A Comparative Study of Cost and Benefit on Contract Broiler Farming Between Farm Using Bag and Silo Feed Storage

Abstract

Quality and safety are the most important for chicken meat producers. Using silo for storage feed is a closed system, that has a low risk of contamination and empty feed line. However, building a farm with a silo use budget more than using bags for storage. Therefore, it makes farmers hesitant to choose silo. Although farmers in contract farming still must take a risk to invest in cost and production by themselves, but farmers have an advantage in the market and selling price. To help farmers decide, information about the cost and benefit of broiler farm using silo storage and bag storage are required. Therefore, we studied by collecting data from interviews 2 farmers using silo storage and 2 farmers using bags storage. And receive some accounting information from the contracting company. Collect information with 2 crops from October 2020 to April 2021. In this study of farm size 60,000 birds, farm using silo storage, use budget more the bag storage 482,989 Baths. Both groups have similarly live ability. But farm using silo storage has average body weight and feed conversion ratio (FCR) 1.64 better than farm using bags storage that has FCR 1.71. Feed conversion ratio has an impact on the volume and cost of chicken feed. Therefore, farm using silo storage has an average feed cost less than farm using bags storage 176,089 baths. Furthermore, farm using silo storage has a net income more than farm using bags storage 152,968 baths. The break-even analysis has revealed that farm using silo storage and farm using bags, storage has to maintain a minimum of 11,590 birds and 14,919 birds to meet the cost incurred in the production of broilers.