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In this investigation, an attempt was made to analyse the economic viability of poultry layer farms in the East Godavari district of Andhra Pradesh. The investigation was based on primary data collected from 90 poultry farmers from two randomly selected mandals of East Godavari district by interviewing the respondents during 2018-19. The result revealed that the investment made per bird was `138.15 for the overall category, while for small, medium and large farms, it was found to be `165.81, 162.22, and 130.91, respectively. Per 100 eggs, the production cost was `340 for the whole sample and `368.11, 356.39 and 336.18 for different size groups of farms under investigation. Gross and net returns per 100 eggs were `423.07 and 3.06, respectively, for the sample as a whole. Average gross and net returns per layer were worked out to be `1308.37 and 256.89, respectively. Benefit-Cost (B: C) ratios were 1.21 and 1.19 for the sample as a whole at discount rates of 12 and 18 per cent, respectively. All farm size groups obtained positive Net Present Value (NPV). Internal Rate of Returns (IRR) was 30.79 in overall farms, whereas IRR was estimated to be 28.66, 29.60 and 31.03 in small, medium and large farms. Hence, layer farms were found to be financially viable and profitable for all groups of layer farms. Keywords: B-C ratio, costs and returns, establishment costs, internal rate of return, net present value. JEL Codes: D24, D25, D57, D61.
A Sat, study studied this question.