Budget constraints and its impact on broiler production in Masjed Soleyman city

Subject Areas : Agricultural Economics Research

adalat salim odlou ¹ (Department of Agricultural Economics and Development, College of Agriculture and Natural Resources , University of Tehran, Karaj, Iran)
Reza Shakeri Bostanabad ² (Department of Agricultural Economics and Development, College of Agriculture and Natural Resources , University of Tehran, Karaj, Iran)
azar shahbazi ³ (Department of Agricultural Economics, Faculty of Agriculture, Tabriz University, Tabriz, Iran)
Mohsen Salehi Komroudi ⁴ (Department of Agricultural Economics, Faculty of Agriculture, Tabriz University, Tabriz, Iran)

Received: 2020-04-18 Accepted : 2023-02-27 Published : 2023-04-21

Keywords: broiler, production structure, indirect production function, budget constraint,

Abstract :

Introduction: Access to credits to cover the costs needed to buy production inputs at the optimal level is necessary, and budget restrictions can be an effective factor in not using the optimal economic level of production inputs. Due to the importance of the poultry industry in providing a major part of the food and protein needs of the country, the aim of this study is to investigate the effect of budget restrictions on the production of meat poultry farms in Masjid Soleyman city. Materials and Methods: In this study, the indirect production function approach was used and the required information was collected by completing 43 questionnaires at the city level in 2018. Findings: The results of the study showed that 62% of poultry units had budget restrictions of 26.62%, which caused a decrease in chicken meat production by 32.12% in this city. The return to scale was equal to 1.30, which indicates an increasing return to scale for the studied units. Conclusion: Removing the budget limit of poultry farming units can be considered an effective step towards increasing production and productivity. In this regard, it is recommended that the price policies of inputs and products, as well as the import of inputs, should be given special attention in order to reduce the problems related to the budget limitations of broiler chicken production units. For example, by determining the appropriate import tariff and subsidizing the import of these inputs, the inputs can be provided to poultry farmers cheaper.

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