Analysis of some important cost factor of poultry meat production

Cost efficiency is one of the most important influencing factors of competitiveness in poultry business because the international price competition of poultry meat products is getting tightly year by year. This study would like to open up some property of the cost structure of chicken meat production, and try to draw up some interesting analysis about the correlation of the different cost factors of poultry meat producing. The starting point of the study is the vertically integrated poultry chain where different supply chain elements working together. The analysed supply chain elements are the chicken growing (broiler growing) and the chicken slaughtering (producing fresh chicken meat products). The study analysing the cost structure of these activities and – using the sales price level of live birds and chicken meat products – also the profitability of them. From the correlation analysis of different cost factors other conclusions can be drawn up related to the cost management of chicken growing and slaughtering, which could be helpful for players operating in poultry industry.