Factors affecting the costs of broiler chicken production in light of urgent international variables

Abstract

The study aims to analyze the costs of broiler chicken production in the Fayoum governorate, and in particular the effects that the Russia–Ukraine war has had on production costs. The results indicate increased production costs due to the war and a decreased net return for the three production capacities and the sample average: the return index on invested dollars before the war was 0.71, 0.89, 1.0, and 0.87, respectively; however, this decreased after the war to 0.35, 0.53, 0.66, and 0.51, respectively. The war has led to an increase of 43.93% in the minimum price as the production costs have risen. The value of the price elasticity of supply was about 0.233 at the minimum price and 0.041 at the current price level. If the prevailing price increases by 10% to become $2.13 thousand per ton, the price elasticity of supply becomes about 0.037. The study recommends producing cheap, high-quality, non-traditional feed and focusing on small production capacities. It also suggests integrating and developing them to increase profits. KEYWORDS capacity savings, cost functions, economic efficiency, equivalence price, quantitative equivalence, supply function