Is Poultry Egg Production Profitable in West-Central Bhutan?

Abstract

The study objective was to determine the Cost of Production [COP] per egg, Break-Even Point [BEP], Marginal Safety Ratio [MSR] and Payback Period [PBP] of layer farms in the west-central region of Bhutan. Forty-layer farms having stock size of 100 and more birds from four districts were surveyed. Information from these farms was collected using semi[1]structured questionnaires and field observations were recorded to complement the questionnaire. Results showed that 93.8% of farms with the estimated mean stock size of 540 birds had obtained an estimated mean profit percentage of 32.2% from a batch of layer stock. The estimated mean COP per egg was Nu. 6.79 and mean selling price per egg was Nu.8.85 in the study area. An increase in size of the farm by 100 birds was associated with an estimated mean decrease in COP per egg by Nu. 0.12. The farms that stock in pullets had an estimated mean COP per egg of Nu. 1.22, which was higher than those that stock in Day-Old[1]Chicks [DOC]. An estimated mean BEP of Nu. 1,96,483.9 and 22,383 eggs or units were recorded in the region. The estimated mean margin of safety of Nu. 17,49,785 or 85.4%, indicated a high level of safety in the enterprise. Revenue-Cost ratio of 1.3 indicated that the enterprise would earn revenue of Nu. 1.3 for every ngultrum invested. The estimated mean payback period for 93.8% farms were 0.59 batches, indicating that the capital investment can be recovered from a single batch of layer stock. The general results show that the poultry egg production in the region is a profitable and sustainable venture in terms of economics. Technical assistances and improved managerial skills in poultry egg production are some areas of future support from government.