Economics of Layer Poultry Production in West Godavari District of Andhra Pradesh, India

Abstract

The study aims to analyze the economics and profitability of layer poultry farming in West Godavari district of Andhra Pradesh. The data was collected from three small, eleven medium and sixteen large layer poultry farms using purposive random sampling. A pretested questionnaire was used to collect data from poultry farmers. The economic analysis reveals a positive net present value and benefit- cost ratio greater than one for small, medium and large layer poultry farms, indicating economic viability. The internal rate of return for small firms is 39.15 per cent, while medium firms exhibit 72.07 per cent and large firms exhibit 78.03 per cent indicating substantial profitability in layer poultry units. Based on NPV, BCR and IRR, large layer farms were most profitable followed by medium and small layer farms. A layer produces a minimum of 22, 21 and 20 eggs in small, medium and large farms, respectively. The margin of safety stood at 277.51, 279.80 and 283.19 for small, medium and large farms, respectively. The higher margin of safety is on large farms over medium and small farms. The study revealed that poultry layer farming is a profitable business in West Godavari district. However, challenges such as adverse climatic conditions affecting birds with attack of viral diseases and high cost of inputs are major production constraints. High price fluctuations and lack of co-operating marketing facilities are major marketing constraints.