Financial Feasibility of Broiler Production in Case of Non Contract and Contract Farms

Abstract

An attempt was made to explore the financial feasibility of broiler poultry production in Chikkaballapur district of Karnataka. The objective of the study was to work out cost and returns in broiler production and to assess the financial feasibility of broiler production. The data was collected from 90 broiler farms consists of both non contract and contract farms. In the study area, the average fixed capital investment made per bird was ` 213.74 and ` 151.51 in non contract and contract farms respectively. Cost of production and net returns per bird were ` 123.16 and ` 18.44 respectively in case of non contract farms against ` 11.02 and ` 4.62 in contract farms. In the study area, number of birds to be raised annually to cover the cost of production in non contract and contract farms was found to be 13118 and 26692. The feasibility study shows that, the investment in non contract broiler farms was economically feasible with NPV of ` 2892260, BC ratio of 1.14 and IRR 49.53 per cent indicating more returns per rupee invested. Conversely, investment in contract broiler farms was just marginally feasible with NPV of ` 28928, BC Ratio of 1.41 and IRR 16.39 percent. Highlights m Dissimilar operation pattern was found between non contract and contract farms, as farm owners were compensated only with rearing charges and take away major portion of the returns. m Non contract farms were found to be more financially feasible than contract farms.

Supply Chain Performance Measurement for One Maintenance Cycle of Broiler Plasma Farm

“…When compared with integrated farming, unintegrated broiler raising is relatively sensitive to broiler price decreases and DOC price increases (Firdaus & Komalasari, 2010). Although (Kumar, 2019) show that non-contract farms were found to be more financially feasible than contract farms, Plasma Farming is one type of partnership pattern in animal husbandry which is currently the most popular (Bojnec & Latruffe, 2008) To be a partner of the core company is not easy, breeders must have performance in accordance with the targets set by the core company because it will affect the profits obtained by the core company. To remain a partner of the core company, of course the plasma farm must have a good performance, although from the core company the key success parameters of a broiler farm include mortality (mortality rate), FCR (Feed Consumption Conversion Ratio), length of maintenance, rest period, harvest weight, and number of periods per year (Baron & Frattaroli, 2016).…”

Farming Sustainability: A Sensitivity Analysis

“…This population development is indicated by the increasing interest of breeders in following a partnership pattern. [2] Through a partnership scheme, breeders are guaranteed the availability of production facilities in various business scales, both large and small [3]. This cooperation model also provides certainty for the selling price of chickens.…”