Profitability of Broiler Firms in Tehsil Shabqada (Charsadda): A Domestic Study for Agricutural Sector

Abstract

The purpose of this study is to determine the cost, return and profitability of broiler production in areas pf charsadda district. It is based on primary data which were collected through persona interview method in order to minimize the errors and biasedness in the data since most of the entrepreneurs were illiterate or low level of education. Data were collected from 30 broiler rearing firms by using random sampling. Statistical techniques, production function techniques, tables and graphs were used for the analysis of data. This study estimated average cost of raising broiler to be RS 521459.22 per farm (farm consist on the average of 2195 chickens) per session. Total variable cost per farm (2195) chickens per session was RS 307180. The total fixed cost was Rs 205416.66 per 2195chickens per session. Evidence of the study shows that gross return from the firm are Rs 682525.33 per 2195 no.of chickens per session. The calculated net return per session was Rs 47108.67. The findings revealed that broiler production was profitable enterprise. Cobb Douglas production function was also applied to find the individual effect of the factors of production of broiler. It was also observed that most of the variables had significant impact on the broiler production. The study also identified some problems in the study area of broiler production. Finally based on the finding of the study, some recommendations were made for the development of the broiler production.