Estimation of cost function of broiler farms in Sanandaj Township

Food regimes of the most people in the world particularly in developing countries are deficient in protein. Since the animal protein play a main role in human nutrition، therefore، its quality and quantity should be considered. So it is necessary to study the cost structure as well as the potentials of the broiler industry. The current study attempted to investigate the share of major inputs utilized in the broiler industry. Data collected from 74 broiler farms using simple random sampling method from Sanandaj for the agricultural year 2012-13. The results showed that، feed cost with 61. 15 per cent ranked first among others variable inputs in study area. In addition، the result for Morishima elasticity of substitution showed that، relative share cost is increasing. And average ES for all data follow increasing returns to scale. But this can not be extending to all the cases stalwartly. So، it is not necessary to emphasis on increasing to the scale but other criteria such as management methods should be considered in the large broiler farms.