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Production and Profitability Responses to Alternative Protein Sources and Levels in Broiler Rations

Ecio Costa, Bill Miller, Jack E. Houston and Gene M. Pesti

Journal of Agricultural and Applied Economics, 2001, vol. 33, issue 3, 567-581

Abstract: Profitability of using alternative protein sources in broiler feed is investigated through the development of a two-stage mathematical program that optimizes broiler production. A case study of peanut meal vs. soybean meal is examined. Value of marginal product concepts incorporated in this model permit analysis of demand adjustments before decisions on the production process occur. Given reported input and output prices, results indicate that soybean meal is generally more profitable than peanut meal. Peanut meal can be more profitable at higher dietary protein levels fed to broilers processed into whole carcass or at relatively higher prices for soybean meal.

Date: 2001
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