SONALI CHICKEN FARMING IN SOME SELECTED AREAS OF JOYPURHAT DISTRICT IN BANGLADESH: A FINANCIAL ANALYSIS

Abstract

This study was carried out for the purpose of determining the socio-demographic profile of Sonali chicken farmers, financial viability, technical efficiency and problems of Sonali chicken production. For achieving these objectives, 60 Sonali chicken farms were selected randomly from Panchbibi upazila of Joypurhat District in the month of June 2019. Both tabular and statistical analyses were applied in this study. The study has shown that the total fixed investment was Tk. 15696 per 100 Sonali chicken. The total variable cost was Tk. 13866 per 100 Sonali chicken per year. The total cost of meat production per 100 Sonali chicken was Tk. 14953. The net returns over variable costs were Tk. 4834 per 100 Sonali chicken per year. The study also found that in producing Sonali chicken Benefit Cost Ratio (BCR), Net Present Value (NPV) and Internal Rate of Return (IRR) were 1.12, Tk. 16912.24 and 23.38 percent, respectively. The value of NPV was positive, BCR was greater than one and IRR was more than the prevailing rate of interest. This showed that investment in Sonali chicken farming was profitable in the study area. Sensitivity analysis suggested that the investment in Sonali chicken production is profitable even for returns decreased by 5 percent, costs increased by 5 percent and if both of those happen simultaneously.

The Cobb-Douglas stochastic frontier production function was used for this study to measure technical efficiency of Sonali chicken producing farmers. The coefficients of parameters like total labor, day old chicks were significant and indicated negative & positive effect on Sonali chicken production respectively. In the technical inefficiency effect model, experience had negative & significant coefficient indicating that this helps in reducing technical inefficiency of Sonali chicken farmers. The analysis revealed that the mean technical efficiency of Sonali chicken farmers was 88 % ranging from 81 % to 99 %. On an average, 12 % technical inefficiency appears which implies that the output per farm can be increased on an average by 12 % through Sonali chicken production using the prevailing technology and without incurring any additional production cost. This study also identified some of the problems associated with Sonali chicken production. Finally on the basis of findings of the study, some recommendations were suggested for the development of Sonali chicken production in Bangladesh.