Economic analysis of poultry meat production process for maximum profitability: A case study approach

Abstract

The study investigates the optimization of poultry meat production strategies at X Farms Ltd, evaluating three production strategies: dressed chicken carcasses only, four chicken parts/sets only, and a mixed strategy. The research strategy employed is a combination of qualitative, quantitative, and mathematical models development methods. The results show that while the dressed chicken carcasses strategy yields the highest total profit (N527,515,639), the mixed strategy offers the highest return on unit investment (N3828/N1000). The study highlights the importance of considering factors such as waste management, profitability, and return on investment in choosing a production strategy. The findings suggest that farmers can optimize their production strategies and ensure sustainability of their business by prioritizing their resources and market conditions. Besides, by improving efficiency and reducing meat waste, farmers can increase profitability, enhance product quality, and reduce their environmental footprint. Moreso, application of economic analysis in poultry meat production can help poultry farms respond better to changing market conditions, consumer preferences, and environmental regulations. It can as well help poultry farms improve their overall performance