A deterministic model for the economic evaluation of broiler production systems

Abstract A deterministic model for the economic evaluation of broiler production and the derivation of economic values in broiler breeding was developed and tested. The model distinguishes four production stages: multiplier breeder, hatchery, commercial grower, and processor. The processor is included to determine relationships for the price per kilogram of live weight and the quality of the carcass, either on a “whole sale” or “further processed” base. Quantity of product output for the system is fixed by a predetermined amount of kilogram carcass of final product broilers finished by the commercial grower. Profitability of production and cost prices per unit product for subsequent stages can be calculated. Exogenous parameters are easily changeable in order to calculate profitability and cost prices for different production levels or production circumstances. Economic values can be derived considering influences of changes in genetic merit for performance traits on profitability or cost price, for integrated and nonintegrated production systems. By changing exogenous parameters, the model can also be used to analyze profitability or derive economic values for other meat-type poultry, such as turkey.