Profitability and Efficiency of Poultry farms in Sistan Region

Due to the importantance of efficiency in productivity growth, the objective of this study is to investigate profit performance of poultry farms and its influencing factorsto this end, stochastic frontier production function and profit inefficiency model were estimated simultaneously in poultry farms in Sistan. For this purpose, a sample of 96 poultry farms selected and interviewed in 2014. The results showed that the average profit efficiency of poultry farmers was 54.27 percent .88.27 percent of poultry farms had lower profit efficiency. Based on the results of the frontier profit function the cost of one-day chickens, health services, food and fuel, age,level of education, years of experience, distance from city center, equipment and the number of periods in a year had positive and significant effect on profitefficiency. The results of this study indicated that access to modern poultry equipments to modernize farms, to encourage farmers to optimize resource allocation could improve profitability of poultry farmers in Sistan.