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Consumer-Driven Profit Maximization in Broiler Production and Processing

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  • Costa, Ecio de Farias
  • Houston, Jack E.

Abstract

– Increased emphasis on consumer markets in broiler profitmaximizing modeling generates results that differ from those by traditional profit-maximization models. This approach reveals that the adoption of step pricing and consideration of marketing options (examples of responsiveness to consumers) affect the optimal feed formulation levels and types of broiler production to generate maximum profitability. The adoption of step pricing attests that higher profits can be obtained for targeted weights only if premium prices for broiler products are contracted.

Suggested Citation

  • Costa, Ecio de Farias & Houston, Jack E., 2004. "Consumer-Driven Profit Maximization in Broiler Production and Processing," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 42(1), January.
    • Handle: RePEc:ags:revi24:341983
    DOI: 10.22004/ag.econ.341983
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    References listed on IDEAS

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    1. Costa, Ecio F. & Miller, Bill R. & Houston, Jack E. & Pesti, Gene M., 2001. "Production and Profitability Responses to Alternative Protein Sources and Levels in Broiler Rations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(3), pages 567-581, December.
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    1. Costa, Ecio de Farias & Houston, Jack E. & Gunter, Lewell F. & Pesti, Gene M., 2002. "Incorporating Consumer Demand In Broiler Profit-Maximization Modeling," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(3), pages 1-10, November.
    2. Costa, Ecio de Farias & Houston, Jack E., 2006. "An Interactive Decision Model Integrating Broiler Production and Processing Responsiveness to Consumer and Producer Prices," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25295, International Association of Agricultural Economists.

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    Keywords

    Marketing;

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