Do socioeconomic factors matter for poultry farm^s profitability? Evidence from Pakistan Abdul Mateen (1) Prof. Dra. Ec. Dyah Wulan Sari,(2*)
Department of economics, Faculty of economics and Business Universitas Airlangga Surabaya Indonesia
Abstract
This study investigates the influence of socioeconomic factors on the profitability index of poultry farms in Pakistan, specifically focusing on crucial districts within Punjab, the country^s leading poultry-producing region. Using data collected from 200 poultry farms in Lahore, Faisalabad, and Sargodha, this research examines how factors such as education, age, gender, family structure, farm experience, and alternative sources of income affect farm profitability. The profitability index (PI), which averaged 42.57 with significant variability across farms, is employed as a comprehensive measure of financial performance, considering both revenue and costs. The analysis reveals that while socioeconomic factors, including education and gender, do not significantly influence profitability, economic variables like bird weight, market price, mortality rate, and input costs such as feed and medicine are crucial. Notably, farmers with alternative income streams exhibited higher profitability, highlighting the importance of income diversification in managing financial risks. The findings suggest that improving operational efficiency and reducing mortality rates are essential for enhancing farm profitability. Policymakers and investors are encouraged to support these factors through targeted interventions, such as subsidies for feed and chicks and training programs to optimize farm management practices.
Keywords: Poultry production, Profitability index, socioeconomics variables and Regression analysis.
