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Parts Or Whole? Efficient Broiler Production Responses To Consumer-Driven Markets

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  • Costa, Ecio de Farias
  • Houston, Jack E.
  • Gunter, Lewell F.
  • Pesti, Gene M.

Abstract

Adoption of consumer-market-oriented production on broiler profit-maximizing modeling generates results that differ from those traditionally used in profit maximization for broiler production. This model shows that the adoption of step-pricing and marketing options (examples of consumer-market-oriented decisions) modify the optimal levels and types of broiler production to generate maximum profitability. Thus optimal protein levels in the feed formulated exceed currently recommended levels and alternative protein sources are also allocated. The adoption of step-pricing to respond to consumer-market-oriented decisions shows that higher profits can be obtained for targeted weights only if premium prices for output are allocated.

Suggested Citation

  • 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(01), March.
  • Handle: RePEc:ags:jlofdr:27639
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    File URL: http://purl.umn.edu/27639
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    References listed on IDEAS

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    1. 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.
    2. Allison, John R. & Baird, D. M., 1974. "Least-Cost Livestock Production Rations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 6(02), pages 41-45, December.
    3. 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.
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    Keywords

    Agribusiness; Consumer/Household Economics;

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