An analysis of Profitability and Resource Use Efficiency of Poultry Feed Mills in Bangladesh

Abstract

The study examines the profitability and resource use efficiency analysis of poultry feed mills of Bangladesh covering Dhaka, Gazipur, Narsingdi, Kishoreganj and Mymensingh districts. Thirty feed mills which categorized as; high, medium and low quality on the basis of feed conversion ratio (FCR), were purposively selected. The primary and secondary data were collected and analyse on Cobb-Douglas model. Four out of six variables included in the model were explainied significantly. The feed production cost was estimated Tk. 39295, Tk. 38643 and Tk. 37218 per metric tonne (MT) respectively. The cost of high quality feed was more than medium and low quality feed and the gross return was Tk. 43160, Tk. 42330 and Tk. 40500 per MT respectively. It indicates that high quality feed production was more profitable than the medium and low feed production. The results of Cobb-Douglas model indicated that if the supply of quality of raw materials increased, their efficiency would increase for low and medium. It was also found that the ratio of MVP and MFC were less than one which indicated that the resources were over utilized for high quality feed mills and three input out of six underutilized for medium and low quality feeds. Acknowledgement : All praises for the Almighty Allah Whose blessings have enabled the author to complete the task of this paper. I do hereby express my deep sense of gratitude and indebtedness to my respected professor Dr. Md. Akteruzzaman, Department of Agricultural Economics, Md. Abul Hashem, Professor, Department of Animal Science, Bangladesh Agricultural University, Mymensingh and Associate Professor Tofael Ahamed, Tsukuba University, Japan for their guidance, suggestions and supervision. I am grateful to Ministry of Science and Technology, Government of the Peoples Republic of Bangladesh for providing financial support Special thanks to all of my friends, their encouragement and moral support .