A Study to Identify the Factors Affecting the profitability of Contract Broiler Chicken Producers in the Poultry Belt of Sri Lanka

Abstract

This study investigated the factors affecting the profitability of contract broiler chicken farmers in the poultry belt in Sri Lanka. One hundred contract (Buy Back) broiler producers in Kurunegala, Puttalam, Kalutara districts were randomly selected. The cost and return analysis of different sizes of out grower broiler producers were analyzed using the   profit function approach Quantitative variables such as feed conversion ratio (FCR), mortality (% per flock), input quantity and average body weight (kg/bird), involvement in broiler farming (hours/month) were used in the analysis. The investigated farmers were receiving a profit of 73.73 ± 3.54 Rs./bird.  The other parameters were; average body weight of 1.9982 ± 0.035 kg/bird, flock mortality of 3.564 ± 0.324 %, and the FCR of 1.8038 ± 0.017. Regression analysis revealed that most important factors significantly (p-0.05) affecting profit in this study were the feed conversion ratio, input quantity, body weight and flock mortality. The contracting company provided inputs such as day old chicks (DOC), Transport, and incentives such as transport incentives, bird return incentives to improve the productivity, extension services to improve quality of production. FCR and Body weight are depending on the quality of feed and environmental conditions. Therefore, it is advisable to increase the input quantity to get optimum profits and to reduce the operational costs.