Using Linear Mathematical Programming Model to Reduce Feed Cost of Broiler Farms

Abstract

This research aims at shedding light on the effectiveness of using linear mathematical programming models in the production management of Broiler farms, and proposing the optimal low-cost Broiler feed mix within the constraints of the available feed resources. The research also aims at studying the effect of the low cost of the mixt on the proposed financial evaluation indicators. Primary data were collected through a random sample of broiler chicken farmers to obtain data related to the production costs, revenues and technical operations during the production season of 2018 in the governorate of Swaida, Syria. The results showed that the total cost of one ton of the proposed starting batch, obtained by using the linear programming model, was 196,953.93 SYP/ton, meaning the cost decreased by 16.2%. While the total cost of one ton of the final mix proposed for the linear programming model amounted to 191324.8 SYP/ton, the cost decreased by 16.8%. Through analyzing the impact of feed costs’ decline by 16% on the financial assessment indicators of the sample, it can be noted that the variable expenses decreased to 7,205,866 SYP/farm in the summer production cycle and to 8,150,358.4 SYP/farm in the winter production cycle. The value of the net income index and the gross margin increased to 9,214,777.9 SYP/farm and 1,206,278.04 SYP/farm respectively for the mix obtained by the programming model. The revenue to costs ratio increased to 1.123%, and the operating ratio decreased to 0.89%. Moreover, it was noted that the profitability of the invested SYP increased to 12.3%, and the time of the variable assets turnover decreased to 312.66 days.