Feasibility Analyses of Integrated Broiler
Production
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.
Key words: broilers, fi nancial feasibility,
integrated farming
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