Author(s): Mohammad H. Al-Qunaibet, Essam A. Aboalwafa and Khalid M. Al-Fuhaid
Article publication date: 1997-03-01
Vol. 15 No. 1 (yearly), pp. 207-221.
118
Keywords
broiler projects, production costs, Saudi Arabia
Abstract
This paper analyzes production costs' structure and the relative importance of each cost item in broiler projects using a sample of 38 projects that make up 88% of the total number of broiler projects in the Central Region, Saudi Arabia in 1992. These projects were classified in three categories according to the final product:
1) live broiler projects: with 24 projects,
2) live and processed broiler projects: with 7 projects, and
3) processed broiler projects: with 7 projects.
Results showed that the average total cost (ATC) for a live broiler is 5.75 Saudi Riyals (SR) broiler compared to SR 4.036/kg of live broiler. In live and processed broiler projects the ATC is SR 6.82/broiler and 5.907SR/kg, respectively. In processed broiler projects the ATC is 6.614 SR/broiler and 7.53 SR/kg. Results showed that the ATC decreases as production capacity increases confirming the concept of increasing returns of scale.