Abstract
This study aimed at identifying the factors that affect the economic efficiency of broiler breeder production using the analysis of stochastic profit frontier function. Data were collected in 48 broiler breeder farms contracted by a commercial company located in southwestern Paraná, Brazil. The collected data refer to the last batch of fertile eggs that was delivered to the company, between January, 2008, and July, 2009. The following parameters were evaluated: production of hatching eggs per hen (number of eggs/hen), hatchability (hatch %), feed intake per hatching egg (g feed/ egg), production scale (number of birds/batch), farmer's experience in production activities, and labor type. Factors, such as area of occupied land, electricity costs, and invested capital were also evaluated. Results showed that the cost of electricity, as well as area of occupied land, production scale, and feed intake per hatching egg significantly affect the economic efficiency of the broiler breeder farms in Southwestern Paraná, Brazil.
Highlights
During the last few years, poultry production has greatly developed
Productivity developments and production-chain coordination progress increased the competitiveness of the poultry industry in Brazil, which is based in a vertical production system that integrates small farmers and large poultry companies
The economic evaluation of broiler breeder production is very challenging for two main reasons: 1) several factors affect its profitability, which makes statistical analysis difficult, and 2) production information are hard to obtain from the genetic companies
Summary
During the last few years, poultry production has greatly developed. In 2008, chicken meat accounted for 2.94% of total Brazilian exports volume, and it is the fourth largest product in exports revenues (Mendes et al, 2014). The economic evaluation of broiler breeder production is very challenging for two main reasons: 1) several factors affect its profitability, which makes statistical analysis difficult, and 2) production information are hard to obtain from the genetic companies These challenges have been reported by several authors, including Groen et al (1998), Faridi et al (2011) and Yassin et al (2012). Despite the considerable difficulty of obtaining information from the genetic companies and dealing with a great number of variables, Yassin et al (2012), Faridi et al (2011), and Groen et al (1998) were able to evaluate some data obtained from industry and found consistent results In this context, this study aimed at analyzing the factors under the control of the poultry companies that may influence the economic efficiency of broiler breeder farmers. Economic efficiency measures; evaluated the effect of parameters related to economic inefficiency in broiler breeder farms; and defined which farm size, as defined by the number of birds housed, is the most economically efficient
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