Profitability of broiler farms in four southern districts in Bhutan

Abstract

The study was designed to assess the profitability of broiler farms in four southern districts of Bhutan. From these sites, those broiler farms having more than 200 birds were included in the study. The data were gathered through face-face interview using semi-structured questionnaires from 61 respondents. The data collected were subjected to descriptive analysis. The finding indicated that majority of the respondents are either into semi-commercial or commercial farming business. A total depreciated fixed costs, variable costs and net farm income were estimated to determine the profitability of broiler farming. The study revealed that 96 % of the total cost was incurred on variable costs and only 4 % were accounted as fixed costs. Amongst the variable costs, highest expenditure (76%) was incurred on the purchase of commercial broiler feed. Of the total fixed costs, 45 % of the investment was incurred for the construction of broiler sheds. The average net profit to farmer through broiler farming of 1083 birds flock accounts to Nu. 86,607/- which correspond to 24% profitability ratio.