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An Interactive Decision Model Integrating Broiler Production and Processing Responsiveness to Consumer and Producer Prices

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

Abstract

In the vertically integrated poultry industry, profit maximization for broiler integrators must incorporate feed formulation, broiler production, and broiler processing operations to determine optimally sized birds for the most profitable market segments. Here, substituting cottonseed meal (CSM) for soybean meal (SBM) in broiler feed is evaluated under changing input and product market conditions, where there are two processing options - whole carcass vs. cut-up parts. For the prices analyzed, CSM-fed broilers earn higher profits for whole carcass processing, while SBM-fed broilers earn higher returns for cut-up parts processing. Optimal protein levels used in the feed processes exceed currently recommended levels.

Suggested Citation

  • Costa, Ecio de Farias & Houston, Jack E., 2006. "An Interactive Decision Model Integrating Broiler Production and Processing Responsiveness to Consumer and Producer Prices," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25295, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25295
    DOI: 10.22004/ag.econ.25295
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    File URL: https://ageconsearch.umn.edu/record/25295/files/pp060702.pdf
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    References listed on IDEAS

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    1. Costa, Ecio F. & Miller, Bill R. & Houston, Jack E. & Pesti, Gene M., 2001. "Production and Profitability Responses to Alternative Protein Sources and Levels in Broiler Rations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(3), pages 567-581, December.
    2. 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.
    3. 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.
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    1. 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.
    2. 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.

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    Keywords

    Livestock Production/Industries;

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