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Consumer-Driven Profit Maximization in Broiler Production and Processing

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  • Costa, Ecio de Farias
  • Houston, Jack E.

Abstract

Increased emphasis on consumer markets in broiler profitmaximizing modeling generates results that differ from those by traditional profit-maximization models. This approach reveals that the adoption of step pricing and consideration of marketing options (examples of responsiveness to consumers) affect the optimal feed formulation levels and types of broiler production to generate maximum profitability. The adoption of step pricing attests that higher profits can be obtained for targeted weights only if premium prices for broiler products are contracted.

Suggested Citation

  • Costa, Ecio de Farias & Houston, Jack E., 2004. "Consumer-Driven Profit Maximization in Broiler Production and Processing," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 42(1), pages 1-18, March.
    • Handle: RePEc:ags:rdecag:156067
    DOI: 10.22004/ag.econ.156067
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    References listed on IDEAS

    as
    1. Allison, John R. & Baird, D. M., 1974. "Least-Cost Livestock Production Rations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 6(2), pages 41-45, December.
    2. Mariano J. Gonzalez-Alcorta & Jeffrey H. Dorfman & Gene M. Pesti, 1994. "Maximizing profit in broiler production as prices change: A simple approximation with practical value," Agribusiness, John Wiley & Sons, Ltd., vol. 10(5), pages 389-399.
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    Agribusiness;

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