Breakeven Point Analysis for the Chicken Egg Farms in Chiang Rai Province

Abstract

This research aims to study the general conditions for chicken egg farms in Chiang Rai Province, the breakeven point and returns, and the factors affecting the operation of Chicken Egg Farms in Chiang Rai Province. During the research, data collection was conducted using questionnaires and interviewing the chicken egg farmers, in total of 30 people. Sample group was selected by purposive sampling method.

          The results show that, majority of chicken egg farmers are female, aged between 46-59 years old, with the experience in egg farming 1-5 years, and mostly running the egg farm as additional income. For the general condition, hen houses are standardized farm/ hen house with the open range technique or farming on top of fish ponds. The farmers choose their hen breeders (18 weeks) using CP brown. For the feed, they source their ready-made feeds from livestock company, and using tap water. They sell their own eggs produce in mixed size.

The breakeven point for the chicken egg farms in Chiang Rai province, with the temporary hen house investment less than 700,000 Baht, and less than 5,000 hens, would be 4,620 eggs per month on average for the sales to breakeven and the net profit at 10.55%, rate of return on investment (ROI) 11.80%. For the permanent hen house (large size), with the investment cost over 700,000 Baht, and over 5,000 hens, the breakeven point will be at 79,686 eggs per month on average, net profit at 5.65%, and the rate of return on investment at (ROI) 5.99%.

The factors on the production have moderate impact toward the operation of chicken egg farms. The factor ranking by the highest mean score is protection, follows by working capital funding, marketing management, technology, and pricing, in respective score ranking.