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ESTIMATION OF RESOURCE USE EFFICIENCY IN
BROILER FARMS: A MARGINAL ANALYSIS APPROACH


Torki Mejhim Al-fawwaz

Ali AL-Sharafat

ABSTRACT

This study aimed at determining the economic efficiency of resource use in broiler farms in Jordan. Determining economic resource-use efficiency will provide practical tools for decision makers to apply production policies needed to improve broiler production. The marginal analysis procedure was applied to evaluate the economic efficiency of the investigated farms and to determine the optimum input to use. The economic efficiency of resource use was determined by computing the ratio of the Marginal Value Product (MVP) to the Marginal Factor Cost (MFC). A multiple regression model for the corresponding inputs was developed to obtain the parameters for the measurements (elasticities) of resource use efficiency of factor  inputs.The results of the study revealed that the utilization of the investigated input  factors wasinefficient since the ratio of MVP to MFC is more or less than unity for all the included inputs. Government should provide subsidized inputs to farmers along with proper extension services, which will help in enhancing productivity and profitability. In addition, subsidized credit facilities to farmers may catalyze this process. In addition, farmers need to adjust the usage of the resources, appropriately. Feed, labor, and equipment should be re-adjusted downwards

Key words: Resource use efficiency, broiler farms. input elasticity, marginal procedure, marginal physical product, marginal factor cost.