Economies of scale in broiler farming in Khyber Pakhtunkhwa

The present study was launched in four districts of Khyber Pakhtunkhwa namely Peshawar, Charsadda, Swabi and Nowshera during November/December, 2009. Forty one poultry farmers were interviewed out of 41 sample farms, 27 were small and 7 each were medium and large respectively. Farm size was randomly classified on the basis of number of poultry birds per flock. Farms having up to 3000 birds were considered as small, 3001 to 5000 as medium, while 5001 and above as large ones. The study mainly focused to estimate returns to scale in broiler farming and to make policy recommendations. The empirical results indicate that on average poultry farmers raised 4.97 flocks per year. Duration between two batches was found 21 days. Average sell price of broiler was noted Rs. 99/kg and the farmers marketed 4547 kgs live broilers. Mortality rate in the present study was recorded 8.30% birds per farm. Broiler cost was calculated Rs. 88.47/kg and gross income from raising broiler was estimated at Rs.100.04/kg. After subtracting costs incurred on various inputs, the net revenue comes to Rs.11.57/kg. The Cobb-Douglas production function results revealed constant return to scale. The major problems of the broiler farms, as perceived by the farmers were high prices if inputs and chicks, high mortality rate, low price of birds and adulteration in inputs. The farmers suggested that livestock extension/research institutions provide training to farmers regarding improved management techniques the government should fix the price of broiler meat per kg and reduce the price of inputs.