Comparison of Net Revenues of Open Shed and Environmentally Controlled Shed Broiler Farms in Punjab, Pakistan: Dummy Variable Regression

Poultry sector of Pakistan is generating direct and indirect employment and provision of income for millions. This study, therefore, estimated and compared costs and revenues of open shed and environmentally controlled (EC) shed broiler farms in Punjab, Pakistan. Multistage sampling technique was applied for selection of sampled respondents. 120 farmers, 60 farmers of open shed and 60 farmers of EC shed were interviewed during 2014. Dummy variable regression was applied for estimation and comparison of costs and revenues of open shed and EC shed broiler farms. Results revealed that there was statistically significant difference between the cost of production and net revenue of open shed and EC shed farms. Cost of production of open shed was PKR1 247.22 per broiler and that of EC shed was PKR 221.61 per broiler. Gross revenue was PKR 257.489 per broiler for open shed and PKR 294.112 per broiler for EC shed. Net revenue was PKR 10.269 per broiler for open shed and PKR 72.502 per broiler for EC shed. It is suggested that open shed broiler farmers also need to buy vaccinated day old chicks from standard hatcheries for fostering boiler productivity and net revenue. Moreover, use of high quality feed for highest possible output is a good option for open shed farmers.