Analyzing Relationship between Production Costs, Profitability and Bankruptcy of Poultry Cooperatives in Sistan and Baluchestan Province

Abstract

A Gross profit function for computing confidence intervals for functions of maximum likelihood modeling and delta method was used to compute the confidence interval for a change in the probability function to bankruptcy prediction. Data on the average consumption of inputs and the production, in a 30,000 poultry segments, Summing up through the establishment of specialized panels group of poultry farmers was gained. Also the price of live poultry, soybean feed, corn and day-old chicks were extracted from the company support animal country information network website to form of daily. Profit and loss statement poultry units, the composition of production costs and cost per kg for three categories of poultry according to the financial structure were calculated. The relationship between the price of Poultry and the probability of bankruptcy in three poultry farms in the price range of 35000 Rials to 60000 Rials was calculated. The results showed that, in the average price of alive poultry (50164 Rials) investigated, the probability of bankruptcy poultry farms lack working capital and have banking facilities installments was 73%, Poultry farms with working capital and payments for providing banking facilities, was 32% and poultry farms that they had adequate financial resources and no bank debt, probability of bankruptcy for them was almost5%. Providing working capital for poultry and poultry processing plants, Removing brokers, and direct sales of poultry to slaughterhouses through the Poultry Unions, monitoring the price of the main inputs and adjusting the market for two inputs of maize and soybeans, will play an important role in reducing the risk of bankruptcy of poultry cooperatives in Sistan and Baluchestan province

Keywords

• the poultry industry؛ production costs؛ profitable
• bankruptcyو sistan and bluchestan