COST OF
PRODUCTION, GROSS RETURN AND NET PROFIT IN COMMERCIAL EGG PRODUCTION
M. Farooq,
Zahoor-ul-Haq1, M.A. Mian, F.R. Durrani and M. Syed
Faculty
of Animal Husbandry and Veterinary Sciences; 1Department of
Agricultural Economics, NWFP Agricultural University, Peshawar, Pakistan
Abstract
The
present study was carried out in Chakwal, Pakistan by collecting data from
randomly selected 109 flocks to investigate cost of production, gross return and
net profit per layer. Majority of the buildings in the study area were rented
therefore, rent per layer was added to the total cost of production instead of
depreciation on building and equipments. Overall total cost of production, gross
return and net profit per layer was Rs. 393.88 ± 5.36, 432.14 ± 8.01 and 38.26 ±
6.66, respectively. Rate of return over the invested capital was 27%. Mean feed
cost per layer was Rs. 302.23 ± 5.01, including Rs. 10.27 ± 0.24, 29.19 ± 0.42
and 262.77 ± 5.08 for starter, grower and layer ration, respectively. Feed cost
was the major component contributing 76.73% to the total cost of production.
Average cost of labor, day-old chick, building rent, vaccination, therapy,
miscellaneous item, electricity, bedding material and transportation was Rs.
19.90 ± 0.45, 19.75 ± 0.05, 16.25 ± 0.26, 12.80 ± 0.10, 10.90 ± 2.32, 4.35 ±
0.09, 3.15 ± 0.07, 2.65 ± 0.09 and 1.90 ± 0.08, respectively, contributing 5.05,
5.01, 4.13, 3.25, 2.77, 1.10, 0.80, 0.67 and 0.48 % to the total cost of
production. Gross return from the sale of marketable eggs, culled eggs,
spent/culled bird, empty bags and manure was Rs. 388.84 ± 7.91, 3.85 ± 0.01,
35.80 ± 0.23, 2.20 ± 0.04 and 1.45 ± 0.01, respectively, contributing 89.98,
0.89, 8.28, 0.51 and 0.34% to the total return. Determining the effect of
different parameters on the cost of production and net profit, large flocks,
Hisex strain, brood-grow and lay system of rearing, good hygienic conditions of
the farm, normal stocking rate and cage system of housing wee found to give
maximum gross return as well as net profit.
Keywords:
Cost of production, gross return, housing and rearing system, hygiene, net
profit.