PARTS OR WHOLE? EFFICIENT BROILER PRODUCTION RESPONSES TO CONSUMER-DRIVEN MARKETS

Ecio Costa, Jack E. Houston, Lewell F. Gunter and Gene M. Pesti

Journal of Food Distribution Research, 2002, vol. 33, issue 01, 10

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.

Keywords: Agribusiness; Consumer/Household Economics (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlofdr:27639

DOI: 10.22004/ag.econ.27639

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