Feasibility Analyses of Integrated Broiler Production

Abstract

The major obstacles in the development of broiler raising is the expensive price of feed and the fl uctuative price of DOCs. The cheap price of imported leg quarters reduces the competitiveness of the local broilers. Therefore, an eff ort to increase production effi ciency is needed through integration between broiler raising and corn farmers and feed producers (integrated farming). The purpose of this study is to analyze the feasibility of integrating broiler raising with corn cultivation and feed production. Besides that, a simulation was conducted to analyze the eff ects of DOC price changes, broiler price and production capacity. The analyses showed that integrated farming and a mere combination between broiler raising and feed factory of a 10,000 bird capacity is not fi nancially feasible. Increasing the production to 25,000 broiler chickens will make the integrated farming fi nancially feasible. Unintegrated broiler raising is relatively sensitive to broiler price decreases and DOC price increases compared to integrated farming.