Estimated of production and costs functions of broiler breeding farms in the province of Dhamar

Abstract

The main aim of this study was to estimate the production and cost functions of the randomly selected chicken farms in Dhamar province that classified into three productive capacities of which the first one is formed of 20 farms (5000-9500) chicken, second 18 (10000) , and third 15(>10000) chicken. Several sub-goals were also tackled including: the determination of economic efficiency of resources used in the production process of chickens and optimal size of production that maximize profit. The results show that the use of chicks factor was less-utilized than required to maximize profit, where the utility index for all three capacities including total sample is 6.7, 5.3 , 4.9, and 5.9 respectively, While there is a possibility to maximize profit by increasing this factor to the level equal between the marginal value product (MVP) and marginal factor cost. the optimal size of production for total sample is estimated at (10.619) ton/Field of chicken ,while ,the size of production that maximizes the profit was estimated at (13.620)ton/ Field, which is more than the actual level of output by (1.739)ton with value of (628.937)th.YR.. The results also show that the most important productive factors affecting the production function and considered common for the three studied productive capacities including the total sample are: the number of chicks, the amount of feed, the value of heating , electricity and water. According to the average total cost of production, the third productive capacity came first with (336) TH. YR/Ton, followed by the first one with (405)TH.YR/Ton of chicken, then the second productive capacity occupied the third place with (427) TH.YR/Ton of chicken. the study recommends to use the optimal quantities of resources that will maximizes the profit with the need to rationalize the use of inputs, dealing with the reliable sources for getting inputs and stick to the quality and specifications. The government and concerned agencies are seriously invited to work closely with chicken breeders to show them the most effective principals and technologies required to improve their abilities in management resources.