Measuring the Profitability Efficiency of Broiler Breeding Projects in Iraq (Baghdad Governorate)

Abstract

The study aimed to assess the efficiency of the stochastic profit boundaries and identify the main economic and social factors affecting the profits of the governorate of Baghdad’s broiler chickens. The model’s parameters were assessed based on the maximum likelihood (ML) method and using border programmer 4.1. The study used the initial data from field sources collected randomly from 64 of the 550 total projects, representing 11.64%. To determine the relationship between total profit and input prices, averages were taken (total production of feeds, cabling, medicines, vaccines, water, and electricity), and social factors such as age, experience, and education were included in the inefficiency model. The estimated coefficients gave the expected sign, which was significant at a 5% level, except for water and electricity variables, which were non-significant. The results revealed that broiler chicken breeders in a given area achieved an average profit efficiency of 76.53%, enabling breeders to increase their profits by 23.47% to achieve optimal efficiency. The results of the Pareto analysis also indicated that the most critical problems facing broiler breeders are importing large quantities of frozen chicken meat and selling it at low prices, as well as the high prices of production requirements, especially feed. Accordingly, breeders must develop their productive abilities in managing inputs to maximize profit efficiency.