IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v10y1994i5p389-399.html
   My bibliography  Save this article

Maximizing profit in broiler production as prices change: A simple approximation with practical value

Author

Listed:
  • Mariano J. Gonzalez-Alcorta

    (Department of Poultry Science, University of Georgia)

  • Jeffrey H. Dorfman

    (Department of Agricultural & Applied Economics, University of Georgia)

  • Gene M. Pesti

    (Department of Poultry Science, The University of Georgia.)

Abstract

Time-varying energy and protein levels in broiler feed raise profit considerably above feeding at constant levels. To accurately set profit-maximizing levels of feed ingredients, nonlinear biological response functions are employed. Nonlinear programming allows solution for optimal energy, protein, and ingredient levels for given prices, but may be too complex for industry-wide use. However, separable linear programming can approximate the optimal solution without significant loss of profit. Linear programming is common in broiler feed formulation, so producers can adopt this technique with existing technology. The potential increase in profits might well ensure the economic survival of marginal firms. ©1994 by John Wiley & Sons, Inc.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:agribz:v:10:y:1994:i:5:p:389-399
    DOI: 10.1002/1520-6297(199409/10)10:5<389::AID-AGR2720100504>3.0.CO;2-I
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Miller, Bill R. & Arraes, Ronaldo de Albuquerque e & Pesti, Gene M., 1989. "Formulation Of Broiler Finishing Rations By Quadratic Programming," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(1), pages 1-10, July.
    2. Jean-Paul Chavas & James Kliebenstein & Thomas D. Crenshaw, 1985. "Modeling Dynamic Agricultural Production Response: The Case of Swine Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 636-646.
    3. Oscar R. Burt, 1993. "Decision Rules for the Dynamic Animal Feeding Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 190-202.
    4. Hovav Talpaz & Shmuel Hurwitz & Jose R. de la Torre & Peter J. H. Sharpe, 1988. "Economic Optimization of a Growth Trajectory for Broilers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 382-390.
    5. Hertzler, Greg, 1988. "Dynamically Optimal And Approximately Optimal Beef Cattle Diets Formulated By Nonlinear Programming," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(1), pages 1-11, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Costa, Ecio de Farias & Houston, Jack E. & Gunter, Lewell F. & Pesti, Gene M., 2002. "Parts Or Whole? Efficient Broiler Production Responses To Consumer-Driven Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(1), pages 1-10, March.
    2. 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.
    3. Costa, Ecio de Farias & Houston, Jack E. & Pesti, Gene M., 2001. "How Does Cottonseed Meal Compare As An Alternative Protein Source To Soybean Meal In Poultry Production?," Faculty Series 16648, University of Georgia, Department of Agricultural and Applied Economics.
    4. Costa, Ecio de Farias & Houston, Jack E. & Gunter, Lewell F. & Pesti, Gene M., 2002. "Incorporating Consumer Demand In Broiler Profit-Maximization Modeling," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(3), pages 1-10, November.
    5. Costa, Ecio de Farias & Miller, Bill R. & Houston, Jack E. & Pesti, Gene M., 2000. "Production And Profitability Responses To Alternative Protein Sources In Broiler Rations," Faculty Series 16705, University of Georgia, Department of Agricultural and Applied Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trapp, James N., 1989. "The Dawning Of The Age Of Dynamic Theory: Its Implications For Agricultural Economics Research And Teaching," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-11, July.
    2. Roemen, J.H.J. & de Klein, J., 1998. "An optimal delivery strategy for porkers with heterogeneity and dependent prices," Other publications TiSEM 4775b203-6880-43c8-b1c7-3, Tilburg University, School of Economics and Management.
    3. Hennessy, David A., 2006. "Feeding and the Equilibrium Feeder Animal Price-Weight Schedule," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-23, August.
    4. Roemen, J.H.J. & de Klein, J., 1998. "An optimal delivery strategy for porkers with heterogeneity and dependent prices," Research Memorandum FEW 763, Tilburg University, School of Economics and Management.
    5. Chen, Gang & Roberts, Matthew C., 2004. "A Dynamic Programming Framework For Using Weather Derivatives To Manage Dairy Profit Risk," 2004 Annual meeting, August 1-4, Denver, CO 20171, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Chao, Hui-Ping, 1998. "Regime Switching In Us Livestock Cycles," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20824, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Leen, Frederik & Van den Broeke, Alice & Aluwé, Marijke & Ludwig, Lauwers & Sam, Millet & Jef, Van Meensel, 2017. "Simulation Modelling To Provide Insights Into The Optimization Of Delivery Weights Of Finisher Pigs," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261272, European Association of Agricultural Economists.
    8. Boland, Michael A. & Foster, Kenneth A. & Preckel, Paul V., 1999. "Nutrition And The Economics Of Swine Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-14, April.
    9. Mayer, D. G. & Belward, J. A. & Burrage, K., 1996. "Use of advanced techniques to optimize a multi-dimensional dairy model," Agricultural Systems, Elsevier, vol. 50(3), pages 239-253.
    10. Lawrence, John D. & Kaylen, Michael S., 1990. "Risk Management For Livestock Producers: Hedging And Contract Production," Staff Papers 13496, University of Minnesota, Department of Applied Economics.
    11. Susana MEJIA & Andres Ramirez HASSAN, 2016. "Determining the optimal selling time of cattle: A stochastic dynamic programming approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(11), pages 517-527.
    12. Blank, Steven C. & Orloff, Steve B. & Putnam, Daniel H., 2001. "Sequential Stochastic Production Decisions For A Perennial Crop: The Yield/Quality Tradeoff For Alfalfa Hay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-17, July.
    13. Li, Ning & Preckel, Paul V. & Foster, Kenneth A. & Schinckel, Allan P., 2003. "Analysis of Economically Optimal Nutrition and Marketing Strategies for Paylean® Usage in Hog Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-15, August.
    14. Govindasamy, Ramu & Lie, Donald & Kliebenstein, James, 1992. "Economic Impact of PST on a Farrow-to-Finish Hog Farm Operation," WAEA/ WFEA Conference Archive (1929-1995) 321369, Western Agricultural Economics Association.
    15. Greer, Heather C. & Trapp, James N., 2000. "Impact Of Alternative Grid Pricing Structures On Cattle Marketing Decisions," 2000 Conference, April 17-18 2000, Chicago, Illinois 18926, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    16. Bernardo, Daniel J. & Conner, J. Richard, 1989. "Methodological Issues in Range Economics: Modeling the Range-Livestock Production System," WAEA/ WFEA Conference Archive (1929-1995) 244846, Western Agricultural Economics Association.
    17. Elisa Gatto & Guido Signorino, 2014. "Crop-diversity and Cereal Production under the CAP Reform: Evidence from Italy," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(3), pages 35-50.
    18. Roka, Fritz M. & Hoag, Dana L., 1996. "Manure Value And Liveweight Swine Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(1), pages 1-10, July.
    19. Sara Rodríguez & Lluis Plà & Javier Faulin, 2014. "New opportunities in operations research to improve pork supply chain efficiency," Annals of Operations Research, Springer, vol. 219(1), pages 5-23, August.
    20. Kuchler, Fred & McClelland, John, 1989. "Issues Raised by New Agricultural Technologies: Livestock Growth Hormones," Agricultural Economic Reports 308071, United States Department of Agriculture, Economic Research Service.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:10:y:1994:i:5:p:389-399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.