MAterials and Methods

Source of Data
The study was focused to Faisalabad district and was based upon the collection of
primar1y data through a survey during 2014 from flocks which were reared in environment
control houses. The list of poultry farms locatted in Faisalabad district was obtained from
Pakistan Poultry Association {PPA} office in Faisalabad. Environmental Control Houses were
selected through simple random sampling. The information was collected from Poultry Farms.
That poultry farms were situated in Faisalabad and Dijkot . The Farmers were personally
surveyed and data collected through formal interviews and filled the questionnaires .Besides
the cost of different components broiler production information collected also includes
socioeconomic characteristics of broiler farmers like education Level , family structure ,age in
this study these points are noted:
1. Education Status
2. Farm size
3. Chick Company
4. Feed company
5. Biosecurity
6. Total expenditure on Flock
7. Economic Output
8. Expenditure on Machines
9. Expenditures on vaccines
10. Expenditure on disinfectant
11. Different points during brooding
12. Different points related to precision farming
13. Problems faces by farmers
Along with the descriptive analysis and financial techniques the most common
technique used in this study was profitability analysis. Over the Time Industry has
moved from a simple measure of bird weight to weight for age , morality, FCR and more
recently european efficiency factor.
Feed conversion Ratio:
𝐹𝑒𝑒𝑑 𝑖𝑛𝑡𝑎𝑘𝑒
𝑤𝑒𝑖𝑔ℎ𝑡 𝑔𝑟𝑎𝑖𝑛

European Efficiency Factor:

 The European Efficiency Factor (EEF) was calculated ,based on the age of broilers at sale
(days), their average live weight (kg/bird), liveability (%) and feed conversion index – 1C (kg
feed/kg grain)
[Liveability (%)∗ Liveweight (kg)∗ 100]
EEF =
age of capitalization (days)∗𝑓𝑒𝑒𝑑 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑢𝑡𝑖𝑜𝑛(𝑘𝑔)

Profitability Index:
The profitability index (PI) is the net farm house income (NFI) per unit of gross Revenue
Data was evaluated using descriptive and economic technique.
𝑁𝐹𝐼
𝑃𝐼 =
𝐺𝑅
NFI will be calculated as:
NFI = TR – (TVC + TFC)
Where
NFI = Net farm income in Rupees
TR = Total Revenue in Rupees
TVC =Total Variable Cost in Rupees
TFC = Total Fixed cost in Rupees
Net farm Income means the difference between total revenue in rupees for the farm and total
expenses of Production in rupees. Total revenue is defined as total money value of all boilers
sold in last flock. Total cost (TC) is defined as the sum of fixed cost plus variable cost (VC) i.e .
TFC + TVC + TMC – TC . The total cost of production was divided into fixed costs and variable
costs. Fixed cost included the cost of land and equipment whereas the variable costs included ,
the cost of day , old chicks, cost of feed vaccination , labour charges and other miscellaneous
charges such as electricity and gas etc.
The variable costs are specific to an enterprise and vary with its scale i.e . variable cost
has direct relationship with the level of output. The variable cost includes the cost incurred on
day , old chicks , feed vaccination , energy charges , litter , line and medication wages of casual
labor and other day to day expenditure of farm. These costs are known as working capital
required for the production cycle . Total fixed costs(TFC) are those cost incurred which don’t
change when output changes and therefore no influence on production decisions in the short
run. Total variable cost (TVC) is the cost of variable inputs used in production. They change
directly with the level of production. Gross margin is the Difference between total revenue and
total variable cost.
 GR = TR-TVC
The following profitability measures were calculated
TC = TFC + TVC
Rate of Return on investment (%) =(NFI/TC) * 100
Rate of return on variable cost (%) (TR- TFC)/TVC * 100
Rate of return on fixed cost (%) = (TR – TVC )/TFC *100
Capital turn over (CTO)= TR/TC
Above techniques were applied for the analysis of the survey following the methodology used
in Ajala et al. (2007).
Point Spread:
Point Spread = Live weight (lb) – Feed Conversion) * 100
Performance Index :
Performance Index = Weight(lb)/FCR *100
And the impact of practices related with precision poultry farming will be assessed on the
profitability of Bird.