International Journal of Agricultural

Science and Research (IJASR)

ISSN(P): 2250-0057; ISSN(E): 2321-0087
Vol. 5, Issue 1, Feb 2015, 73-80
TJPRC Pvt. Ltd.

ECONOMIC ANALYSIS OF COSTS-RETURN, INCOME AND EMPLOYMENT IN

POULTRY ENTERPRISE IN JAIPUR DISTRICT OF RAJASTHAN STATE
VIKASH PAWARIYA1 & SS JHEEBA2
1

M Sc Agricultural Economics, Department of Agricultural Economics, SKN College of Agriculture, SKN AU,
Jobner, Jaipur, Rajasthan, India

Associate professor, Department of Agricultural Economics, SKN College of Agriculture, SKN AU, Jobner, Jaipur,
Rajasthan, India

ABSTRACT
Among the Indian livestock based vocations, poultry farming occupies a pivotal position due to its enormous
potential to bring about rapid economic growth with low investment. The Indian poultry sector with 7.3% growth in
poultry population, has witnessed one of the fastest annual growth of about 6% in eggs, 10% in meat production and 8.35%
in broiler production over the last decade amongst all animal based sectors. Poultry sector provides employment to over
five million people in the Country. The growth potential of this sector is bright due to regular flow of income throughout
the year in the rural economy of the Rajasthan state. In spite of a spectacular growth in the poultry sector during the past
two decades, a huge gap exists between availability and need of poultry products. Therefore, the present study has been
undertaken to look into the cost and return structure, production efficiency, income and employment generation and
economic viability of different sized poultry farms in poultry enterprise in the Jaipur district. The Data were collected from
twenty poultry farms pertaining to Jaipur district of Rajasthan state during year 2013-14.

KEYWORDS: Poultry Enterprise, Cost and Return, Income, Employment

INTRODUCTION
Poultry is important for increasing productivity in Livestock sector. The growth potential of this sector is bright
due to regular flow of income throughout the year in the rural economy of the Rajasthan state. Among the livestock sector
Poultry industry contributes about Rs. 400 billion accounting for about 0.7 per cent of the national GDP and about 10% of
the Livestock GDP. In livestock 65 per cent is contributed by meat products, 22.5 per cent by dairy products and 12.5 per
cent by poultry products (FAO Statistical Book, 2011). Poultry sector provides employment to over five million people in
the Country. Poultry sector is dubbed as the one having highest employability per unit of investment among all the
livestock sectors. The Indian poultry sector with 7.3% growth in poultry population, has witnessed one of the fastest annual
growth of about 6% in eggs, 10% in meat production and 8.35% in broiler production over the last decade amongst all
animal based sectors. Despite such progress, the average per capita availability is still merely 53 eggs and 2.4 kg of poultry
meat against the recommended levels of 180 eggs and 11kg meat per annum. The organised sector of Indian poultry
industry contributes nearly 70% of the total output whereas the rest emanates from the unorganized sector. Jaipur district
ranked second in organized poultry farms in Rajasthan. In spite of a spectacular growth in the poultry sector during the past
two decades, a huge gap exists between availability and need of poultry products. Therefore, to meet the domestic need, it
is required to increase meat production by six times. Increase in population growth, changing life-style, shifting of food
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Vikash Pawariya & Ss Jheeba

habits, rapid urbanization, increased per capita income, awareness about health care, etc. are contributing towards rising
demand of poultry products. Thus, the growth potential of this sector is bright due to regular flow of income throughout the
year in the rural economy of the Rajasthan state. Diversification of agriculture through allied activities like poultry farming
has acquired added significance for solving the agrarian crisis of the state. Adoption of poultry farming, will meet the
growing demand of poultry products and nutrition. (Singh et al., 2010). Therefore, it is a high time and reasonable to
evaluate the different economic aspects i.e. cost, returns and income and employment from stand point of performance of
poultry farms with respect to in the district.

MATERIALS AND METHODS

The study was conducted in Jaipur district of Rajasthan state. There were 200 organized poultry farms in Jaipur
district. A 10 per cent sample that is 20 poultry farms were selected randomly. Both primary and secondary data were used
for the study. The relevant primary data were collected by interviewing the farmers personally and from the records
maintained by them with the help of pre- prepared schedules for the year 2010-11 to 2012-13. The secondary data with
respect to the list of organized farms, egg prices were collected from Directorate of animal husbandry, Jaipur, National Egg
Coordination committee and Poultry Training Institute and various other publications. The collected data were analysed
using statistical techniques such as, mean, percentages and ratios for better precision of analysis. In estimation of costs and
returns of poultry farms, following concepts were used:
Total Variable Costs (TVC)
Total Fixed Costs (TFC)
Total Costs (TC = TVC + TFC)
Total Revenues (TR)
Net Revenues (NR = TR - TC).

RESULTS AND DISCUSSIONS

Total cost per bird was Rs 185.08 in the broiler farm and Rs 602.51 in the layer farm. The variable costs consist
79.14 per cent in broiler farm and 90.01 in layer farm of total costs. The total fixed cost consist 20.86 per cent in broiler
farms and 9.99 per cent in layer farms of the total cost. Feed cost was Rs. 86.57 and Rs 413.21 per bird which was the
major item both in broiler and layer farms, respectively. Cost of chicks in broiler farm was the second most cost item
which was about 21.87 per cent of the total cost where as in layer farms it was about 4.33 per cent of the total cost incurred
in the farm. Transportation cost was the 2.86 per cent of the total cost in broiler as well as 5.25 per cent in layer farms of
the total cost. The transportation cost was more in the layer farm because it run for the egg production and the marketing
involved the transportation cost more frequently. In the broiler farms producing the bulk batches in a term and reselling
them in an end of a batch but in layer farms the eggs selling and batches length was more, so the transportation cost was
more.

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75

Economic Analysis of Costs-return, Income and Employment in Poultry Enterprise in Jaipur District of Rajasthan State

Table 1: Per Bird Total Costs and Returns in Broiler and Layer Farms in Jaipur District (in Rs.)
Cost item

Broilers
Overall
average

Layers
Overall
average

40.48
(21.87)
86.57
(46.84)
0.53
(0.29)
6.80
(3.71)
4.66
(2.55)
1.90
(1.02)

25.97
(4.33)
413.21
(68.64)
2.32
(0.38)
52.08
(8.68)
8.77
(1.45)

5.26
(2.86)
1.65
(0.88)
2.80
(1.49)
7.30
(3.87)
3.17
(1.79)
38.89
(20.86)
185.08
(100)

31.59
(5.25)
9.01
(1.46)
6.54
(1.05)
16.39
(2.66)
2.07
(0.35)
61.04
(9.99)
602.51
(100.00)

Source of
receipt

Overall avg.
Broilers

Overall avg. Layers

Variable costs
Cost of chicks
Feed
Casual Labour
Medicines
Miscellaneous
Interest on working capital
Transportation
Depreciation on vehicle
Depreciation on equipment
Interest on fixed capital
Land rent
Total Fixed Costs
Total Costs

7.53
(1.25)

00.00
(00.00)
222.75
(96.34)
8.41
(3.60)
0.14
(0.06)
231.30
(100.00)

718.03
(92.35)
37.84
(4.81)
19.95
(2.55)
2.28
(0.29)
778.10
(100.00)

Total Costs

185.08

602.51

Net Returns (NR)

46.22

175.59

Sale of the Eggs

Sale of birds
(Broilers)/(Cocks)
Sales of manures
Sale of empty gunnies
Gross Returns (TR)

Figures in parentheses are percentage to total costs and total returns.

The salary of labour cost was Rs 20.74 per bird (11.11 per cent) in broiler farms and Rs 20.73 per bird (3.41 per
cent) in layer farms. The per bird veterinary cost, casual labour, miscellaneous cost and interest on working capital cost in
broiler farm was Rs 6.80(3.71 per cent), Rs 0.53(0.29 per cent), Rs 6.80(3.71 per cent), Rs 1.90(1.02 per cent), respectively
and in layer farm was Rs 52.08(8.68 per cent), Rs 2.32(0.38 per cent), Rs 8.77(1.45 per cent) and Rs 7.53(1.45 per cent),
respectively. The variable cost has the loin share in the poultry production in both layer and broiler farms. The fixed cost is
relatively less in the production process. The layer farms needed the big amount invested and the small farmer could not
invest in that so the mostly farms located in jaipur is broiler farms which give them the instant revenue after two months
while in layer the process is longer and intial four month is the gestation period. The major receipt in the broiler farms was
from the sale of broilers and in layer farms was from the sale of eggs. The revenue from the sale of broilers was Rs 222.75
per bird constituting 96.34 per cent of the total revenue in broiler farms and from the sale of eggs did Rs 718.03 per bird
constituting 92.35 per cent of the total revenue in layer farms. The gross return was Rs 231.30 in broiler farms and was Rs
778.10 in layer farms. The net return was Rs 46.29 and Rs 175.59 in broiler and layer farms, respectively. The B-C ratio
was 1.25 in broiler farm and 1.29 in layer farms. The layer farms were more productive than the broiler farms in the
returns. But due to heavy initial investment only big farmers and entrepreneurs were running into the layer farms.

Impact Factor (JCC): 4. 3594

Index Copernicus Value (ICV): 3.0

76

Vikash Pawariya & Ss Jheeba

Income and Employment Generated Per Broiler and Layer Farm Poultry Enterprise
Income and Employment Generation in Broiler Farm: Income and employment generation in the broiler
poultry farms were presented in table 2. For the computation of income and employment generation, the present study has
considered three years of period from July, 2010 to June 2013. As shown in table, the total net income and employment
generated from broiler farms was Rs. 783281 and 316.83 man days, respectively. The total average income was earned Rs.
147344 in year 2010-11, Rs. 259656 in year 2011-12 and Rs. 353266 in year 2012-13. Likewise the total employment
generated 98.16 man days in 2010-11, 104 man days in 2011-12 and 114.67 man days in year 2012-13. The total average
income and employment generated was increasing over time. This shows that the broiler farms were viable and more
economic overtime.
Income and Employment Generation Per Layer Farm: Income and employment generation in the layer
poultry farms were presented in table 3. For the computation of income and employment generation in the present study
have been considered three years of period from July, 2010 to June 2013.
Table 2: Annual Income & Employment in Broiler Farm for, Year 2010- Year 2013
S.
No.

Particulars

Total Return
(Rs)

Avg. Total Income

(Rs.)

Employment
(Man Days)

1.

2010-11

999964
(26.53)

147344
(19.67)

98.16
(30.98)

1280383
(33.97)

259656
(33.35)

104
(32.82)

1488333
(39.50)

353266
(46.98)

114.67
(36.19)

3768681
(100.00)

783281
(100.00)

316.83
(100.00)

2.
3.

2011-12
2012-13
Total income and
Employment

Figures in the parenthesis indicate percentage to the total income& employment, respectively.
As shown in table 3, the total net income and employment generated from layer farms was Rs. 29.95 lakh and 641
man days, respectively. The total average income was earned Rs. 13.18 lakh in Ist batch of June 2010-Dec 2011 and the
total average income was earned Rs. 16.77 lakh in IInd batch Jan 2012-June 2013. Likewise the total employment
generated 314 man days in year 2010-11 and 327 man days in the year 2012-13. The man days were accounted from the
total production cycle of one layer farm was 540 man days per batch.
Table 3: Income & Employment in Layer Farm for, Year 2010-Year 2013
S.
No.

Particulars

Total Return*
(Rs)

Avg. Total
Income* (Rs)

1.

June 2010-Dec 2011

5835456 (43.95)

1318289 (44.01)

2.

Jan 2012- June 2013

7440902 (56.05)

1677520 (55.99)

Total income and

Employment

13276358
(100.00)

2995809
(100.00)

Employment*
(Man Days)
314
(48.98)
327
(51.01)
641
(100.00)

Figures in the parenthesis indicate percentage to the total income& employment.

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Economic Analysis of Costs-return, Income and Employment in Poultry Enterprise in Jaipur District of Rajasthan State

77

Layer production cycle runs for 18 months.

Here, the increasing or positive trend shown overtime from first batch to second batch with respect to Income and
employment generation.

CONCLUSIONS
The cost and return analysis showed that the feed cost was the major constitute in the poultry enterprise. The
variable cost had a lion share. The gross receipt from the broilers and from the eggs was about ninety per cent in broiler
and layer farms, respectively. The BC ratio of layer farms was more than broiler farms. This shows the profitability of the
layer farms on the broiler farms. The investment pattern showed that the layer farms were needed the high investment and
the profitability was in the bigger time taking while the broiler farms were giving the instant profit as well as in little time.
It is concluded from the above facts and profitability that the study area were enough potential to grow in the poultry
sector. The total average income and employment generated was increasing over time. This shows that the broiler farms
are viable and more economic overtime.

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Impact Factor (JCC): 4. 3594

Index Copernicus Value (ICV): 3.0