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Production of Sonali Chicken in Selected Areas of Gazipur District - an Economic Study

MT Uddin
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

SJ Mitu
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

IA Begum
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

Abstract/ Executive Summary:

This study attempts to conduct an economic analysis and resource use efficiency for Sonali chicken production covering five villages of Sadar Upazila under Gazipur district. Primary data were collected from 60 purposively selected Sonali chicken rearers for this study. Descriptive and functional analyses were employed to achieve the objectives of the study. The major findings of the study are that total cost for 1000 birds were estimated at Tk. 120613 per batch. Average gross margin and average net returns for 1000 birds was calculated at Tk. 57240 and Tk. 52059 per batch. An average gross return for 1000 birds was estimated at Tk. 172672 per batch. Benefit-cost ratio was found 1.4 for Sonali chicken production. Labour, veterinary and medicine and electricity cost had positive and significant impact on Sonali chicken production. Resource use efficiency was calculated by the ratio of marginal value product and marginal factor cost. Finally, the study also identified some of the major problems associated with Sonali chicken farming and suggested some possible steps for overcoming these problems.

Keywords: Benefit cost ratio, Cobb-Douglas production function, Sonali chicken

Location: Gazipur Sadar Upazila under Gazipur district, Bangladesh

Start Date:

End Date:

Program Area: Animal Health and Management

Non-commodity: Income generation, Income generation

Objectives:

The overall objective of the study is to estimate the profitability of Sonali chicken production and the efficiency of resources used for such production.

Methodology:

Study areas were selected from Gazipur Sadar Upazila under Gazipur district. A purposive sampling technique was followed in the study. A total of 60 samples were interviewed for the collection of necessary data. A structured questionnaire was prepared for that purpose. Primary data were collected from the Sonali chicken farm owners by applying field survey method. Secondary data and information were collected from various journals, bulletins, government publications as well as from different organizations such as Bangladesh Bureau of Statistics, Bangladesh Economic Review, etc. For analyzing the data, a combination of tabular and statistical techniques were used to achieve the objectives and to get meaningful results. In the study, the following equation was used to calculate profitability of Sonali chicken farming: Π = (P_mQ_m + P₁Q₁) – (∑(P_xi. X_i) +TFC) where, Π = Profit per Sonali chicken farm (Tk./batch); P_m = Per unit price of output (Tk.); Q_m = Number/Quantity of output; P₁ = Per unit price of used litter and excreta (sack/per batch); Q₂= Quantity of waste litter and excreta (sack/per batch); P_xi = Per unit price of the variables inputs; X_i = Number/ Quantity of ith inputs; i = (1, 2, 3….n); and TFC = Total fixed cost. To explore the input-output relationship of Sonali chicken production, the following Cobb-Douglas production function models was used: Y = a X₁ b₁ X₂ b₂ X3 b₃ X₄ b₄ X₅ b₅ X₆ b₆ U The above function was linearized as follows: ln Y= ln a + b₁ lnX₁ + b₂ lnX₂ + b₃ lnX₃ + b₄ lnX₄ + b₅ lnX₅ + b₆ lnX₆ + U_i. where, Y = Gross return from Sonali chicken production (Tk.); X₁ = Cost of day-old-chick (Tk.); X₂ = Cost of feed (Tk.); X₃ = Labour cost (Tk.); X₄ = Medicine and veterinary cost (Tk.); X₅ = Electricity cost (Tk.); X₆ = Litter cost (Tk.); b₁- b₆ = Coefficients of the relevant variables; ln = Natural logarithm; U_i = Disturbance term; and a = Intercept. Moreover, the MVP and the MFC comparison was done to measure the efficiency or inefficiency of the resources used in Sonali chicken production. Since six variables of the regression model were measured in monetary value, the slope of coefficients of those explanatory variables in the function represented the MVPs which were calculated by multiplying the production coefficient of given resources with the ratio of geometric mean (GM) of the given resources, i.e., In Y= In a+ b_i In X_i, (dy / dXi) = bi (Y/X_i). Therefore, MVP (Xi) = bi Y (GM) / Yi (GM), where, Y = Mean of gross return (geometric mean); X_i = Mean of ith ariable input (geometric mean); i = 1, 2 , 3, 4, 5 and 6; GM = Geometric mean; and dy/dx = Slope of production function as well as MVP of input.

Source of Information: Bang. J. Anim. Sci. 2014. 43 (1): 56-61

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Sonali chicken farming on commercial basis is a popular endeavor in Bangladesh. The gross margin, net return and BCR of Sonali birds indicated that Sonali chicken farming is a profitable venture. Cobb-Douglas production function was estimated for the study to determine the effects of inputs on Sonali chicken production. The production function involved the inputs of feed cost, day-old-chick cost, labour cost, veterinary and medicine cost, electricity cost and litter cost. The coefficient of veterinary and medicine cost, electricity cost and labour cost were significant for different levels of degrees of freedom. Regarding resource use efficiency, the ratios of MVP and MFC of day-old-chick cost, feed cost, veterinary and medicine cost, electricity cost, labour cost and litter cost were greater than unity. The study identified some problems and constraints associated with Sonali chicken production and some solutions of these problems were given for improving the productivity and sustainability of Sonali chicken production.

Knowledge Management: Journal