Economic performance of contract broiler farming

The present study was conducted to assess the economic performance of contract broiler farming in Shimoga district of Karnataka state with the help of data gathered from 90 contract broiler farmers who had entered into agreement with companies to pursue their poultry business. The data was analyzed using budgeting technique, simple ratios, percentages and indices. The study indicated that the capital investment of Rs. 4.11 lakhs, Rs. 6.44 lakhs and Rs. 10.91 lakhs is required to start small, medium and large sized poultry units, respectively. The total cost incurred by the companies and the farmers for rearing of broilers was Rs. 4.29 lakhs in case of small, Rs. 6.19 lakhs in case of medium and Rs. 11.43 lakhs in case of large units. The companies shared over 92 % of the total cost while the farmers contributed 8%.