Impact of management intervention on productive performance and profitability of small-scale broiler farming in Bangladesh

M H Kawsar, S D Chowdhury, S K Raha* and M M Hossain**

Department of Poultry Science,   * Department of Agribusiness and Marketing,   ** Department of Animal Science,
Bangladesh Agricultural University, Mymensingh 2202
mhkawsar73@gmail.com

Abstract

The study was undertaken to determine the productive performance and profitability of small-scale broiler farming at rural households carried out with or without management intervention. For obtaining information from farmers who reared broilers with no scientific intervention, field level primary data were collected by survey from a total of 52 broiler farmers by direct interviewing, of which 30 in Mymensingh, 15 in Sherpur and 7 in Kishoregonj districts of Bangladesh. Among 52 farms 19 small-scale (100-300 birds capacity) farms were considered of which 3 were flocks of 100 birds, 12 were 200 birds and 4 were 300 birds each.  On the basis of the results of the survey and availability of farming inputs of the farmers like housing facilities and farm equipment (eg: feeder, waterer, chick guard), nine interested farmers were randomly selected for experimentation in rural households with scientific intervention. Before commencement of the trial, the farmers were trained on the basic principles of broiler farm operation and procedure of record keeping. Data collected for productive performance, cost of farming and returns were used to determine benefit cost ratios (BCR). Data were statistically analyzed and comparisons of results were made between farms with intervention and those without scientific intervention.

Productive performance indicated no difference among flock sizes with respect to body weight, feed consumption and survivability but FCR improved as the flock size increased. When flocks of similar sizes were maintained at the rural households with intervention, overall FCR was improved than that of without intervention. BCR was found to be widened as the flock size increased and this was true for both with and without intervention. Raising broiler flocks of small sizes (100, 200 and 300 birds) was a losing concern without management intervention but profitability of such farms may be ensured if intervention in terms of scientific knowledge on management aspect is disseminated to the farmers. Analysis of cost and returns showed that cost of farming per bird decreases and return increases as the flock size increases. It was concluded, therefore, that satisfactory productive performance is achievable and profitability may be improved from small scale broiler farming at rural households of the farmers if management intervention is made.

Key words: cost and return, growth, rural households

Introduction

Consumption of protein of animal origin is much lower in Bangladesh than in some other countries of the world. Referring to FAO statistics, Ali and Hossain (2012) pointed out that the per capita consumption of all meat is 14.67kg as against the requirements of 56kg. The per capita poultry meat availability is approximately one-fifth of the consumed meat (3kg) which needs to be increased more than double to satisfy the current demand of 7.67kg ( Begum  et al 2010). These statistics revealed that there exist tremendous opportunities to increase production and therefore commercial poultry sector should be flourished.  Commercial broiler farming has become a promising and dynamic industry with enormous potential for animal protein supply, income generation and poverty reduction (Bhende 2006). Dolberg (2008) stated that 66% of all poultry meat consumption came from commercial broiler sector. Due to short life cycle, low capital investment and quick return, that sector plays a significant role in improving the livelihood of farmers. Many broiler raisers have improved their socio-economic conditions through income generation. A study report on the impact of Smallholder Livestock Development Project (SLDP) in rural community at different rural areas of Bangladesh revealed that the overall socio-economic conditions of the beneficiaries, their egg and meat consumption capability and empowerment opportunities of farmers were considerably increased after the intervention made by SLDP (Alam 1997). Rahman et al (2006) showed that commercial broiler farming provided employment opportunities for unemployed family members, improved socio-economic conditions and increased women empowerment among rural people of Bangladesh.

In view of current scenario in Bangladesh, broiler can play a vital role in meeting the nutritional deficiency of people. But this sector is not in a static position.  According to National Committee for Protection of Poultry Industry in Bangladesh,  there were about 1,14,000 small and medium enterprises (SMEs) in June’2010, 98,000 in December’ 2010 and 74,000 in March 2011 in the country of  which  52% have flock size between 500 and 5000 birds  and the rest were very small with 100-500 birds which were treated as small-scale farms. The profitability of broiler farming is affected by various factors, for example, flock size. The large commercial producers are in a position to overcome problems because of their high investment in this sector. On the other hand, small-scale rural producers, although take up poultry production as a means of self employment to maintain rural livelihood, mostly fail to manage their farms efficiently because of their limited resources, lack of knowledge and very low investment. As a result, their profitability is not in a static condition. Sometimes, they earn profit but at other times they incur loss. A sharp rise in the price of chick and feed and failure to obtain fair price of their produce further aggravate the situation. Besides, some of the farmers are illiterate and they do not have adequate knowledge about the nature of input to use and how to make profitable production. They do not have any financial analysis of their production units although expansion of poultry farming in particular locations should be based on benefit cost ratios (BCR). In addition, the size of flock also affects their management procedure, and consequently their profit. Therefore, the production target and the profitability of their farms vary widely and even some producers incur loss. The government and NGOs always encourage rural farmers for poultry production but the minimum flock size for profitable production is yet to be determined. It is therefore important to generate information on profitability from small-scale broiler units currently in practice without management intervention and for those receiving such intervention. The present study was, therefore, undertaken to determine the productive performance, costs and returns of small-scale broiler farming under field conditions with or without management intervention and to determine minimum flock size to ensure profitability.

Materials and Methods

For obtaining data from farmers who rear broilers with no management intervention, field level primary data were collected from a total of 52 broiler farmers by direct interviewing of which 30 in Mymensingh, 15 in Sherpur and 7 in Kishoregonj districts of Bangladesh. The data were collected using a semi-structured questionnaire during the period from August 2009 to October 2009. Among 52 farms 19 small scale farms were considered of which 3 were 100 flock sizes, 12 were 200 birds and 4 were 300 birds each. Data of small-scale broiler farms of different sizes (F₁=100, F₂=200 and F₃=300 birds) were then classified, compiled, tabulated and statistically analyzed. Results of productive performance and profitability of small-scale broiler farms in three flock sizes (100, 200 and 300) were summarized. On the basis of the results of the survey and availability of farming inputs of the farmers like housing facilities, feeder, waterer, chick guard etc., nine interested farmers were randomly considered to provide management intervention during the course of farm operation under rural condition. Before commencement of the trial at rural households, the farmers were trained on the basic principles of broiler farm operation and procedure of record keeping. Only chicks and record registers were supplied to the farmers. Records were maintained by the farmers from day old to marketing of broilers as per instructions provided to them. During the experimental period, scientific knowledge in terms of technical advice was provided to the farmers on brooding, rearing and management of the flocks, feeding techniques, vaccination program, biosecurity and record keeping. Analysis of data was performed by SAS (SAS 2007) method and comparisons with regard to productivity and profitability were made between farms with and without management intervention.

Results and Discussion

Live performance

Table 1 shows that the highest feed consumption was observed in F₁ group (flock size 100) than that of other two flock sizes who received no intervention. Lowest body weight gain and higher FCR was observed in the same group probably due to wastage of feed. On the other hand, highest body weight was seen in F₁ group when improved management was followed. F₁ group ate more feed but comparatively lower FCR values were observed in F₂ and F₃ in both management, but the difference among the flock sizes was not so great. Whereas lower feed consumption, higher feed utilization resulting in comparatively lower FCR was observed when improved management was practiced. Inefficiency in input use, for example, over supply of feeds leading to some wastage due to their inadequate technical knowledge resulted in a lower productivity when the farmers were deprived of training and management intervention. Average FCR value of the small-scale farms without management intervention was 2.02 (2.24 for F₁, 1.98 for F₂ and 1.85 for F₃) which was close to the earlier report (2.00) of Jaim and Islam (2008) and slightly higher than those of Chand et al (2009) who reported the values to be 1.93 to 1.94. Small-scale broiler operation in Botswana field survey primary data also reported that the inferior feed efficiency values (2.72 kg feed/kg broiler) was result of the poor managerial practices, feed wastage and variable quality of feed (Badubi et al 2004).  

FCR decreased as the size of the flock increased under field condition without intervention and it showed lower trends when intervention was made but the difference between flock sizes was small. It was interesting to note that that following intervention, both feed consumption and FCR decreased more than those observed without intervention. This may have been due to the fact that farmers were trained before start of their farm operation and that necessary advice was provided to them and a follow-up program was practiced. Survivability was found to be satisfactory under both situations probably due to the fact that the farmers were more aware of vaccination. Chand et al (2009) also suggested that profitability is enhanced if farmers are properly trained to improve FCR value thereby reducing production cost and if biosecurity is strengthened to reduce mortality under field condition. Sonaiya (2009) indicated low biosecurity as being one of the technical factors contributing to productivity and profitability of smallholder family poultry. Jaim et al (2008) concluded that feed consumption was lower and efficiency was higher in technically supported farms than that of non-supported farmers. FCR values of scientifically managed farm at field level in the present study were 1.49 to 1.53, approximately similar to the value of 1.6 kg feed /kg weight gain as would be expected for modern broiler strains at ages close to 35 days of rearing under improved management conditions (Anon 2001). It is therefore clear that, satisfactory productive performance is achievable in rural areas if management intervention is strengthened.

Profitability Analyses

Data related to cost and return were evaluated and the results of benefit cost analysis for profit measurement of small-scale broiler farms of three flock sizes are shown in Table 2. 

Table 2 indicates that the cost of raising broiler/bird had a negative relationship with size of the farm. So, larger the flock size, lower the cost of production with or without management intervention as would be expected. BCR also widened with an increase in the size of the flocks in accordance with Islam et al (2010) and this was so in this study in both situations. In case of farms without intervention BCR in F₁ was 0.82, F₂ was 0.90 and F₃ was 0.98 which means that farming was a losing concern whereas intervention increased the profit as the size of the farm increased (Table 2). Begum et al (2009) reported that per broiler net return is more than 1.4 times higher in scientifically managed farm than that of private farm that reared broiler without management intervention. Those results are also in agreement with the result of Badubi et al (2004) who reported that a better-trained class of farmers, who can effectively seek out and process new information and who could keep accurate financial records, earned higher profit. Jaim and Islam (2008) studied the impact of technical intervention on profitability of village based medium-scaled broiler enterprise in Bangladesh. On the basis of comparative profitability analysis between with and without intervention, they concluded that technical intervention can make a significant contribution in alleviating rural poverty by enhancing profitability. In this study, the results showed that total cost/broiler decreased as the flock size increased.  Return/broiler increased with increasing size of the flock when the farms were scientifically managed. But this was not so in rural households in the absence of management intervention. The present study also showed that, as the flock size increased, the BCR also widened indicating the possibility of more return if flock size is further increased. Thus the profitability of boiler flock containing 300 birds is more than those of 100 and 200 flock sizes.  Results synthesized from the data of field survey as well as from field trial with management intervention with similar flock sizes showed similar trends. It seems reasonable to advise the farmers to increase their flock size more than 300 capacity and the farmers are to be trained and/or provided with technical support to earn profits. Regular monitoring of management practices of the small farmers may be an added advantage to augment production and increase profitability.

Conclusion

• The productive performances and the profitability of independent small-scale broiler farming of 300 flock size or less seems to be losing concern in the absence of improved management intervention in farming practices. It is therefore concluded that training to the small-scale broiler farmers, introduction of improved management practices, regular monitoring with adequate poultry extension services are the key elements to get satisfactory result from broiler farming. These might enhance better productive performance as well as maximize profitability. However, studies on similar nature with flock sizes of more than 300 birds would be helpful to generate additional information.

Acknowledgements

The authors are grateful to Dr. M A Hashem, Professor, Department of Animal Science and Dr. Professor Shankar Majumder, Department of Statistics, Bangladesh Agricultural University, Mymensingh, Bangladesh, for helping with statistical advice. Financial support was extended by the Bangladesh Livestock Research Institute, Savar, Dhaka 1341.

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Received 23 February 2013; Accepted 21 March 2013; Published 1 May 2013

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