Application of risk-rated profit model functions in estimation of economic values for indigenous chicken breeding

Abstract

The economic values for productive (egg number, average daily gain, live weight, and mature weight) and functional (fertility, hatchability, broodiness, survival rate, feed intake, and egg weight) traits were derived for three production systems utilizing indigenous chicken in Kenya. The production systems considered were free-range, semi-intensive, and intensive system and were evaluated based on fixed flock size and fixed feed resource production circumstances. A bio-economic model that combined potential performances, feeding strategies, optimum culling strategies, farmer's preferences and accounted for imperfect knowledge concerning risk attitude of farmers and economic dynamics was employed to derive risk-rated economic values. The economic values for all the traits were highest in free-range system under the two production circumstances and decreased with level of intensification. The economic values for egg number, average daily gain, live weight, fertility, hatchability, and survival rate were positive while those for mature weight, broodiness, egg weight, and feed intake were negative. Generally, the economic values estimated under fixed feed resource production circumstances were higher than those derived under fixed flock size. The difference between economic values estimated using simple (traditional) and risk-rated profit model functions ranged from -47.26% to +67.11% indicating that inclusion of risks in estimation of economic values is important. The results of this study suggest that improvement targeting egg number, average daily gain, live weight, fertility, hatchability, and survival rate would have a positive impact on profitability of indigenous chicken production in Kenya.