Contract vs. non-contract broiler farming: An evaluation of efficiency and profitability in Punjab

Abstract

This study aims to assess the costs and returns of broiler farming in the Ludhiana district of Punjab. The study area was purposively chosen due to its leading position in broiler production and potential for local market demand. A total of 20 broiler farmers from both contract and non-contract farming systems were randomly selected from two blocks. The study used simple averages to estimate total costs, including variable and fixed costs, and gross returns from broilers, manure, and empty bags. The findings and recommendations of the study on broiler farming in the Ludhiana district of India can offer valuable insights for developing countries worldwide. By addressing the challenges faced by broiler farmers, such as high production costs, feed price fluctuations, and disease outbreaks, the study provides a roadmap for enhancing the efficiency and profitability of broiler farming in developing countries. The results showed that broiler farming is a profitable venture in the Ludhiana district, with potential for further cost reduction and profitability through scientific management and value addition. The policy implications of this study suggest the need for more training for farmers to adopt scientific management practices, subsidies by government to farmers and regulation of prices due to high fluctuation in prices of broilers.