An Economic Analysis of Broiler Production in Bhagalpur District of Bihar, India

Abstract

The present study was conducted to determine the cost of production, different costs, and the benefit-cost ratio incurred in broiler production in different farm size groups. The study was undertaken through a benchmark survey method by contacting 70 broiler farms, representing small, medium, and large farms. The average number of birds was 280 on small farms, 780 on medium farms, and 2970 on large farms. It was evident that the highest percentage was found on large farms, showing a strong correlation with farm size. Production costs per quintal reached their peak at Rs. 4426.00 in small farms, while large farms exhibited the lowest cost at Rs. 3606.00 per quintal. Medium-sized farms reported a cost of Rs. 3993.60 per quintal. On average, across the sample farms, the production cost per quintal stood at Rs. 4008.53. These figures underscore an inverse relationship between farm size and production costs per quintal, with smaller farms incurring higher costs per quintal compared to larger operations. The B.C. ratios were 1:1.44, 1:1.60, 1:1.77, and 1:1.60 for the small, medium, large, and sample averages, respectively. When all the inputs are combined, small, medium, and large farms are showing rising returns to scale.