Contribution Of Crumbled Feed To Cost Reduction In Broiler Production: A Field Experiment

ABSTRACT

The ultimate goal of the study is to assess the crumbled feed technology with respect to its contribution in cost savings in per unit cost of production in broiler via a field experiment. The experiment was carried out using 294 broiler day-old-chicks divided into two groups; control and treatment, with three replications each. Each replication consisted of 49 birds. The experiment was carried out for six weeks, which means two weeks saved from the actual 8 weeks farmers keep the birds to get them ready for market. Data was collected from the experiment, on market prices and cost of production inputs used during the experiment. The study deployed experimental evaluation method to analyse the data. This method of analysis had two components: the statistical test for significant differences at 1%, 5%, and 10% percent, descriptive statistics and central tendencies. The statistical test was then complemented by the economic analysis using; minimum cost analysis, partial budgeting technique, marginal analysis, sensitivity analysis, ROI (return on investment) and finally, cost-price analysis and MVP (marginal value product) were also used. Feed conversion ratios of replications one and three showed significant differences between means at (P < 0.1) level in favour of the treatment group. Birds of the treatment group yielded better performance compared to the control group. The treatment group reached a feed conversion ratio (FCR) of 1.75 against 2.060 for the control group and the corresponding live weights reached were 2.312 kg and 1.967 kg respectively for the treatment and control group. Failure of the mean values of the parameters tested for significant differences means that the contributions of the technology was less linked to output directly, therefore further, economic analysis must focus cost reduction and saving in inputs use pattern. From the minimum cost analysis, it was observed that the crumbled feed offers the option of lower cost of GHS 6.100 which is preferable to GHS 7.130 to produce 1kg live weight of broiler. The analysis of the crumbled feed substituting for mash feed using the partial budget technique estimated the net contribution of the crumbled feed to be GHS 3.760 per bird produced or GHS 1.630 per 1 kg of live weight of broiler produced. The sensitivity analysis results showed that a 5% increase in the price of crumbled feed leads to 3% increase in total cost of production. The cost-price analysis carried out revealed that the crumbled feed has contributed immensely to producing broiler competitively. Under the experiment, it is possible to produce broiler, process and market at the total cost GHS 8.182 per kg. The price of the most price competitive frozen chicken on the domestic market sells at GHS 8.000 per 1kg. At this point the domestic broiler production under the experiment is making zero margin in profit. Broiler producing business are thus encouraged to switch from the use of mash feed to using crumbled feed for raising broilers. Feed mills operators are also encouraged to produce high quality crumble feed for producers of broiler. Integration of the Ghanaian poultry industry with all sectors (feed mills, crop sector, hatcheries etc.), market and institutions must be championed and invested in by both government and the private sector. Broiler business should develop ready market (fast food, chop bars, restaurants and hotels) for their produce as a strategy to further reduce cost of production.