Economics of Scale for Broiler Projects in Swaida Governorate, Syria

Maya Al-Abdala(1), Safwan Abou Assaf (1), Afraa Sallowm(2)

(1). Socio Economic Directorate, Swaida Research Center, General Commission for Scientific Agricultural Research (GCSAR), Damascus, Syria.

(2). Department Of Agricultural Economics, Faculty of Agriculture, University of Damascus, Syria.

(Corresponding author: Maya Al-Abdala. E-Mail: mayaabdala6@gmail.com).

Received: 13/02/2020 Accepted: 19/03/2020


Abstract

The broiler sector in Syria is witnessing clear and continuous fluctuations in broiler production, which pays to study the structure of production costs and the optimum capacity for these projects. The research aims to estimate the optimum production volumes for broiler projects in the swaida governorate and compare them to the actual volumes. The research was carried out during the 2017-2018 season using preliminary data from a sample of broilers with 104 breeders. The research has relied on the analysis on descriptive statistical analysis methods to estimate production costs, econometrics models for estimating the cost function in the long run. The results showed that the variable costs represented 97% of the total production costs, and the cost of feed was the primary importance in the variable production costs of broiler poultry, around (69)%.The cube Function is most appropriate after entering the scale factor (number of chicks) to represent the cost function. The optimum production Scales were deviated from the actual Production in the sample, where: the difference between the maximum profit production and the optimum production of the actual production was estimated at 26734 kg and 22154 kg, which is more than the actual production as double 2.17%, 1.8%. The difference between the optimum Scale of the number’ chicks from the actual was estimated at about 17414 chicks, an increase that represented three times what amounted to about 2.68%.The difference between the value of the net profit of the Profit Maximizing Production and Optimum Size of Production from the actual amounted to more than 8.5% and 11.5%, and only 16% of the sample are not subject to this loss. The results of the breeders ’opinion showed that the most important obstacles facing the production process relate to prices, whether they are for the product or the feed price, and the study recommended the necessity of establishing feed factories in the province that depend on local resources and encouraging breeders to expand their actual production capacity..

Keyword: Optimum production, Cost function, Profit maximizing, Broiler, swaida.

Full paper in Arabic: PDF