Economic Performance and Production Constraints of Layer Farming in Sylhet District, Bangladesh

Abstract

Layer farming is an important component of Bangladesh’s poultry sector, contributing to farm income, employment, and the supply of animal protein. However, profitability, resource-use efficiency, and production constraints remain important concerns. This study assessed profitability, factors affecting gross returns, resource-use efficiency, and the major constraints of layer farming in Sylhet District, Bangladesh. A total of 60-layer farms was selected from six villages in two upazilas of Sylhet District using simple random sampling. Primary data were collected through face-to-face interviews from July to September 2025 using a semi-structured interview schedule. Tabular and descriptive analyses were used to assess costs, returns, and profitability. A Cobb-Douglas production function was estimated to examine the relationship between input expenditures and gross returns. Resource-use efficiency was assessed using the marginal value product (MVP) to marginal factor cost (MFC) ratio, while constraints were assessed using a Constraint Facing Index (CFI). Layer farming was economically profitable, with an average gross return of Tk. 2,214,060, a net return of Tk. 478,045, and a benefit-cost ratio of 1.27 per batch per 1,000 birds. The Cobb-Douglas model explained 80% of the variation in gross returns (adjusted R² = 0.80) and indicated decreasing returns to scale (0.952). Veterinary and electricity expenditures had positive and statistically significant effects on gross returns, whereas pullet, feed, labor, and litter expenditures were not statistically significant. Feed, veterinary, and electricity expenditures were underutilized, while labor expenditure was overutilized. Disease outbreaks, lack of capital, and high pullet prices were the major constraints. Overall, layer farming was profitable, but improved resource allocation and management are needed. Strengthening disease prevention and veterinary services, improving access to capital, and addressing high pullet prices could enhance the profitability and sustainability of layer farming in the study area.