Producer Support Policy Effects on Self-Sufficiency Coefficient of Chicken Meat in Iran

In this study, the index of producer supports was investigated among the development programs in period 1989-2011. Then self-sufficiency index in chicken meat during this period was calculated and its properties were evaluated. In this study the main challenge is whether the producers’ support in Iran will lead to improvements in production and self-sufficiency coefficients or not. For this purpose the variables stationary was investigated for estimating self-sufficiency model and after determining the optimal lag of self-sufficiency and Producer Support Estimate (PSE), then Granger causality test and finally the VAR model were estimated. The results showed that changes in the level of self-sufficiency index of chicken meat in the short term in each period is dependent on the support of the producers of chicken meat in the previous period. The estimated coefficient of PSE showed that in short term, PSE index of chicken meat producers has not been a suitable efficiency in changes of self-sufficiency index. The results of impulse response function showed that the effects of shocks to self-sufficiency index due to changes support policies in different periods is varied and this effect will be adjusted after seven periods.