Abstract

In agribusiness, broiler farms capacity is considered to be a very important factor in determining the profitability of these farms in developing countries. The main objective of this study was to introduce a comparative analysis of different broiler farm capacities in Jordan to determine the best viable capacity to be adopted. A total of 21, 72, and 7 producers were interviewed representing small, medium, and large farms respectively. A structured questionnaire was designed to obtain information from respondents. The Net Present Value (NPV), the Internal Rate of Return (IRR) and the Benefits-Costs ratio (B/C) were the discounted financial indicators used to achieve the goals of the study. The results of the study revealed that all the financial indicators used were economically acceptable in the medium and large size broiler production capacities. The NPV for these two capacities was positive and acceptable (23437 and 55880 JDs respectively). The benefits of these two capacities outweighed the actual costs that went in the project. For small farms, the NPV value was negative indicating non viable type of business compared to the other two capacities. Each money unit invested in small farms will cause a loss of 12.8 units (IRR = - 12.8%). On the other hand, each money unit invested in medium and large farms will provide returns higher of about 22% than the costs paid (IRR = almost 22% for both). The payback for these two capacities was 1.06 times the costs meaning that for every unit of cost the project will get 1.06 units of gain. Adoption of medium to large broiler farm capacities in Jordan is recommended by this study.

Highlights

  • Compared to other agricultural sub-sectors, in the situation of enhancing agriculture industry meat farming sub-sector is with high potential (Iman and Reza, 2012)

  • The Net Present Value (NPV), the Internal Rate of Return (IRR) and the Benefits-Costs ratio (B/C) were the discounted financial indicators used to achieve the goals of the study

  • The main objective of this study is to introduce a comparative analysis of different broiler farm capacities in Jordan to determine the best viable capacity to be adopted

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Summary

Introduction

Compared to other agricultural sub-sectors, in the situation of enhancing agriculture industry meat farming sub-sector is with high potential (Iman and Reza, 2012). Fertile eggs are collected and transported to the hatchery, where they are placed in hatcheries for 18 days and transferred to incubators in the last 3 days .After hatching, broiler chicks are distributed to producers who grow out the birds, and send them for slaughtering and processing after 42 days. These broilers are chickens that are raised for the purpose of meat production and have a larger body frame and weight than layers (Beutler, 2007). Bird stocks, operating costs, and other costs were important factors www.ccsenet.org/ijbm

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