Evaluating the Economic Feasibility of Producing Broilers on Pasture and in a Conventional Production System

Abstract

The demand for pasture raised poultry is increasing because of the perception that it is healthier and tastier than conventionally raised poultry. In order to meet this demand, some producers are considering switching from the conventional to the pasture system to take advantage of this niche market. Therefore, the objective of the study was to determine the economic viability of rearing broilers in a pastured poultry system (PPS) versus a conventional poultry system (CPS). Each of these systems was replicated three times with 60 birds per treatment in a study lasting seven weeks. Data were collected on costs of inputs, and others estimated. The mean net returns for PPS and CPS were, respectively, $56.44 and -$92.02. The break-even prices were, respectively, $10.89 for PPS and $11.87 for CPS. Also, the benefit/cost ratio was 1.103 for PPS and 0.845 for CPS. The paired t-test for the benefit/cost ratios indicated a significant difference (p< 0.05) between PPS and CPS. PPS was deemed more feasible than CPS. Hence, it was recommended that the former system is more appropriate for small and limited resource producers, and that technical assistance should be provided to them regarding PPS.

Keywords: Pastured poultry, Conventional poultry, Economic feasibility, Broilers