A Quantitative Model to Determine Factors Affecting Profits of Broiler Enterprises


Abstract: The purpose of this study was to demonstrate the use of the profit function regression model as a decision support tool in commercial broiler production. The fact that the estimated impact factors affecting profitability on the profit per kg live-weight were similar to those observed in the field indicates the power of the model as a decision support tool in broiler production. Because the marginal impact of each independent variable on profit was the estimated coefficient value, they could simply be used to evaluate "what-if scenarios" and the risk of investment under changing circumstances in broiler production. It is, therefore, proposed that commercial broiler producers use such a modelling approach as a practical decision support tool.

Keywords: Commercial broiler production, profit function, decision support tool

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