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Economics of poultry production

by 5m Editor
30 August 2006, at 1:34pm

PAKISTAN - The human diet is deficient with respect to proteins of animal origin. At present 66 per cent of the population suffers from deficiency in protein. The requirement of protein is 102.7g per person per day while only 69.61g per person per day is being consumed.

The main source of animal protein is beef, mutton, milk, poultry meat and eggs, respectively. To overcome the gaps between supply and demand of protein, poultry meat is contributing a major share. Its share can be enhanced by improving the profitability of producer and by decreasing prices at the retail level, if issues facing the industry are resolved.

The cost of distribution from producer to consumer is very high mainly due to the high share of middlemen involved at various stages. The extraction of abnormal profit by middlemen has reduced the profit of bird growers and it discourages them to expand the production process. The share of profit of the middlemen also needs to be reduced in order to lower prices at the retail level.

A study was undertaken to look at the profitability of different stakeholders involved in poultry sector and then to formulate the policy that can distribute profits among different stakeholders on rational basis.

The business of poultry farming is expensive and risky and it is operated on purely traditional lines without any modern marketing facilities. Farmers are producing broilers without foreseeing the supply and demand situation in the market. In increased supply situation, prices prevail at low levels and vice versa. Such a situation creates uncertainty in the market and as a result, the farmers are unable to plan their businesses. The farmers need an institution that can properly monitor the market and disseminate market information.

Source: Dawn

5m Editor