Cost – benefit analysis and distribution channel of Dang chicken in Southern region

Abstract

The objectives of this research were to investigate cost and benefit of producing and distribution channels of Dang chicken in Southern region. The samples were collected from 60 farmers who raised chickens in Nakhon Sri Thammarat, Surathani and Chumphon province by using a structured interview. The results show that the farmers have average net income at 10.13 baht/individual/production cycle and average income over cash cost was 28.47 baht/ individual/production cycle. The average total cost of raising Dang chickens is 117.87 baht/ individual/production cycle, which consisted of fixed and variable costs. The fixed production cost was 6.09 baht/ individual/production cycle consisted of depreciation and opportunity cost, non–cash. The most fixed cost is depreciation of poultry structure and equipment. The average total variable cost is 111.78 baht/bird/production cycle. The three important variable costs are feed, with the highest percentage at 69.66%, the breed accounted for 12.73% and opportunity cost, non–cash household labor accounting for 10.39%, respectively. The distribution channel showed that farmers preferred selling Dang chickens to merchants in the local area, with the high percentage accounting for 68.33%, followed by distribution to wholesale merchants/retail merchants accounting for 20.00%. And others, such as community consumers/community restaurants accounting for 11.67%, respectively.