.52) (0.66) (0.65) (0.62)
Total Working 556053 925767 1792382 930722
capital (87.97) (87.85) (87.73) (87.85)
Interest on 66726.36 111092 215086 111687
working (10.56) (10.54) (10.53) (10.54)
capital(12% of
total working
capital)
622779 1036859 2007468 1042409
Sub total (A)
(98.53) (98.40) (98.26) (98.39)
B) Fixed costs (Rs)
Depreciation on 3792 6857 14602 6922
1 building and (0.60) (0.65) (0.71) (0.65)
implements
Interest on fixed 5544 10052 21152 10099
2 capital(10% of (0.87) (0.95) (1.03) (0.96)
fixed investment)
9336 16909 35755 17021
Sub total (B)
(1.47) (1.60) (1.74) (1.61)
632115 1053768 2043222 1059430
Total cost (A+B)
(100.00) (100.00) (100.00) (100.00)
 (Figures in parentheses are percentages to total)
It is concluded from the Table that, the per farm variable
cost, fixed cost as well as total cost incurred on broiler production
were increased as the size of broiler poultry farm increased.
5.10: Per bird cost of broiler poultry production

The average cost of production per bird is presented in Table

5.10.

It is seen from the table that, the total cost of broiler

production per bird was highest on small Rs.144, followed by
medium Rs.132 and large Rs.121 groups respectively. However at
overall level it was Rs.132.

At overall level , the highest expenditure was incurred on cost

of feed which was 66.95 per cent followed by cost of chicks 16.29
per cent, interest on working capital 10.54 per cent and labour
charges 3.49 per cent to the total cost. These four items together
shared highest (97.27%) per bird expenditure. Per bird variable
cost incurred on small, medium and large groups was Rs142, Rs.
130, and Rs. 119 respectively. However at the overall level it was
Rs.130. The fixed cost incurred on small, medium and large groups
was Rs.2.12, Rs.2.12 and Rs.2.11 respectively. However at the
overall level it was Rs. 2.12. This indicated that small farm
operated on highest total cost as compared to medium and large
groups.
Table 5.10: Per bird cost of poultry production
(Figures in Rs.)
Sr.
Particulars Small Medium Large Overall
No.
Variable costs
A
(Rs.)
1 Wages of labour
3.25 2.33 1.40 2.21
Male
(2.25) (1.77) (1.16) (1.68)
3.55 2.57 1.43 2.38
Female
(2.46) (1.95) (1.19) (1.81)
Price of one day 20.42 20.44 20.47 20.14
2
old chicks (14.16) (15.47) (16.95) (16.29)
96.78 87.70 80.08 87.00
3 Feed
(67.17) (66.41) (66.32) (65.95)
Cost of Litter 0.40 0.37 0.32 0.36
4
material (0.28) (0.28) (0.26) (0.27)
Electricity and 0.69 0.75 0.44 0.63
5
water charges (0.48) (0.57) (0.36) (0.48)
0.99 0.99 1.00 0.99
6 Medical expenses
(0.69) (0.75) (0.83) (0.76)
Miscellaneous 0.75 0.87 0.78 0.81
7
charges (0.52) (0.66) (0.65) (0.62)
Total Working 126.83 116.02 105.93 115
capital (87.97) (87.85) (87.73) (87.85)
Interest on 15.22 13.92 12.71 13.79
working capital (10.56) (10.54) (10.53) (10.54)
(12% of total
working capital)
142 130 119 130
Sub total (A)
(98.53) (98.40) (98.26) (98.39)
B) Fixed costs (Rs)
Depreciation on 0.86 0.86 0.86 0.86
1 building and (0.60) (0.65) (0.71) (0.65)
implements
Interest on fixed 1.26 1.26 1.25 1.26
2 capital(10% of (0.87) (0.95) (1.03) (0.96)
fixed investment)
2.12 2.12 2.11 2.12
Sub total (B)
(1.47) (1.60) (1.74) (1.61)
144 132 121 132
Total cost (A+B)
(100.00) (100.00) (100.00) (100.00)
(Figures in parentheses are percentages to total)
5.11: Per kg. cost of broiler poultry production

The average cost of production per kg. of broiler poultry birds

is presented in Table 5.11.

It is observed from table that, the total cost of broiler

production per kg. was highest on small Rs. 75, followed by
medium Rs.71 and large Rs.70 poultry units respectively. However
at overall level it was Rs. 71.

At overall the highest expenditure was incurred on cost of

feed which was 65.95 per cent followed by cost of chicks 16.29 per
cent, interest on working capital 10.54 per cent and labour charges
3.49 per cent to total cost. Above four items together shared
highest (96.27%) per kg. expenditure. Per kg variable cost incurred
on small, medium and large groups was Rs.75.16, Rs.70.24 and
Rs.68.97 respectively. However at overall level it was Rs.69.61. The
fixed cost incurred on small, medium and large groups was
Rs.1.11, Rs.1.14 and Rs.1.22 respectively. However at overall level
it was Rs.1.14. The data showed that highest total cost was
operated on small group as compared to medium and large groups.
Table 5.11: Per kg. cost of broiler poultry production
(Figures in Rs.)
Sr.
Particulars Small Medium Large Overall
No.
Variable costs
A
(Rs.)
1 Wages of labour
1.71 1.26 0.81 1.19
Male
(2.24) (1.77) (1.16) (1.68)
1.87 1.39 0.83 1.29
Female
(2.46) (1.95) (1.19) (1.81)
Price of one day 10.74 11.04 11.90 10.88
2
old chicks (14.16) (15.47) (16.95) (16.29)
50.93 47.40 46.55 47.02
3 Feed
(67.17) (66.40) (66.32) (65.95)
Cost of Litter 0.21 0.20 0.19 0.19
4
material (0.28) (0.28) (0.26) (0.27)
Electricity and 0.36 0.40 0.25 0.34
5
water charges (0.48) (0.57) (0.36) (0.48)
0.52 0.53 0.58 0.49
6 Medical expenses
(0.69) (0.75) (0.83) (0.76)
Miscellaneous 0.39 0.47 0.45 0.44
7
charges (0.52) (0.66) (0.65) (0.62)
Total Working 66.75 62.71 61.58 62.16
capital (87.97) (87.85) (87.73) (87.85)
Interest on 8.01 7.52 7.39 7.45
working capital (10.56) (10.54) (10.53) (10.54)
(12% to total
working capital)
74.73 70.24 68.97 70.27
Sub total (A)
(98.53) (98.39) (98.26) (98.39)
B) Fixed costs (Rs)
Depreciation on 0.45 0.46 0.50 0.46
1 building and (0.60) (0.65) (0.71) (0.65)
implements
Interest on fixed 0.66 0.68 0.72 0.69
2 capital(10% of (0.87) (0.95) (1.03) (0.96)
fixed investment)
1.11 1.14 1.22 1.15
Sub total (B)
(1.47) (1.60) (1.74) (1.61)
76 71 70 71
Total cost (A+B)
(100.00) (100.00) (100.00) (100.00)
(Figures in parentheses are percentages to total)
5.12: Production from different size groups of broiler units

The quantity of produce obtained from different size group of

broiler poultry unit were sale of broiler poultry birds, sale of
poultry manure and sale of gunny bags on per farm, per bird. basis
are given in Table 5.12.

Table 5.12: Production from different size groups of broiler

units

Sr. Source of income Small Medium Large Overall

No.
A) Per farm
1 Sale of broiler (kg) 8330.21 14760.94 29102.74 14578.94
2 Manure (kg) 2731 5684 13000 5722.13
3 Sale of empty 190 481 1113 470
gunny bags (Nos.)
B) Per bird
1 Sale of broiler (kg) 1.90 1.85 1.72 1.85
2 Manure (kg) 0.63 0.72 0.77 0.71
3 Sale of empty 0.043 0.060 0.066 0.06
gunny bags (Nos.)

It is seen from the Table 5.12 that, per farm quantity

produced at overall Level from broiler poultry birds was 14578.94
kg of undressed chicken, poultry manure 5722.13 kg and empty
gunny bags were 470 numbers. While per bird it was 1.85kg of
undressed chicken, 0.71 kg of manures and 0.06 numbers of
empty gunny bags from broiler poultry birds at the overall level
respectively.

5.13: Gross returns from different size group of broiler units

The per farm, per bird and per kg. gross returns realized from
various source from different size group of broiler unit were
presented in Table 5.13.
Table 5.13: Gross returns from different size group of broiler
units
(Figures in Rs.)
Sr.
Particulars Small Medium Large Overall
No.
A) Per farm
1 Sale of broiler 691407 1210397 2444630 1206116
(97.93) (97.52) (97.19) (97.50)
2 Manure 13655 28420 65000 28611
(1.93) (2.29) (2.59) (2.31)
3 Sale of empty 950 2405 5565 2350
gunny bags (0.14) (0.19) (0.22) (0.19)
Gross 706012 1241222 2515195 1237076
income (100.00) (100.00) (100.00) (100.00)
B) Per bird
1 Sale of broiler 157.71 151.70 144.47 150.18
(97.93) (97.52) (97.19) (97.50)
2 Manure 3.11 3.56 3.84 3.56
(1.93) (2.29) (2.59) (2.31)
3 Sale of empty 0.22 0.30 0.33 0.29
gunny bags (0.14) (0.19) (0.22) (0.19)
Gross 161 156 149 154
income (100.00) (100.00) (100.00) (100.00)
C) Per kg.
1 Sale of broiler 83.00 82.00 84.00 82.73
(97.93) (97.52) (97.19) (97.50)
2 Manure 1.64 1.92 2.23 1.86
(1.93) (2.29) (2.59) (2.31)
3 Sale of empty 0.11 0.16 0.19 0.15
gunny bags (0.14) (0.19) (0.22) (0.19)
Gross 85 84 86 85
income (100.00) (100.00) (100.00) (100.00)
(Figures in parentheses are percentages to total)

It is revealed from the Table 5.13 that, the per farm returns
obtained from small, medium and large groups was Rs.706012,
Rs.1241222 and Rs.2515195 respectively. However at the overall
level it was Rs.1237077. Out of which 97.50 per cent of gross
return from sale of broiler, 2.31 per cent from sale of manure and
0.19 per cent from sale of empty gunny bags respectively.

The per bird returns obtained from sale of broiler, sale of

manure and sale of gunny bags from different size groups was Rs.
161, Rs.156 and Rs.149 in small, medium and large groups
respectively. However at the overall it was Rs.154, out of which
97.50 per cent returns from sale of broilers, 2.31 per cent from sale
of manure and 0.19 per cent from sale of gunny bags respectively.

The per kg. returns obtained from sale of broiler, sale of

manure and sale of gunny bags from different size groups was
Rs.85, Rs.84 and Rs.86 in small, medium and large groups
respectively. However at overall level it was 83, out of which 97.50
per cent returns from sale of broilers, 2.31 per cent from sale of
manure and 0.19 per cent from sale of gunny bags respectively.

It is concluded from Table 5.13 that, per farm, per bird and
per kg. gross returns obtained from different size groups increased
as the size of poultry farm increased.

5.14: Profitability in broiler poultry production

The per farm, per bird and per kg. costs and returns as well
as benefit cost ratios were calculated and are presented in Table
5.14.

Table 5.14 showed that, the per farm total cost of production
of broiler poultry birds form different farm size groups was
Rs.632115, Rs.1053768 and Rs.2043222 for small, medium and
large groups respectively. However at the overall level it was
Rs.1059430. Whereas gross returns obtained from different size
groups were Rs.706012, Rs.1241222 and Rs.2515195 from small,
medium and large groups respectively. However at overall level was
Rs.1237076. The per farm net returns obtained from different size
groups was Rs.73897, Rs.187454 and Rs.471973 from small,
medium and large groups respectively. However at the overall level
it was Rs.187061. The per bird net returns obtained from different
size groups was Rs.17, Rs.23 and Rs. 28 from small, medium and
large groups respectively. However at the overall level it was Rs.22.
It is seen from table that, the per bird total cost of production from
different size groups was Rs.144, Rs.132 and Rs.121 for small,
medium and large groups respectively. However at the overall level
it was Rs.132. Gross returns obtained from different size groups
were Rs.161, Rs.156 and Rs.149 from small, medium and large
groups respectively. However at the overall level it was Rs.154.

However the per kg. total cost of production for different size
groups was Rs.76, Rs.71 and Rs.70 for small, medium and large
groups respectively. However at overall level it was Rs.71.Gross
returns obtained from different size groups were Rs.85, Rs.84 and
Rs.86 respectively. However at overall level it was 85. The per farm,
per bird and per kg. cost benefit ratios from different size groups
was 1.12, 1.18 and 1.23 for small, medium and large groups
respectively. However at the overall level it was 1.17. Similar
findings were reported by Shaikh (2005) in Gujrat state and
Ganeshkumar and Rai (2006) in Andaman Nicobar Island for cost
returns and profitability in poultry faming.

It can be concluded from the Table 5.14 that, net returns and
benefit cost ratios per farm, per bird as well as per kg. increased
with increased in farm size of poultry units. This indicated that, as
the size of poultry unit increased the net margin over the rupee
invested on broiler poultry birds also increased.
Table 5.14: Profitability in broiler poultry production
(Figures in Rs.)
Sr.
Particulars Small Medium Large Overall
No.
I) Per farm
1 Total cost 632115 1053768 2043222 1059430
2 Returns from
Sale of bird 691407 1210397 2444630 1206116
Sale of manure 13655 28420 65000 28611
Sale of gunny bags 950 2405 5565 2350
Sub total 706012 1241222 2515195 1237076
3 Net returns 73897 187454 471973 187060
4 Benefit cost ratio 1:1.12 1:1.18 1:1.23 1:1.17
II) Per bird
1 Total cost 144 132 121 132
2 Returns from
Sale of bird 158 152 144 151
Sale of manure 3.11 3.56 3.84 3.56
Sale of gunny bags 0.22 0.30 0.33 0.29
Sub total 161 156 149 154
3 Net returns 17 23 28 22
4 Benefit cost ratio 1:1.12 1:1.18 1:1.23 1:1.17
III) Per Kg.
1 Total cost 76 71 70 71
2 Returns from
Sale of bird 83 82 84 83
Sale of manure 1.64 1.92 2.23 1.92
Sale of gunny bags 0.11 0.16 0.19 0.16
Sub total 85 84 86 85
3 Net returns 9 13 16 14
4 Benefit cost ratio 1:1.12 1:1.18 1:1.23 1:1.17
(Figures in parentheses are percentages to total)
5.15: Cost of production per kg. of live weight

In broiler production sizable amount of income was received

from the selling of birds and from other by-products like manure
and gunny bags. Therefore, the cost of production per kg of live
weight was calculated (net of by-products value) and presented in
Table 5.15

Table 5.15: Cost of production per kg of live weight of broilers

Sr. Size groups

Particulars Overall
No. Small Medium Large
1 Average live weight per
1.90 1.85 1.72 1.85
bird (kg)
2 Per bird cost of rearing
144 132 121 132
(Rs.)
3 Per bird Value of by-
3.33 3.86 4.17 3.85
produce (Rs.)
4 Cost of production net
141 128 117 128
of by-produce (Rs.)
5 Cost of production per
74 69 68 69
kg of live weight (Rs.)

It is observed from the Table 5.15 that, after deducting the

value of by-product from the total cost of production. The cost of
production per kg of live weight for different size groups were
Rs.74, Rs.69 and Rs.68 for small, medium and large groups
respectively. However at the overall level it was Rs.69. It is
concluded from the Table 5.15 that, the cost of production per kg
of live weight decreased as the size of broiler farm increased.

5.16: Feed conversion ratio

Feed conversion ratio per bird for different size groups of
broiler farms was calculated and presented in Table 5.16
Table 5.16: Feed conversion ratio in broiler poultry
production
Feed Feed
Sr. Live weight
Size groups consumed conversion
No. per bird (kg)
per bird (kg) ratio
1 Small 1.90 3.72 1.96
2 Medium 1.85 3.37 1.82
3 Large 1.72 3.08 1.79
4 Overall 1.85 3.35 1.81

It is seen from the Table 5.16 that, feed conversion ratios of

different size groups was 1.96, 1.82, and 1.79 for small, medium
and large groups respectively. However at the overall level it was
1.81. It is also observed that, the use of feed has not increased
profits, conversely it affected in high feed conversion ratio. This
was reflected in inverse relationship in feed and B.C. ratio.

5.17: Live weight-feed price ratio

Feed price ratio per bird for different size groups of broiler
farms was calculated and presented in Table 5.17

Table 5.17: Live weight-feed price ratio in different size groups

of broiler poultry units
Value of
Value of Live
Feed
Sr. weight Feed
Size consumed
No. produced per price
groups per bird
bird (Rs.) Ratio
(Rs.)
1 Small 160 97 1.65
2 Medium 152 88 1.73
3 Large 144 80 1.80
4 Overall 154 87 1.77

This analysis showed that, the live weight price ratio of

different size groups of broiler farms was greater than one. This
indicated that increase in live weight revenue over the unit cost,
increased on the feed. The live weight feed price ratios worked out
to be 1.65, 1.73 and 1.80 for small, medium and large groups
respectively. However at the overall level it was 1.77. Similarly cost
of consumption and live weight has inverse relationship with feed
price ratio.

5.18: Break-even output in broiler poultry production

The break-even analysis of each groups of broiler farm were
presented in Table 5.18

Table 5.18: Break-even output in broiler poultry production.

Sr. Size groups

Particulars Overall
No Small Medium Large
1 Fixed cost per farm (Rs.) 9336 16909 35755 17021
2 Price per kg of live
83 82 84 83
weight (Rs.)
3 Variable cost net of by-
produce per kg of live 73 68 67 70
weight (Rs.)
4 Break even output in kg
934 1208 2103 1309
of live weight
5 Actual output produced
per farm per batch in kg 1041 2030 4748 2136
of live weight
6 Break even number of
birds corresponding to 492 653 1223 708
break even output (Nos.)
7 Actual bird reared per
548 1098 2760 1156
farm per batch (Nos.)
8 Margin of safety (%) 89.78 59.47 44.31 61.24

It is revealed from the Table 5.17, that break- even point for
broiler production was 934 kg, 1208 kg and 2103 kg for small,
medium and large groups respectively. However at the overall level
it was 1309 kg. To produce the break-even point output from
different categories of farms, number of birds to be raised at
average productivity should be 492, 653 and 1223 on small,
medium and large groups respectively. However at the overall level
it was 708. This indicated that broiler farms were operating above
the break-even point. The margin of safety was observed that,
89.78 per cent, 59.47 per cent and 44.31 per cent in small,
medium and large respectively. However at the overall level it was
61.24 per cent.

5.19: Functional analysis

a) Cobb-Douglas production function

The Cobb-Douglas type of production function was found to

be “best fit” to the present data. The regression coefficients for
identified resources for broiler production are presented in
Table.5.19 (a). It was observed that at overall level the value of
coefficient of multiple determinations (R2) was 0.96, indicated that
96 per cent changes in broiler production was explained by
explainatory variables included in the function. The sum of
production elasticity was 1.05 indicating increasing returns to
scale.

Table 5.19 a) Production coefficients for C.D. type production

function of broiler production
Sr. Variables Production Standard Error ‘t’ value
No. coefficient
Labour (days) 0.163** 0.07294 2.2399
1
X1
2 Feed (kg.) X2 0.792** 0.09874 8.0216
Chicks (Nos.) 0.0927** 0.04201 2.2072
3
X3
Veterinary 0.00004ns 0.12356 0.0054
4
aids (Litre) X4
Return to 1.048288
scale (∑bi)
R2 0.96

(**Significant at 5% level of probability)

 It is observed from Table 5.19 a) that the labour (X1), Feed
(X2) and chicks (X3) were important variables influencing broiler
positively and significantly while veterinary aids (X4) was positive
but non-significant at 5 per cent level of probability. In this the
feed was most important factor which utilized to enhancement in
the weight gain of broilers while due to high availability of family
labour, labour became significant.

b) Resource use efficiency in broiler poultry production

The basic criterion of an efficient resource use is that MVP
input just covers the factor cost i.e. MVP.Xi = PXi. Hence, for
evaluating optimum use of inputs, the ratios of marginal value
products for different factors their different factor cost were
estimated and presented in Table 5.19.

Table 5.19 b) Resource use efficiency in broiler production

Sr.
Variables MPP MVP FC MVP/FC Remark
No.
1 Labour 6.92588 574.85 130 4.421 Under
(days) X1 utilized
2 Feed 0.39281 32.603 26 1.253 Under
(kg.) X2 utilized
3 Chick 0.0786 6.5242 20 0.326 over
(Nos.) X3 utilized
4 Veterinary 0.05926 4.9185 1 4.918 Under
aids utilized
(Litre) X4

It is observed from Table 5.19 b) that, the ratios of labour

(X1), Feed (X2) and veterinary aids (X4) are greater than one so
they became under-utilized which underlined the scope of
expanding the use of these inputs while the expenditure on
chicks(X3) to be curtailed their over utilization. Ukwuaba and Inoni
(2012) observed similar results for constraints in poultry
production in delta state, Nigeria.
5.20: Disposal pattern of broiler poultry production

Disposal pattern followed by the sample broiler poultry

owners were given in Table 5.20

The total quantity produced in different size groups was 8330

kg, 14761 kg and 29103 kg in small, medium and large groups
respectively. However at the overall level it was 14579 kg. Out of
which 0.07 per cent quantity (10.72 kg) utilized for home
consumption, 0.70 per cent quantity (117kg) were sold to the local
sale, 3.53 per cent quantity (515 kg) were sold to local trader and
95.51 per cent quantity (13936 kg) were sold to the wholesaler
respectively. In this total marketable surplus equals to the total
quantity sold. Mahadik (1997), Mane (1999) and Raut (2014)
observed similar result for disposal pattern in poultry farming in
Raigad district of Maharashtra state.

Table 5.20: Disposal pattern of broiler poultry production

(Quantity in kg)
Sr. Size of broiler poultry unit
Particulars Overall
No. Small Medium Large
Total broiler 8330 14761 29103 14579
production (100.00) (100.00) (100.00) (100.00)
Home 10 13 6 11
1
consumption (0.12) (0.06) (0.03) (0.07)
Total
8320 14748 29097 14568
marketable
(99.12) (99.94) (99.97) (99.93)
surplus
139 115 70 117
2 Local sale
(1.67) (0.78) (0.24) (0.70)
Sale to local 750 391 276 515
3
trader (9.00) (2.65) (0.95) (3.53)
Sale to 7431 14241 28751 13936
4
wholesaler (89.21) (96.39) (98.77) (95.51)
Total
8320 14748 29097 14568
quantity
(99.12) (99.94) (99.97) (99.93)
sold
(Figures in parentheses are percentages to total production)
 It is observed from the Table 5.20 that, quantity for home
consumption, local sale and sale to local trader was decreased as
the size of broiler farm increased. Whereas the quantity sold to
wholesaler increased as the size of broiler farm increased.

5.21: Problems faced by the poultry owners

Problems faced by broiler farmers in respect of production

and disposal were classified under 10 categories and presented in
Table 5.20.

Table 5.21: Problems faced by the poultry owners

Sr. Size groups

Problems Overall
No. Small Medium Large
1 High price and non 18 22 7 47
availability of feed (75.00) (84.61) (70.00) (78.33)
in time
2 Price variation 17 20 6 41
and non (70.83) (76.92) (60.00) (68.33)
availability of
chicks in time
3 Fluctuation in 18 17 6 41
market prices of (75.00) (65.38) (60.00) (68.33)
birds
4 Delay of receiving 19 16 1 36
payment (79.16) (61.53) (10.00) (60.00)
5 Power supply 11 9 3 23
failure (electricity) (45.83) (34.61) (30.00) (38.33)
and high labour
wages
6 Disease outbreak 7 8 3 18
(29.46) (30.77) (30.00) (30.00)
7 Non availability of 7 5 1 13
transport in time (29.16) (19.23) (10.00) (21.66)
Total 24 26 10 60
(100.00) (100.00) (100.0) (100.00)
(Figures in parentheses are percentages to total)

It is observed from the Table 5.21 that, the major problems

faced by broiler farmers in South Konkan region at overall level
was high cost and non-availability of feed in time (78.33%) followed
by price variation and non availability of chicks in time (68.33%),
fluctuation in market prices of birds (68.33%), delay of receiving
payment (60.00%), power supply failure (electricity) and high
labour wages (38.33%), disease outbreak (30.00%), non-availability
of transport in time (21.66%) respectively. Venkatasubramaniam
(1998) and Mane (1999), Ukwuaba and Inoni (2012) observed
similar results for constraints in poultry production in Tamilnadu,
Maharashtra state and delta state, Nigeria respectively.

It is concluded from the Table 5.21 that, the major problems

in broiler poultry production in South Konkan region in different
size groups was high cost and non-availability of feed in time
followed by, price variation and non availability of chicks in time,
fluctuation in market prices of birds, delay in receiving payment
and power supply failure (electricity) and labour wages.
 CHAPTER VI
SUMMARY AND CONCLUSIONS
Poultry is one of the fastest growing segments of the
agricultural sector in India today. It is growing at much faster rate
than any other element of crop and livestock sector. From
backyard venture in the early 1960`s has now been transformed
into a strong agro-based farming activity In recent years due to
unexpected climatic and environmental changes in weather
conditions Indian Agriculture not been consistent with production
pattern. Under such condition there is need to have allied business
related to agriculture which able to give continuous and frequent
income to farmer. Broiler farming is the best alternative option to
them. The poultry sector is one of the rare examples of the social
and economic development, which has attained its present status
without much help from international agencies or investment from
the government plans compared to crop sector. Poultry farming
occupies a pivotal position due to its enormous potential to bring
about rapid economic growth with low investment. Poultry sector
provides the higher rate of employment to people. Compared with
the rest of livestock sector, the poultry industry in India is better
organized, vibrant and is progressing towards modernization.

Poultry has become a strong agro-based business with 2.2

per cent increase per annum in the world. It accounts broiler meat
production 84640 thousand metric tons in the year 2013 as
compared to 82800 thousand metric tons in 2012.(USDA report
2013). Highest meat producing country in world is United State
followed by Brazil, China, European Union and India. United State
ranks first in world with 17752 thousand metric tons production.
India ranks fifth largest producer of poultry broiler meat in world
with 3420 thousand metric tons production. India has been
growing on the world poultry map as the 3rd largest egg (66 billion
eggs) and 5th largest poultry meat (3.6 million tons) producer in
year 2014.

As broiler farming is emerging enterprises, it is necessary to

make efforts towards study of economic aspects of broiler farming.
Therefore, to have scientific information on various economic
aspects of broiler farming in South Konkan region, present
investigation was undertaken with following specific objectives.

1) To study present use of resources in broiler production.

2) To work out costs, returns and profitability in broiler
production.
3) To study resource use efficiency of broiler production.
4) To identify problems in broiler production and disposal.

Methodology

In present study two stage sampling method was followed

with selection of region (study area) as primary unit and broiler
poultry unit as an ultimate unit. The Ratnagiri and Sindhudurg
districts of Konkan region was selected purposively for the present
study.

Six Tahsils namely, Dapoli, Khed and Chiplun from Ratnagiri

district and Kudal, Vengurle and Sawantwadi from Sindhudurg
district having maximum broiler poultry units were selected
purposively. From each Tahsil, ten broiler poultry units were
selected randomly to obtain appropriate result. Sample broiler
poultry owners were classified into different groups according to
number of broiler poultry birds per batch. The grouping was done
with following procedure.

The classification was carried out with the help of mean and
standard deviation as follows i.e., Arithmetic mean minus half
standard deviation for I category, Arithmetic mean minus half
standard deviation to Arithmetic mean plus half standard deviation
for II category, Arithmetic mean plus half standard deviation and
above For III category.

I) Small broiler farms up to 749 birds per batch,

II) Medium broiler farms from 750 birds to 1628 birds per
batch,
III) Large broiler farms 1629 birds and above per batch.

The data were collected by survey method with the help of

specially designed schedule by personal interview from the broiler
poultry owners. The information and data for present investigation
pertained to the Agricultural year 2013-14 and were collected in
the month of December 2014. Data collected from the broiler
poultry owners was analysed as per the objectives of the study. For
analysis and presentation of data, simple statistical tools like
averages, percentages and ratios were used. The standard cost
concepts of farm management study were also used to estimate
cost and returns in broiler poultry farming viz., variable costs and
fixed costs.

The total cost of production, gross returns, benefit cost

ratios, break-even point for profitability and productivity of poultry
birds were compared with the help of ratios, percentages and
averages. Functional analysis was also carried out to study the
relationship between output and a set of input variables and their
problems were analysed in the study.

Findings

The composition of broiler poultry owners indicated that, out

of 60 broiler poultry owners in South Konkan region, 24 (40%)
belonged to small group, 26 (43.33%) belonged to medium group
and 10 (16.67%) belonged to large group on the basis of number of
birds reared per batch. The average age of sample broiler poultry
owners of small, medium and large group was 41.08, 42.30 and
45.80 years, respectively. However, it was 42.39 years at the
overall level.

The average educational score of small, medium and large

groups of broiler poultry owners was 8.87, 10.07 and 11.60
respectively. However, it was 9.87 at overall level. This indicated
that the educational status of almost all the broiler poultry owners
was good. The majority 66.66 per cent of broiler owners were
engaged in broiler farming as their main occupation while 31.46
per cent broiler owners worked as subsidiary occupation at overall
level.

The average experience of poultry owners were 8.70, 11.00

and 10.57 years of small, medium and large group respectively
whereas at overall level it was 10.00 years. More than half (53.33%)
of the poultry owners got training in poultry management at overall
level. The average distance of poultry farms from main road was
5.81 km. at the overall level, while at small, medium and large it
was 6.67, 5.46 and 4.65 km. respectively. Most of the poultry
owners sale their output viz. 90 per cent from small, 94 per cent
from medium and 96 per cent from large group poultry farms were
beyond 10 km. from market while at overall it was 92.53 per cent
which means they sold produce at long distances market. The
distance of poultry farm from other poultry farm showed that, for
small (33.33%), medium (26.92%) and for large (20.00%) as well as
at overall level it was 28.33 per cent. Poultry farms were more than
one km. away from their poultry farm.

The average size of land holding was 1.46, 1.55 and 1.52 ha
in small, medium and large groups respectively. However at the
overall level it was 1.50 ha. The total cultivated land at overall level
was 1.32 ha. It was 1.34, 1.31 and 1.30 ha in small, medium and
large groups respectively. The proportion of un-irrigated area in the
total land holding was more than the irrigated area in all size
groups. At the overall level irrigated area was 0.55 ha (36.67%) and
unirrigated area was 0.77ha (51.37%).

The proportion of uncultivated land was 6.67 per cent at the

overall level to total land holding. It is also revealed from the table
that, the proportion of permanent fallow land and current fallow
land was 3.33 and 2.00 per cent respectively at the overall level to
total land holding. At the overall level the gross cropped area was
1.68 ha. Out of the gross cropped area at the overall level, 58.33
per cent was under Kharif crops and 13.70 per cent was under
Rabi paddy, the area under Kharif Nagli, Rabi vegetables and
perennial Mango and Cashew was 40.47 per cent. Very less 1.19
per cent area was under Rabi Wal.

The paddy was dominant crop in Kharif and Rabi season.

Also the net cultivated area was highest in large group (1.33 ha.)
and medium (1.33 ha.) followed by small (1.26 ha.) groups
respectively. Whereas at the overall level the net cultivated area
was 1.30 ha. The cropping intensity was highest in large followed
by small and medium groups; it was 137.59 per cent, 128.57 per
cent and 126.98 per cent respectively. At the overall level it was
129.44 per cent.

The per farm investment on capital assets was highest Rs.

1204350 on large farm followed by Rs.1011043 on medium and
Rs.882615 on small farm respectively. However at the overall it
was Rs.990890. At the overall level the highest investment on land
Rs. 603600 followed by buildings Rs.284301, livestock Rs.74276
and implements, machinery and equipments of broiler unit
Rs.17255 respectively. Per farm investment on land in small,
medium and large group was Rs.584000, Rs.620000 and
Rs.608000 respectively. Investment on buildings in small, medium
and large group was Rs. 206414, Rs.287115 and Rs.463908
respectively. Investment on livestock on small, medium and large
group was Rs.72833, Rs. 74042 and Rs.78350 respectively. The
investment on implements, machinery and hand tools on small,
medium and large groups; was Rs.7409, Rs.8650 and Rs.12388
respectively. This showed that, investment on fixed assets in
different size groups was increased as the size of broiler farm
increased.

The average number of broiler birds those could be reared per

batch was 562, 1127 and 2850 in case of small, medium and large
groups respectively. However, the actual size of broiler per batch
was 548.04, 1097.51 and 2760.23 birds in small, medium and
large groups respectively. At the overall level in deep litter system,
capacity of rearing per batch was 1188 birds but actual birds
reared were 1154.84. Considering mortality of birds per batch
among the different size groups it was highest in large (3.15%)
followed by medium (2.61%) and small (2.57%) groups respectively.
However at the overall level it was 2.68 per cent.

Among the size groups average number of batches taken per

year was highest 8.00 in small followed by 7.27 in medium and
6.13 in large poultry units respectively. However at overall level it
was 7.37 batches per year. The total number of birds reared per
year per farm varies from 4384 in small followed by 7979 in
medium and 16920 in large units respectively. The average live
weight per bird varies from 1.72 kg to 1.90 kg per bird. However, at
the overall level number of birds reared per year per farm was 8031
per unit with average weight of 1.85 kg per bird.
 Per farm fixed capital investment on broiler farm in small,
medium and large groups, was Rs.55444, Rs.100522 and
Rs.211524 respectively. Whereas at overall level it was Rs.100991,
out of which Rs.86592 were invested on buildings, Rs.12682 was
invested on equipment and Rs.1718 on other miscellaneous items
like buckets, weighing balance and water infrastructure etc.
The fixed capital investment per batch increased as size of
broiler farm increased; it was Rs.6931, Rs.13827 and Rs.34506 in
small, medium and large broiler poultry units respectively.
However at the overall level it was Rs.19515. Also the per bird
investment on fixed capital assets decreased as the size of broiler
farms increased, it was Rs.12.64, Rs.12.60 and Rs.12.50 in small,
medium and large broiler poultry units respectively. However at the
overall level it was Rs.12.60.
Per farm male and female labour used in broiler production
at the overall level was 118.71 and 147.32 man days respectively.
Whereas the quantity of feed and litter material used in production
was 26875.91 kg and 2883.17 kg respectively. Also the electricity
and water charges were Rs. 5044 and medicine and other charges
were Rs.7991 respectively.

The total cost of production was found highest on large

(Rs.2043222) followed by medium (Rs.1053768) and small
(Rs.632115) groups. At the overall level average total cost was
Rs.1059430. Similarly the total fixed cost were highest on large
(Rs.35755) followed by medium (Rs.16909) and small (Rs.9336)
poultry farms. The share of variable cost in total cost was
maximum in all the poultry farms; it was 98.53 per cent in small,
98.40 per cent in medium and 98.26 per cent in large groups
respectively.
 Among the variable cost feed cost and price of the day old
chicks were contributing major item of the cost in all the farm size.
At the overall level per farm total cost of broiler production was
Rs.1059430. The contribution of variable cost in total cost of
production is 98.39 per cent (Rs.1042409) and fixed cost was 1.61
per cent (Rs.17021). Among the total cost of production feed cost is
major cost contributing more than three fifth of cost (65.95%)
followed by price of one day old chicks (16.29%), interest on
working capital (10.54%), labour charges (3.50%) and remaining
other costs (3.72%) per poultry farm.

The total cost of broiler production per bird was highest on

small Rs.144, followed by medium Rs.132 and large Rs.121 groups
respectively. However at the overall level it was Rs.132. This
indicated that small farm operated on highest total cost as
compared to medium and large groups. At overall level, the highest
expenditure was incurred on cost of feed which was 65.95 per cent
followed by cost of chicks 16.29 per cent, interest on working
capital 10.54 per cent and labour charges 2.72 per cent to the total
cost. These four items together shared highest (96.28%) per bird
expenditure. Per bird variable cost incurred on small, medium and
large groups was Rs.142, Rs.130, and Rs.119 respectively.
However at the overall level it was Rs.130. The fixed cost incurred
on small, medium and large groups was Rs.2.12, Rs.2.12 and
Rs.2.11 respectively. However at the overall level it was Rs.2.12.

The total cost of broiler production per bird was highest on

small Rs.76, followed by medium Rs.71 and large group Rs.70
respectively. However at the overall level it was Rs.71. This
indicated that small farm operated on highest total cost as
compared to medium and large groups. At overall level , the
highest expenditure was incurred on cost of feed which was 65.95
per cent followed by cost of chicks 16.29 per cent, interest on
working capital 10.54 per cent and labour charges 2.72 per cent to
the total cost. These four items together shared highest (96.28%)
per bird expenditure. Per bird variable cost incurred on small,
medium and large groups was Rs.74.73, Rs.70.24, and Rs.68.97
respectively. However at the overall level it was Rs.70.27. The fixed
cost incurred on small, medium and large groups was Rs.1.11,
Rs.1.14 and Rs.1.22 respectively. However at the overall level it
was Rs.1.15.

Per farm quantity produced at overall Level from broiler

poultry birds was 14579 kg, poultry manure was 5722 kg and
empty gunny bags was 470 numbers. While per bird it was 1.85
kg, 0.71 kg and 0.06 numbers from broiler poultry birds, poultry
manures and gunny bags at the overall level respectively. This
finding shows that, per farm and per bird quantity produced from
different size groups increased as the size of broiler farm increased.

Per farm returns obtained from small, medium and large

groups were Rs.706012, Rs.1241222 and Rs.2515195 respectively.
However at the overall level it was Rs.1237076. Out of which 97.50
per cent from sale of broiler, 2.31 per cent from sale of manure and
0.19 per cent from sale of empty gunny bags respectively.

The per bird returns obtained from sale of broiler, sale of

manure and sale of gunny bags from different size groups was
Rs.161, Rs.156 and Rs.149 in small, medium and large groups
respectively. However at overall level it was Rs.154.

The per kg. returns obtained from sale of broiler, sale of

manure and sale of gunny bags from different size groups was
Rs.85, Rs.84 and Rs.86 in small, medium and large groups
respectively. However at overall level it was Rs.85.
 Per farm gross Returns obtained from different size groups
were Rs.706012, Rs.1241222 and Rs.2515195 from small, medium
and large groups respectively. However at overall level was
Rs.1237076. The per farm net returns obtained from different size
groups was Rs.73897, Rs.187454 and Rs.471973 from small,
medium and large groups respectively. However at the overall level
it was Rs.187060. The per bird net returns obtained from different
size groups was Rs.17, Rs.23 and Rs.28 from small, medium and
large groups respectively. However at the overall level it was Rs.22.

Per bird gross Returns obtained from different size groups

were Rs.161, Rs.156 and Rs.149 from small, medium and large
groups respectively. However at the overall level it was Rs.154. The
per farm and per bird cost benefit ratios from different size groups
was 1:1.12, 1:1.18 and 1:1.23 for small, medium and large groups
respectively. However at the overall level it was 1:1.17.

The per kg. net returns were Rs.9, Rs.13 and Rs.16 for small,
medium and large however at overall it was Rs.14.The total gross
returns were Rs.85, Rs.84 and Rs.86 for small, medium and large
group respectively.

The cost of production per kg of live weight for different size

groups were Rs.76, Rs.69 and Rs.68 for small, medium and large
groups respectively. However at the overall level it was Rs.69. Feed
conversion ratios of different size groups was 1.96, 1.82, and 1.79
for small, medium and large groups respectively. However at the
overall level it was 1.81. This indicated that, the feed conversion
ratio decreased as the size of broiler farms increased. The live
weight feed price ratio worked out to be 1.65, 1.73 and 1.80 for
small, medium and large groups respectively.
 The break- even point for broiler production was 934 kg,
1208 kg and 2103 kg for small, medium and large groups
respectively. However at the overall level it was 1309 kg. To
produce the break-even point output from different categories of
farm, number of birds to be raised at average productivity should
be 492, 653 and 1223 on small, medium and large groups
respectively. However at the overall level it was 708. This indicated
that broiler farms were operating above the break-even point. The
margin of safety was observed that, 89.78 per cent, 59.47 per cent
and 44.31 per cent in small, medium and large respectively.
However at the overall level it was 61.24 per cent.

In functional analysis, at overall level the value of coefficient

of multiple determinations (R2) was 0.96, indicated that 96 per cent
changes in broiler production was explained by explanatory
variables included in the function. The sum of production elasticity
was 1.05 indicating increasing returns to scale. The production
coefficients for labour (X1), Feed (X2) and chicks (X3) were positive
and found statistically significant while veterinary aids (X4) was
positive but statistically non-significant at 5 per cent level of
probability. The ratios of labour (X1), Feed (X2) and veterinary (X4)
are greater than one so they became under-utilized while the
expenditure on chicks(X3) to be curtailed their over utilization.

The total quantity produced in different size groups was 8330

kg, 14761 kg and 29103 kg in small, medium and large groups
respectively. However at the overall level it was 14579 kg. Out of
which 0.07 per cent quantity (10.72 kg) utilized for home
consumption, 0.70 per cent quantity (117.17 kg) were sold to the
local sale, 3.53 per cent quantity (515.47 kg) were sold to local
trader and 95.51 per cent quantity (13936 kg) were sold to the
wholesaler respectively. It is also seen from table that total
marketable surplus equals to the total quantity sold.

The major problems faced by broiler farmers in South

Konkan region at overall level was high cost and non-availability of
feed in time (78.33%) followed by price variation and non
availability of chicks in time (68.33%), fluctuation in market prices
of sale (68.33%), delay of receiving payment (60.00%), power
supply failure (electricity) and high labour wages (38.33%), disease
outbreak (30.00%), non-availability of transport in time (21.66%)
respectively.

Conclusions

The following conclusions are drawn from present study;

1. The number of batches reared per farm per year were 8.00, 7.27
and 6.13 in small, medium and large poultry farms respectively,
with an average per bird live weight 1.90 kg,1.85 and 1.72 in
the same order.

2. Per farm total cost of production was found highest on large

poultry farm (Rs.20,43,222) followed by the medium
(Rs.10,53,768) and small (Rs.6,32,115) poultry farms. The cost
of production per kg of live weight has inverse relation with the
size of broiler farms.

3. Per bird total cost of broiler production was highest on small

broiler farm (Rs.144) followed by medium (Rs.132) and large
poultry farms (Rs.121) with the overall average of Rs. 132. Per
kg. total cost of broiler production was highest on broiler farm
(Rs.76) followed by medium (Rs.71) and large poultry farms
(Rs.70) with overall level of Rs.71.

4. Per farm gross returns obtained from small, medium and large
groups were Rs.706012, Rs.1241222 and Rs.2515195
 respectively. However at overall level it was 1237076. Out of
which 97.50 per cent from sale of broiler, 2.30 per cent from
sale of manure and 0.19 per cent from sale of empty gunny
bags.

5. The per bird gross returns obtained from different size of groups
were Rs.161, Rs.156 and Rs.149 in small, medium and large
poultry farms respectively with an overall average Rs.154. The
per kg. gross returns obtained from small farms Rs.85, medium
farms Rs.84 and large farms were Rs.86 with overall level Rs.85.

6. The per farm, per bird and per kg. benefit cost ratios at overall
level was 1:1.17, whereas different size groups it was 1:1.12,
1:1.18 and 1:1.23 from small, medium and large groups
respectively.

7. The price efficiency ratio has positive relationship whereas feed

conversion ratio had inverse relationship with size of poultry
farms.

8. The break even analysis revealed that to produce the break-even

point output from different categories of farms, number of birds
to be raised at average productivity should be 492, 653 and
1223 on small, medium and large groups respectively.

9. At overall level of broiler production the ratio of MVP/MFC is

greater than one for labour (days), feed (kg.) and veterinary
(litter) indicated that these resources were underutilized while
chicks (Nos.) was over utilized.

10. The quantity sold to wholesaler increased as the size of broiler

farm increased.

11. The major problems of broiler poultry production in South

Konkan region in different size groups were high price and non
availability of feed in time followed by price variation and non
availability of chicks in time, fluctuation in market prices of
birds, delay in receiving payment and power supply failure and
high labour wages.
 Plate 1. Researcher interviewing the respondent.

Plate 2. Day old chicks at the time of brooding stage

 Plate 3. Broiler poultry birds at 18-20 days old

Plate 4. Broiler poultry birds at the marketing stage

Plate 5. Vaccination in broiler poultry birds at chick stage

late 6. Litter starring operation in broiler poultry farming

 CHAPTER II
REVIEW OF LITERATURE

Review of literature is an essential aspect, which helps the

researcher to get more acquainted with the subject matter and
directs his efforts towards the desired goal. A comprehensive
review of literature is of paramount importance to any research
endeavor. The researcher of the present project had tried his best
to collect the references directly related to the topic under
investigation; however, he could not get those in adequate number.
So, the references having indirect or derived application to the
present study were also collected, thus, in this chapter, a
comprehensive review of directly and indirectly related studies has
been presented in brief under the following sub-heads.

2.1 Present use of resources in broiler production.

2.2 Costs, returns and profitability in broiler production.
2.3 Resource use efficiency of broiler production.
2.4 Problems in broiler production and disposal.
2.1 Present use of resources in broiler production.

Mbanasor (2002) analyzed the collected data of poultry

enterprises in Abia State, Nigeria by use of descriptive statistics
and econometric estimations. Efficiency in resource use pattern
was examined using Marginal Value Product of each of the
examined resources with its unit price. It was identified that there
are possibilities of increasing broiler meat supply through higher
levels of resource use pattern under existing technology.

Nargis et al. (2013) studied the assessment of existing poultry

production and consumption patterns and constraints of poultry
rearing of rural farmers in selected Northern areas of Bangladesh.
A total of 50 households; 25 from Parakochua and 25 from
Baraticry village in the Gaibandha district were selected for this
study. The correlations coefficient was computed to determine the
relationships among the dependent and independent variables. The
findings showed that the average populations of chickens, ducks,
and pigeons were 8.4, 7.19, and 6 respectively. Approximately 64
per cent of the farmers were low producers compared to 30 per
cent for medium, whereas only 6 per cent higher producers. In
terms of consumption, the average among all birds was 8.1, and
the highest proportion (74%) of them was in the low consumption
category. With regard to poultry knowledge, approximately 78 per
cent of the farmers had poor overall poultry knowledge. The three
most frequently cited problems faced by farmers in the process of
rearing poultry were high prevalence of poultry diseases,
inadequate supply of vaccine and medicine and scarcity of feed.

Kalamkar & Atkare (2014) analyzed the primary data

collected from the broiler units in Maharashtra. The primary data
on cost of broiler production and marketing had been collected
from selected contract and non-contract sample broiler farmers. He
revealed that more than 76 per cent of farmers from both contract
and non contract had education up to secondary level. Most of the
farmers had agriculture is main and poultry as subsidiary
occupation. About 25 per cent farmers had training in poultry
management from contract group, while 3.3 per cent non contract
farmers had exposure to such training programmes. The average
age of farmers for small, medium and large group in non-contract
farming was 40.8, 39.4 and 43.6 years respectively. Whereas
average experience of farmers in poultry rearing was 8.3, 7.3, 8.3
years for small, medium and large group respectively.

Raut (2014) conducted study on „Economics of production

and disposal of broiler poultry birds in Raigad district.‟ He
concluded that per farm capital investment on broiler units in
small, medium and large groups were Rs.164455, Rs.322271 and
Rs.647298 respectively. Whereas at overall level it was Rs.335963,
out of which Rs.292,616 was invested on buildings,Rs.40249 was
invested on equipment and 3098 on other miscellaneous items.
Whereas per bird investment on fixed capital assets was Rs.14.48,
Rs.14.34 and Rs.13.98 in small, medium and large broiler poultry
units respectively.

2.2 Costs, returns and profitability in broiler production.

Joshi (1989) conducted study on economics of poultry

farming in Ratnagiri district. He reported that the total cost for
raising 100 broilers was Rs.2600.01 and Rs. 2614.01 for small and
large group respectively. The total variable cost contributed 75.93
per cent and 73.69 per cent respectively for small and large size
farm where as fixed cost contributed 24.07 per cent and 26.31 per
cent respectively. The overall cost of production per 100 birds was
2606.99.Feed cost contributed highest 41 per cent followed by
chick cost 23.08 per cent for broiler over all group.Net returns per
100 birds were Rs.2660.93, Rs.2740.50 for small and large group,
respectively whereas at overall level it was Rs. 2700.71.

Kumar et al. (1995) conducted study on economics of broiler

farms in Jind district. Thus reported that production cost per bird

was Rs.38.65 and net income per bird was Rs.10.50.

Mahadik (1997) conducted study on economics of poultry

farming in Raigad district revealed that the total cost was highest
in layer farms as compared to those on broiler farms. The total cost

for layer farms was Rs.32,844.44, while the gross income was

Rs.37,630.63, showing net returns of Rs.4,789.19 per 100 birds.

However, the total cost of broiler farms was Rs. 4,657.46 while, the
gross income was Rs.5,613.134, showing net returns of Rs. 955.67
per 100 birds.

Shanmugham et al.(1997) conducted study on broiler

production in Kamarajar district of Tamil Nadu revealed that the
total cost of broiler production per bird was Rs.22.18, out of which
variable and fixed cost constituted 93.24 per cent and 6.76 per
cent, respectively. Cost of feed alone, accounted for more than 50
per cent of the total cost, followed by the cost of chicks viz, about
25 per cent.

Verma and Singh (1997) studied the cost and return

structure in layer farming, in Haldwani area of Nainital district.
Thus observed that the total cost per bird was Rs.381.59 and the
fixed and variable costs contributed 7.54 and 94.45 per cent,
respectively. The average per bird gross returns was 399.49.
Income from the sale of eggs, spent hens, manures and empty
gunny bags contributed 87.33, 10.87, 0.84 and 0.83 per cent,
respectively to the total returns.

Bhandari (2001) studied economic analysis of poultry

farming in Ratnagiri district (M.S). He found that, per bird capital
investment was highest in small group (up to 500 birds) than the
large group (above 500 birds). Per bird capital investment was
Rs.33.03 on small and Rs.18.59 on large groups respectively.

Barrier et al. (2003) estimated economics of broiler

production at Miango, Plateau State, Nigeria. The results showed
that the enterprise incurred an average total variable cost of N620,
6333.31 out of which feeding cost, day old chicks (stock) and
mortality cost represents 58.1 per cent, 19.13 per cent and 9.64
per cent of the total cost of production, respectively. Total revenue
within the period was estimated to be N763, Rs.969.44 which was
mainly generated from the sales of broiler birds. The gross margin
was found to be N143, Rs.334.13 with N0.23 as the returns per
naira invested in the enterprise. Thus the broiler production was a
profitable venture in the study area.

Shrivastava et al. (2003) conducted study on commercial

production of broilers in Jabalpur district of Madhya Pradesh
concluded that the per bird cost of production was about Rs.40 on
all the farms irrespective of size of farms. Out of the total cost, the
feed cost alone accounted for more than 50 per cent (51.41 % on
small 53.55 % on medium, 52.68 % on large own farms and 52.50
% on large farms respectively). The bird cost accounted for more
than 33 per cent. Together these two items accounted for more
than 85 per cent of the total cost leaving the balance of 15 per cent
as other operational costs.

Shinde et al. (2003) conducted study on economics of goat

rearing in Rajasthan. Thus concluded that the cost of animal
constituted 80.64 per cent and equipment 3.87 per cent of total
investments in nitration of the goat rearing ventures. The income
from sale of milk, surplus animals and manure constituted 50.64,
39.42 and 9.92 per cent respectively, of total receipts. The gross
income obtained per goat per year was Rs. 911.30 and net income
per goat per year was Rs.277.85. The B: C ratio was found to be
1:1.34. It was concluded that goat rearing is reasonably
remunerative providing 1.34 against every rupee invested.

Jitender et al. (2005) studied the costs and returns from

sheep goat farming in Mahendergarh and Gurgaon district of
Haryana, observed that the annual average total cost per sheep
farm was worked out to be Rs.26,674 while on goat farm it was
Rs.12,169.The average net returns from sheep and goat rearing
were 4, 983 and 16,605 Rs. Respectively.

Shaikh and Zala.(2005).conducted study on the production

performance of different sizes of broiler farms by collecting data
from 60 broiler producers of Anand district. Thus observed that the
average cost of production per bird was,64 and per kilogram live
weight of broiler as 32.The variable cost and fixed cost constitute
84.5 per cent and 15.5 per cent of total cost, respectively. The
major cost components have been found as feed cost (58.6%),
chick cost (21.5%) and depreciation on buildings (10.7%).

Ganeshkumar and Rai (2006) analyzed the cost and returns

structure of poultry in Andaman Nicobar Islands. They observed
that the cost involved in broiler poultry farms were
Rs.20,653,Rs.59,261, and Rs.94,612 Rs, for small (300 birds),
medium (900 birds) and large (1500 birds) unit respectively.
Similarly the net returns obtained were Rs.2,507, Rs.10,279 and
Rs.21,188 respectively .They inferred that the profit increased as
the size of unit increased.

Langade (2009) conducted study on economic analysis of

Emu farming in Marathwada region of Maharashtra State.
Concluded that the average fixed capital investment for Emu farm
was Rs.269447.82. The share of Emu bird pairs was 79.09
percent, land 13.12 per cent, Emu farm establishment cost 7.35
per cent equipment and appliance cost 0.44 per cent.

Raut (2014) conducted study on „Economics of production

and disposal of broiler poultry birds in Raigad district.‟ He revealed
that the gross return obtained from different size groups were
Rs.15,90,276, Rs.3180338 and Rs.65,79,208 from small, medium
and large groups respectively whereas at overall level was
Rs.33,27,833.The per bird gross returns obtained from different
size groups were Rs.140,Rs.141 and Rs.142 from small, medium
and large groups respectively whereas at overall level it was
Rs.141.The benefit ratios in different size groups was 1.14,1.21
and 1.26 for small, medium large groups respectively and at overall
level was 1.22.

2.3 Resource use efficiency of broiler production.

Thakare (1984) studied functional relationship between input

and output in egg and broiler production by fixing Cobb-Douglas
type production function and concluded that feed, labour and
medicine inputs were important variables influencing egg output
positively and significantly in Raigad district. From the estimated
production function for broiler production, labour days on size
groups of farms and feed on small and all farms pulled together
were found to be influencing on live-weight of broiler positively and
significantly.

Joshi (1989) fitted the Cobb-Douglas production function and

concluded that independent variables taken together explained
91.58 per variability in egg production which was carried out in
Ratnagiri district. However, the production elasticity of only feed as
a independent variable was the highest i.e.1.0558 and even
significant at 5 per cent level of significance. The production
elasticities of medicines and miscellaneous cost items were
negative indicating excess use of these inputs in egg production.
The sum of production elasticities was observed to be 0.88
indicating diminishing returns to scale in egg production. On
overall broiler farms, selected independent variables explained
99.42 per cent of variability in dependent variable, live-weight of
broiler per farm. In the estimated production function, production
elasticities of number of birds were highest among all variables and
were significant at 1.0 per cent probability level. The production
elasticities of other inputs were non-significant. However,
regression coefficient of human labour days and miscellaneous
cost items were negative.

Mahadik (1997) in his study on economics of poultry farming

in Raigad district (M.S.), observed that on overall broiler farms,
marginal value product per bird was maximum and positive,
followed by fixed costs. The marginal value product of variable cost
was about zero and labour cost was negative, indicating
reallocation of funds. It was also observed that ratio of marginal
value product to factor cost at overall level (broiler) for number of
birds was more than unity (2.73) indicating scope for extension in
the size of poultry farms.

Etuk et al. (2007) estimated broiler production function

based on data obtained from broiler enterprises around the
Calabar municipality of Cross River State, South Eastern Nigeria.
The data were analyzed using the mean difference model and
ordinary least square regressions methods to estimate linear,
double log, exponential and semi-log functions. The linear model
provided the lead equations for the first four and second four
weeks, while the double log model provided the lead equations for
entire eight weeks of rearing broilers. The study showed that mean
feed intake per bird, body mass gain and mortality rate of birds in
surveyed area differed (P<0.05)significantly between the first and
second four weeks of the rearing periods. The models revealed that
97, 92 and 98% of total variations in broiler mass gain were
selected explanatory variables during the study periods. In
addition, feed intake and floor space affected (P<0.05) mass gain
positively, while the mortality rate had negative effect. The M.V.P.
is more than cost of 1 kg. of feed during study period.
 Taru et al. (2010) examined the economics of broiler
production in Meme Division of Cameroon. The specific objectives
of the research were to determine the efficiency of resource use in
broiler production. Primary data were collected from a sample of
116 broiler farmers using a multi-stage random sampling method.
The data were analyzed using regression model. Marginal analysis
of input shows that the farmers were inefficient in their production
practices as indicated by the ratio of marginal value product (MVP)
and marginal factor cost (MFC). The ratio revealed the over
utilization of chicks, feed and labour. Major problems facing broiler
producers were low market prices, high cost of feed, veterinary
services, transportation, lack of access to credit and extension
services.

Vincent et al. (2010) studied the resource use efficiency,

optimum production levels, production system of small scale
farmers in Bureti district of Kenya. Primary data were obtained
using a set of structured questionnaires from 300 representative
farmers drawn from the study area using cross-sectional sampling
techniques. Data were analyzed by Cobb-Douglas production
function. The results showed that there sources used in poultry
production were underutilized while others were over utilized. The
efficiency indicators for poultry feeds (0.0603) showed that poultry
feeds were inefficiently used. Labour efficiency indicator (-0.091)
showed that farmers were not only grossly inefficient in the use of
the resource but also over utilized it while the efficiency indicator
(60.86) for poultry equipment implied the resource was inefficiently
utilized. It is recommended that farmers should use inputs more
efficiently (particularly feeds which were being inefficiently utilized)
by reducing their levels of employment.
 Ukwuaba and Inoni (2012) examined resource use-efficiency
among small holder broiler farmers in Oshimili North Local
Government Area of Delta state, Nigeria. Primary data collected
with structured questionnaire from randomly selected 100
respondents. The result revealed that small holder broiler farming
was profitable in study area. Feed cost was dominant consisting
about 35.05 per cent of total cost and 37.70 per cent of total
variable cost of production. Labour and day old chicks had inverse
relationship with broiler output with medication though not
significant and quantity of feed had positive influence on broiler
output.

2.4 Problems in broiler production and disposal:

Mahadik (1997) conducted study on economics of poultry

farming in Raigad district, found that the major problem of layer
poultry farmers in the district was high prices of feed and
fluctuations in the prices of eggs, which were reported by 75 per
cent poultry owners. Broiler owners reported that high prices of
feed and incidence of diseases were the major problems, coming to
nearly 77.78 per cent.

Venkatasubramaniam (1998) in his study on training needs

and constraints perceived by commercial poultry farmers (144), in
Tamil Nadu state, noted that high feed cost (84.60 %), lack of
remunerative egg prices (78 %), disease outbreak (74%), high chick
price (65 %) and high operational cost (60.62%) were the major
constraints faced by the poultry farmers.

Mane (1999) in his study on constraints analysis of poultry

farming in Raigad District of Maharashtra, observed that the
failure in getting information regarding fluctuation in sale prices
(96.66 %), high cost of veterinary aids (85 %),high cost of chicks
(86.66 %), high cost of poultry feeds (85 %), fluctuation in demand
(75%), lack of knowledge about feed formulations (73.33 %),
complex procedure of bank finance (60%), high cost of transport
(55%), non-availability of market near vicinity (58.33 %), mortality
of birds due to climate change (43.33 %), non-availability of skilled
labours (38.33%) and non-availability of immediate credit facilities
(38%) were the major constraints faced by the poultry farmers from
the study area.

Anonymous (2001) conducted study on poultry industry in

India observed that the feed cost accounted for more than 70 per
cent of the total cost, in India. A recently notified hike in the
import duty on corn (maize in India), one of major ingredients of
feed, is likely to prove problematic for Indian poultry farmers.
Poultry industry in India was still unorganized. Periodic and
apparently cyclical gluts in broiler supply regularly contribute to
depressed market conditions that have led to the exit of many
small and inefficient players.

Moreki (2001) conducted study on investigate marketing

constraints in small-scale broiler production in 13 centres of
Botswana, Turkey. The 47 per cent of the famers said halaal was a
major constraint to market access. Other constraints included low
prices offered by chain stores, lack of slaughter facilities, high feed
cost, and high cost of veterinary drugs, high chick mortality, high
utility costs, lack of services and lack of refrigerated transport.
Similarly, 47 per cent of the traders said they purchased only
halaal meat.

Singh et al. (2006) studied the socio economic conditions of

sheep and goat owners and the constraints in its rearing in
Himachal Pradesh during 2001-02. The major problem was poor
veterinary facility in the study area. They also reported that less
price for live animal and wool, transportation problem, wild animal
attack, high mortality rate (15-25%) were their major problems.

Anwar et al. (2007) conducted study on specific topographic

and soil conditions of the Pothwar Region of Punjab observed that
the broiler industry an extremely important as it provided
sufficient livelihood and employment to the rural masses. The
study revealed that irregular marketing practices posed a serious
threat to the broiler industry in the region. Profitability analysis
revealed that in winter season farmers‟ net loss was 10312 per
thousand birds and in summer season net losses was 3413. This
situation clearly indicated that broiler farming becoming
unprofitable business in the region; it needs immediate attention of
the stakeholders.

Ahmad et al. (2008) conducted study on primary data

collected from 60 poultry farms in Mirpur district, Azad Jammu &
Kashmir (AJK). Results indicate that this business is adopted as
major source of income; however, most of the commercial poultry
farms have been closed due to lesser profits and even heavy losses
during last few years. Majority of poultry farms (83 %) were small
farms and the farmers were forced to rely on non-institutional
source of credit. Seasonal and cyclical price fluctuations in input
and output were found higher. Poultry producers were major
stakeholders having no role in price fixation. The estimated input
output ratio of poultry production was 1:1.12. The per rupee
return did not look promising for investors of this sector especially
in case of small farmers who were unable to reap the benefit of
economy of scale.

Landge (2009) conducted study on economic analysis of Emu

farming in Marathwada region of Maharashtra state and reported
that majority of the farmers were (85.71%) reported that low prices
for Emu product, lack of organized market (71.43%), high cost of
Emu bird feed (42.86%), carelessness of medicinal services from
Emu farmers (14.29 %) were the major problems in Emu farming.

Raut (2014) conducted study on „Economics of production

and disposal of broiler poultry birds in Raigad district.‟ He revealed
that the major problems faced by broiler farmers in Raigad district
at overall level was high cost feed (85.00%) followed by high cost of
chicks (76.67%),fluctuation in market prices (76.67%), non-
availability of transport and marketing facility (56.67%),non-
availability of feed in time (46.47%).