Determinants of the profitability of poultry farming in the Gazipur district of Bangladesh.

Abstract

Nowadays, smallholder poultry producers in Bangladesh face substantial challenges in operating their businesses profitably. This study looked at the factors that influence the profitability of poultry farming in Bangladesh's Gazipur area, employing primary data collected from 200 poultry farmers with 100 broiler and 100-layer producers. Econometric models were used to analyze the survey data. The findings demonstrate that the economic viability of poultry farming in the study areas was subject to various socioeconomic factors. The estimated parameters that significantly and positively influenced the profitability were the cost of hired labor and veterinary services with the coefficient value of 0.16 and 1.35, respectively. Conversely, the profitability exhibited an inverse relationship with education level, family size, costs of tools and equipment, and day-old chicks, with parameter estimates of 0.85, 1.73, 1.07, and 1.47, respectively. As the cost components in this study are found to have a dubious effect on profitability, specific cost-reduction strategies are required at both national and local levels to assist farmers in adhering to their budgetary constraints and enhancing their net farm profit. In addition, innovation in the poultry sector should be made readily available at an affordable cost, and factors that impede profitability, such as large family size and higher education, should be converted to assets through adequate training.