Economic Analysis of Different Broiler Farm Capacities: A Case Study of Jordan

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.

The impact of education and experience on profit of smallholder dairy farming at Batu City of Malang Raya, Indonesia

“…This finding confirmed with the study of H.Girma, Heliyon [8] in that the diminishing technical inefficiency for milk production will related significant with the years of education. Therefore, education of household head positively affects technical efficiency of milk production [11].…”

“…The diminishing technical inefficiency for milk production will related significant with the years of education [8]. Education of household head negatively affects technical inefficiency of milk production but, positively influence it as found in [9,10,11].…”

Economic and environmental assessment of U.S. broiler production: opportunities to improve sustainability

“…While there have been a large number of life cycle assessments published regarding poultry production ( de Vries and de Boer, 2010 ; Lesschen et al, 2011 ; MEDA et al, 2011 ; FAO, 2013 ; Prudêncio da Silva et al, 2014 ; Benavides et al, 2020 ; Costantini et al, 2021 ; Bos et al, 2022 ; Kiss et al, 2022a , b ; Mostert et al, 2022 ; Yayli and Kilic, 2023 ; Zisis et al, 2023 ), only a few of them analyze the U.S. commercial industry ( Pelletier, 2008 ; Putman et al, 2017 ; Thoma, 2021 ) and those that include corresponding economic impacts (i.e., TEA) are for other countries ( Heidari et al, 2011 ; Castellini et al, 2012 ). Similarly, while there have been economic assessments presented for broiler production ( Heien, 1976 ; Sheppard, 2004 ; Firdaus and Komalasari, 2010 ; AL-Sharafat and Al-fawwaz, 2013 ; Udo et al, 2017 ; van Horne, 2020 ), few are applicable to the U.S. commercial industry. One challenge with analyzing the U.S. broiler industry, which is addressed in this study, is the unique arrangement between the ∼20 large poultry companies that account for >95% of broiler production ( MacDonald, 2014 ) (Integrators) and the small producers who are contracted to raise the birds (Growers).…”

Investment feasibility and marketing of mangosteen commodity in Central Sulawesi, Indonesia

“…Investment analysis was conducted to find out farm feasibility for 25 years of investment period by the entrepreneur. According to Al-Sharafat & Al-Fawwaz (2013), some indicators provided reasonable and reliable tools to conduct a financial feasibility analysis as a procedure to achieve the goals of any feasibility study. The scope of the feasibility of this study is limited to investment decisions made by entrepreneurs to develop their farms.…”