Agricultural Economics and Development

Agricultural Economics and Development

The Impact of Different Poultry Farm-Sizes, Management Systems and Different seasons on Full Price of Live Broiler in Fars Province of Iran

Document Type : Original Article

Author
Dadgar Mohamadi
Instructor, Department of Economic, Social and Extension Research, Fars Agricultural and Natural Resources Research and Education Center, Agricultural Research, Education and Extension Organization (AREEO), Shiraz, Iran.
10.30490/aead.2023.355052.1360
Abstract
Given the significant share of chicken meat in the food basket of households, the fiull price and its changes are of financial importance for consumers and producers. In this study, based on the budget of poultry farming units in Fars province of Iran, the cost price of live broiler in different capacities, seasons and types of mechanization systems was calculated and its changes were investigated. Also, the indicators of input cost share, optimal production size, as well as self-price and cross elasticities were calculated by estimating the cost function. The data used were collected from 88 broiler units by random sampling method. The study results showed that the full price of live broiler in the winter season is higher than other seasons, and the decrease in the average price of chicken meat with the increase in production capacity indicated that the smaller the capacity of the farm, the more uneconomical the production becomes, and the use of more modern technology in poultry units would lead to an increase in fixed costs and the full price of the product; the value of cost elasticity in relation to production is on average around 0.876 and therefore, the production of live broiler in Fars province has an upward return to scale. In addition, by calculating the price elasticities, it was found that the input demand was inelastic to price changes and also, the values obtained from Morishma elasticity of substitution indicated the very limited power of choice of the province's poultry industry in substituting production factors with each other. Therefore, due to the low price in live broiler farms with higher capacity and the upward efficiency compared to the scale, it is necessary to plan for developing the units with higher production scales.
 
Keywords
Cost Price
Factors
Affecting the Price
Economies of Scale
Broiler
Fars (Province)

Subjects

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