Research Journal of Biological Sciences

Year: 2010
Volume: 5
Issue: 1
Page No. 111 - 115

Factors Affecting Profits of Broiler Industry in Jordan: A Quantitative Approach

Authors : Motasem AL-Masad

Abstract: The main objective of this study was to look at the profitability of broiler sector in Jordan. The study has been conducted to investigate the main factors affects profits of broiler producers in the country. A profit function regression model was used as a decision support tool in commercial broiler production. The model was utilized to demonstrate the effect of several investigated factors affecting the industry. The effect of sale price of broiler, price of purchased chick, price of feed, cost of labor, cost of veterinary service and medicine, costs of building and machinery depreciation and maintenance, cost of heating and lighting, mortality rate and feed conversion rate on the profit of the broiler producer were investigated. These variables were resembled by symbols X1-X9 diirly. The results of the study shown that each of these factors is with a specific effect on producers’ profit. The results shown that a rise in the sale price of broiler meat (JD kg-1), Live Weight (LW) which is resembled X1 by 1 JD will increase in the profit kg-1 LW by nearly 0.80 JD. In the other hand, the rises in X2, X3, X5, X6, X7, X8 and X9 will lead to a drop in the profit kg-1 LW by 0.54, 1.1, 1.4, 1.3, 1.1, 0.245, 1.4 and 0.4 JD, respectively. The model estimates were quite compatible with field observations. In field observations, the most important factors affecting profit in this study were the price of feed and the Feed Conversion Rate pra. The correlation matrix of the variables in the regression model shows stronger negative relation between the dependent variable (profit) and these two factors compared to the other variables. The correlation coefficients were 0.301 and 0.357 for price of feed and FCR, respectively.

How to cite this article:

Motasem AL-Masad , 2010. Factors Affecting Profits of Broiler Industry in Jordan: A Quantitative Approach. Research Journal of Biological Sciences, 5: 111-115.

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