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Nutritional Compositions and Sensitivity Analysis of Poultry Feed Mills in Bangladesh Through Experimental Economics Approach

Azadul Haque M
Graduate School of Life and Environment Sciences, University of Tsukuba, Japan

Sadika Haque
Department of Agricultural Economics, Bangladesh Agriculture University, Bangladesh

Mohiuddin M
Department of Animal Nutrition, Bangladesh Agriculture University, Bangladesh

Shahnaz Akter
Department of Economics, Bangladesh Water Development Board (BWDB), Bangladesh

Md Akteruzzaman
Department of Agricultural Economics, Bangladesh Agriculture University, Bangladesh

Tofael Ahamed
Graduate School of Life and Environment Sciences, University of Tsukuba, Japan

Hashem MA
Department of Animal Science, Bangladesh Agriculture University, Bangladesh

Md Monirul Islam
Assistant Professor
Graduate School of Life and Environment Sciences, University of Tsukuba, Japan

Abstract/ Executive Summary:

This research aimed at analyzing of nutritional compositions and resource use efficiency of poultry feeds covering Dhaka, Gazipur, Narsingdi, Kishoreganj and Mymensingh districts in Bangladesh. A total of 30 feed mills which categorized as high, medium and low quality on the basis of feed conversion ratio were selected purposively. The feed sample were collected during March 2013 to March 2014 and analysis by using AOAC, 2000 methods and KII. It is evident that a compound broiler feed of different feed manufacturers has differed between analytical value (AV) means laboratory test result and MV of various nutritional composition of ME value (energy). There is much difference in CP content which was lower than requirements and ME content was higher than requirements. The analytical value of EE (ether extract) was higher than manufacturer's value which influences on human health. The results of sensitivity analyses clearly indicate that poultry feed mills were price sensitive.

Keywords: Broiler production, Poultry feeds, Nutritional compositions, Financial profitability, Sensitivity analysis

Location: Different locations of Dhaka, Gazipur, Narsingdi, Mymensingh and Kishoreganj districts, Bangladesh

Start Date: 00-03-2013

End Date: 00-03-2014

Program Area: Socio-economic and Policy

Commodity: Poultry, Feed

Objectives:

The specific objectives are as follows: a. The nutritional composition determined by using the method of AOAC. b. The nutritional value obtained from AOAC was compared with written in company supplying over the bags. c. The objective function = Nutrient requirement was maximized, and cost of the raw ingredient was minimized.

Methodology:

Sixty compound feed samples (30 broiler starter feeds and 30 broiler finisher feeds) of 30 different feed manufacturers were collected proportionately from different locations of Dhaka, Gazipur, Narsingdi, Mymensingh and Kishoreganj districts. The fieldwork conducted with feed miller, dealer, different sizes of poultry farm owners and farmers. A multi-stage stratified sampling was applied in this study. The feed mills categorized on the basis of feed conversion ratio (FCR) that is high-quality feed mills (FCR; below 1.5 to below 1.6), medium quality feed mills (FCR: 1.6 up to below 1.7) and low-quality feed mills (FCR: 1.7 up). The selected commercial farms were categorized by flock size small scale: < 1000 birds, medium scale: 1001-2000 birds and large scale: above 2000 birds. In conformity with the objectives of the study, a structured questionnaire developed for collecting relevant primary data from the poultry feed miller, dealer and sub-dealer and farmers. The present study covered approximately from March 2013 to December 2014. It has been found that CP (crude protein) and energy level written over the bag but some time industries people are exploiting to farmers by using unknown growth stimulating substances to increase for FCR value: a. The nutritional composition determined by using the method of AOAC [15]. b. The nutritional value obtained from AOAC was compared with written in company supplying over the bags. c. The objective function = Nutrient requirement was maximized, and cost of the raw ingredient was minimized. The quality of compound feeds depends on the storage time also. The broiler feed samples were collected within 10-15 days after manufacturing of feeds at feed mills from broiler farmers. After collection, feed samples were stored in refrigerator during chemical analysis at animal nutrition laboratory. During the collection of samples, feed bags and nutrient specification, expired date on bags of different feed sample were carefully observed and recorded. Chemical analysis (proximate analysis The proximate components and energy content of the collected feed samples were tested at Animal Nutrition Laboratory, Bangladesh Agricultural University, Mymensingh (Appendix 1). The chemical composition (dry matter, crude protein, crude fibre, ether extract and ash) was determined by the procedure of AOAC. The ME content of the feed samples was determined by using the values of crude fiber (CF), ether extract (EE), and ash according to the method of Wiseman. The formula is ME Kcal kg / 3951 + 54.4 EE - 88.7 CF - 40.8 Ash, Where, CP is the crude protein (in percentage), EE is the ether extract (in percentage) and Ash is the Ash (in percentage). There are a. Benefit-Cost Ratio (BCR). b. Net Present Value (NPV). c. Internal Rate of Return (IRR).

Source of Information: Agri Res & Tech: Open Access J 21(2): ARTOAJ.MS.ID.556159 (2019)

Article Link (Online Journal): DOI: 10.19080/ARTOAJ.2019.21.556159

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

It is clear that compound broiler feeds of different feed manufacturers has differed between analytical value and manufacturer value of various nutritional composition of metabolizable energy value. There is much difference in crude protein content and metabolizable energy content. The crude protein was lower than requirements and metabolizable energy was higher than requirements. The analytical value of EE was higher than manufacturer value. Further research is needed to dig down the limit of lowering the protein and increasing the ME value of broiler feeds of manufacturers. Because, the analytical value of EE was higher than manufacturer value which has influence of health hazard. The findings of the study the benefit from high quality feed are higher than medium and low-quality feed. It is evident that the high-quality poultry feed mills were highly profitable comparatively medium and low-quality feed mills considering the real condition. The results of sensitivity analyses clearly indicate that poultry feed mills were price sensitive. If price fall in the market, then they can marginally sustain in the market but if it is more than 5 percent then they will reluctant to operate poultry feed mill. So, we can say, profitability of poultry feed mills appears to be negatively correlated with decrease of poultry feed price in market. If price of raw materials price were increased in the market, then they can marginally sustain in the market but if raw materials price were increased 10 percent then average performance of poultry feed mill for both categorize would be in losing condition. Though some high-quality feed mills could able to incur bank rate but they also not interested to continue their business due to very low return from business. On the other hand, low-quality feed mill stopped producing feed because average BCR of poultry feed mill was less than unity.

Knowledge Management: Journal