National Academy of Agricultural Sciences (NAAS)
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PRINT ISSN : 2319-7692 Online ISSN : 2319-7706 Issues : 12 per year Publisher : Excellent Publishers Email : editorijcmas@gmail.com / submit@ijcmas.com Editor-in-chief: Dr.M.Prakash Index Copernicus ICV 2018: 95.39 NAAS RATING 2020: 5.38 |
Present study was carried out in Sonitpur district of Assam by collecting farm level data from 100 broiler farmers during 2012. Initially, economic appraisal of broiler farms was carried out conducting break even analysis and investment appraisal (computing Pay Back Period, Net Present Value, Benefit Cost Ratio and Internal Rate of Return) in each of the sample farms. Subsequently, to examine the effect of changes in cost, yield and return structure on the existing economic performance of the broiler farms, sensitivity analysis was carried out by re-working all the break even values and investment appraisal tools under different scenario of yield, price and cost changes. The break even analysis reveal that although all the farms in their existing condition of average prices and production were well above all the break even values in terms of price, quantity produced (in Kg live weight and number of birds), volume of meat produced and number of years required to cover the investment cost, however, if the production falls by 25% of the existing production of birds, none of the farms in any size groups remains economically viable. Similarly, if price of the bird falls below 15% of the existing price, small sized farms (Group I and II) do not recover from the business, while large ones still remains profitable and viable in the business. PBP, NPV, BCR and IRR values computed under changing cost and return structure, showed that large farms were relatively less sensitive to changes in costs and returns, while smaller farms became unviable especially when both costs were increased by 5% and returns decreased by 5% simultaneously.
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