Financial and factor demand analysis of broiler production in Bangladesh

Abstract

Financial and factor demand analysis of broiler production has been estimated in this paper using a farm survey data of 210 farmers from four major broiler producing areas (i.e., Dhaka, Rajshahi, Mymensingh and Chittagong) of Bangladesh. Findings showed that broiler farming incurred most of its cost from its operating input, mainly feed. Broiler farming was financially profitable, but the performance of Mymensingh division was comparatively low, arising from a high unit cost of production and low unit price selling than the others. The net return was highest in Dhaka division, while Rajshahi division showed the highest ratio in returns on investment. However, in terms of cost (variable) and net return of broiler farming, no significant difference among the study areas was observed. The value of own price elasticity for feed, chick price, and labour price were negative and inelastic, which were -0.00249, -0.05718, and -0.13101, respectively. Besides, a complementary relationship was found between feed and day-old chick and feed and labour while day-old chick and labour were substitutes. The study also revealed that cross price elasticity was highly inelastic, and changes in the prices of inputs did not result in massive changes in the quantity demanded of other inputs for broiler farming.

Keywords

• Marginal cost
• Input-output ratio
• Translog cost function
• Input-input relation
• Broiler