An Interactive Decision Model Integrating Broiler Production and Processing Responsiveness to Consumer and Producer Prices

In the vertically integrated poultry industry, profit maximization for broiler integrators must incorporate feed formulation, broiler production, and broiler processing operations to determine optimally sized birds for the most profitable market segments. Here, substituting cottonseed meal (CSM) for soybean meal (SBM) in broiler feed is evaluated under changing input and product market conditions, where there are two processing options - whole carcass vs. cut-up parts. For the prices analyzed, CSM-fed broilers earn higher profits for whole carcass processing, while SBM-fed broilers earn higher returns for cut-up parts processing. Optimal protein levels used in the feed processes exceed currently recommended levels