Abstract

The present study examined the supply-price response of poultry products. The objectives of the study are (i) to work out the economics of production of layer and broiler farming and (ii) to analyse the supply-price response of poultry products. In order to fulfil the objectives, 50 layer farms and 50 broiler farms in Salem district of Tamil Nadu were selected randomly and studied. Time-series data on supply of egg and poultry meat, price of egg and chicken were collected for the district from 1971-1990 and analysed. Cobb-Douglas type of function was employed to analyse the supply-price response of poultry products. It is evident from the study that the production of layer was economically profitable than the broiler production. Price of egg significantly influenced the egg supply. The egg supply was price elastic and supported the neo-classical theory of supply. Similarly, the broiler supply is also own-price elastic and significantly influenced by price of broiler. It is lucid from the study that the joint product clasticity of poultry products was positive and elastic. Enough efforts must be made to fix remunerative prices of poultry products as it will hasten the growth and development of poultry sector.

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