Technical efficiency and its determinants: Arian broiler farms in Kurdistan province

Analyzing technical efficiency is particularly important in any economic sector, including the livestock industry and broiler production. By analyzing the efficiency of units, it is possible to help improve the use of resources and increase domestic production. Given the special importance of the livestock and broiler production industry in the country, it is necessary to analyzing technical efficiency and optimizing production in this area. Especially in Kurdistan province, which is one of the most important regions of broiler production in the country (3.8% of production in 2020), analyzing the efficiency and optimization of Arian race broiler production can be one of the solutions to increase domestic production and improve the country's economy. The current study aimed to assess the technical efficiency and identify the key determinants affecting the production of Arian broiler chicken in Kurdistan province using a parametric approach known as the Stochastic Frontier production function (SFP) method. 

The level of technical inefficiency within the studied units was estimated by applying the functional form of Translog and employing the maximum likelihood method. A proportional sampling technique was employed to select a sample of 21 broiler farms for the study. The selection of farms was based on a proportionate representation of the target population. Subsequently, comprehensive input-output data were collected through the administration of a structured questionnaire in the year 2021.This function has been estimated using the Ttranslog function form and with the help of the maximum likelihood method, and units have been investigated the main factors explaining the level of technical inefficiency of the studied. A proportional sampling method was used to select 21 broiler farms, and input-output data were collected by completing a questionnaire in 2021.

In this study, using the translog function, has been investigated the relationship between different variables and technical efficiency in the production of Arian broiler in Kurdistan province. The results showed that feed consumption, the number of hatchlings and the cost of medicine and health were important variables that had a direct and significant effect on the amount of meat production. In addition, the estimated technical efficiency at the farm level ranged from 43% to 90% with an average of 75%. This result indicates that the poultry farms of Kurdistan province have relatively high technical efficiency. Also, the evaluation of the factors related to inefficiency showed that among the seven investigated factors, the variables of age, experience of the poultry owner and the labor force, the length of the breeding period and the degree of mechanization of the units had a negative and significant effect on the inefficiency. The age and experience of the poultry owner, there were two of the most important influencing factors that were observed in this research.

Considering the importance of broiler feed in increasing efficiency and its high share of variable costs, measures to stabilize its price are essential. To do this, contract farming may help broiler farmers to reduce price fluctuations in the feed market. Additionally, in case of shortage, the government can intervene and regulate the feed market. Also, considering that the age and experience of the poultry owner are two important factors on production efficiency, designing appropriate training programs for them can help improve their experience and skills in broiler production.