Document Type : Research Article-en
Authors
Department of Agricultural Economics, Faculty of Agriculture, University of Kurdistan, Sanandaj, Iran
Abstract
The broiler chicken industry is a vital agricultural subsector in Kurdistan Province, Iran, with 716 production units in the province and a 5% growth from 2019 to 2024. However, there is no study to evaluate the comparative advantage indices or competitive capacity of broiler chicken production in Kurdistan Province. This study aims to assess these factors using the Policy Analysis Matrix (PAM) for 2023. Findings indicate that Kurdistan Province has a comparative advantage in broiler chicken production, as shown by the Domestic Resource Cost (DRC) ratio and Social Benefit-Cost Ratio (SBCR), across all production capacities. The Nominal Protection Coefficient (NPC) for the product reveals that the market price of live broiler chicken is lower than its shadow price, effectively imposing indirect taxation on producers. Conversely, the NPC for inputs shows that input shadow prices exceed market prices, suggesting indirect subsidies for poultry inputs. The Effective Protection Coefficient (EPC), which combines these effects, indicates effective government support for the industry. Competitiveness indices suggest that broiler chicken production in Kurdistan Province is viable both domestically and internationally. The findings suggest that the broiler chicken industry of Kurdistan could compete in regional markets, particularly Iraq market, even without supportive policies in form of input subsidies, provided price suppression is eliminated and market-based pricing is implemented. Thereby, this study suggested transitioning from interventionist policies to establishing a transparent and competitive market infrastructure to ensure sustainable growth in broiler chicken production.
Keywords
Main Subjects
©2024 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0)
- Beckmann, J., & Czudaj, R.L. (2013). Oil prices and effective dollar exchange rates. International Review of Economics & Finance, 27(C), 621-636. https://doi.org/10.1016/j.iref.2012.12.002
- Benalywa, Z.A., Ismail, M.M., Shamsudin, M.N., & Yusop, Z. (2019). Assessing the comparative advantage of broiler production in Peninsular Malaysia using policy analysis matrix. Tropical animal health and production, 51, 321-327. https://doi.org/10.1007/s11250-018-1690-8
- Beres, D., & Mészáros, K. (2011). Competitiveness and comparative advantages in agriculture (livestock approach). Problems of World Agriculture (Problemy Rolnictwa Światowego), 11(26), 1-9. https://ideas.repec.org/a/ags/polpwa/195333.html
- Bowers, J. (1995). Sustainability, agriculture, and agricultural policy. Environment and Planning A, 27(8), 1231-1243.
- Bruno, M. (1972). Domestic resource costs and effective protection: Clarification and synthesis. Journal of Political Economy, 80(1), 16-33. https://www.jstor.org/stable/1830128
- Central Bank of the Islamic Republic of Iran (CBI). (2023). Annual Review for 1401 (2022/23). https://cbi.ir/simplelist/AnnualReview_en.aspx
- Ezeh, C.I., Anyiro, C.O., & Chukwu, J.A. (2012). Technical efficiency in poultry broiler production in Umuahia Capital Territory of Abia State, Nigeria. Greener Journal of Agricultural Sciences, 2(1), 001-007. https://gjournals.org/GJAS/archive/vol-2-1-jan-2012/ezeh-et-al.html
- Elsedig, E.A.A., Mohd, M.I., & Fatimah, M.A. (2015). Assessing the competitiveness and comparative advantage of broiler production in Johor using policy analysis matrix. International Food Research Journal, 22, 1-20. https://www.cabidigitallibrary.org/doi/pdf/10.5555 /20153093595
- Food and Agriculture Organization (FAO). (2024). FAOSTAT, Crops and livestock products. https://www.fao.org/faostat/en/#data/QCL
- Haji-Rahim, M. (2015). A social profit analysis of self-sufficiency policy for wheat production in Iran. International Journal of Scientific Management and Development, 3(1), 807-810. https://ideas.repec.org/a/ags/ijamad/246098.html
- Hasanvand, M., Karbasi, A., & Darijani, A. (2010). An Analysis of the Relative Advantage of Livestock Nomads in Lorestan Province, A Case Study of Khorramabad, Eighth Biennial Agriculture Economics Conference of Iran, P:889-900. (In Persian). https://doi.org/10.22059/jrur.2021.308771.1546
- Iran Feed Industry Association. (IRFIA). (2022). Iran Animal Feed Market, 3rd Edition. https://irfia.ir/shfolder/pdf/FM2022.pdf
- Karaman, S., Taşcıoğlu, Y., & Bulut, O.D. (2023). Profitability and cost analysis for contract broiler production in Turkey. Animals, 13(13), 2072. https://doi.org/10.3390/ani13132072
- Mashaiekhi, S., & Hajizadeh Fallah, M. (2011). The study on the effective factors in Chicken meat market in Iran: An application of Vector Autoregression model. Economic Research Journal 11(40), 131-154. (In Persian). https://joer.atu.ac.ir/article_2567_en.html
- Mirzaei, A., Azarm, H., Valizadeh, N., Sobhani, S.M.J., & Ziaee, A. (2023). The effects of price explosion and compensatory policies on food security: The Case of chicken meat consumers in Iran. Iran Agricultural Research, 42(2), 49-58. (In Persian). https://doi.org/10.22099/iar.2024.48881. 1565
- Mohammadi, Y., Shalalvand, M., & Rezapour, K. (2018). Determining an optimal agronomic cropping pattern in productive units by analyzing the regional and national comparative advantages. Iranian Journal of Agricultural Economics and Development Research, 49-2(4), 719-734. (In Persian). https://dor.isc.ac/dor/20.1001.1.20084838.1397.49.4.12.8
- Moreki, J.C. (2011). Challenges in small-scale broiler production in Botswana. Journal of Agricultural Technology, 7(6), 1579-1587.
- Moslehi, H. (2020). The collection of world experience publications in the field of agriculture and natural resources; Comparing the status of broiler production in Iran with other countries (No. 19), 1 Edition. Publication of Agricultural Tehran. Iran. (In Persian)
- Nikzad, M., Hosseini, S.S., Salami, H., Chizari, A., & Ahady, A. (2022). Evaluation and analysis of comparative advantages, competitiveness and the effects of supportive policies on selected products of Afghanistan’s economic-agricultural zones. Iranian Journal of Agricultural Economics and Development Research, 53(2), 301-323. (In Persian). https://doi.org/10.22059/ijaedr. 2021.315282.668985
- Onyoni, R., & Basil, D. (2022). Enhancing the Competitiveness of Kenya's Livestock Products in the African Continental Free Trade Area: Revealed Comparative Advantage. Kenya Institute for Public Policy Research and Analysis. ZDB-ID 2982267-1. - Vol. no. 290.
- Pilusa, K. V., Belete, A., & Baloi, V.A. (2020). Analyzing chicken meat production comparative advantage of South Africa. African Journal of Agricultural Research, 16(6), 843-849. https://doi.org/10.5897/AJAR2019.14604
- Rahmani, R., & Layani, Gh. (2023). Investigating the economic effects of government policies on broiler production units in Fars province. Journal of Agricultural Economic Research, 15(3), 28-43. (In Persian). https://doi.org/10.30495/jae.2023.30100.2328
- Rezaee, A., Chizari, A., & Nakhaei, N. (2010). Investigation of protective policies & comparative advantage of production & export of onion: (Case study: Esfahan). Journal of Agricultural Economics and Development, 24, 1-20. https://doi.org/10.22067/jead2.v1389i2.3929
- Saptana, S., Sayekti, AL., Perwita, AD., Sayaka, B., Gunawan, E., & Sukmaya, SG. (2022) Analysis of competitive and comparative advantages of potato production in Indonesia. PLOS One, 17(2), e0263633. https://doi.org/10.1371/journal.pone
- Shahbazi, A., & Javanbakht, O. (2019). Studying the production structure of poultry units in Masjed Soleyman town. Journal of Animal Science Research, 29(2), 15-29. (In Persian). https://animalscience.tabrizu.ac.ir/article_9485.html
- Youzi, F., Ghaderzadeh, H., & Farzinpour, A. (2022). Economic analysis of production period of broiler breeding in Kurdistan province: A case of Sanandaj, Kamyaran and Divandareh cities. Iranian Journal of Animal Science Research, 14(2), 255-266. (In Persian). https://dor.isc.ac/dor/20.1001.1.20083106.1401.14.2.9.2
- World Population Review (2024). Chicken Consumption by Country. Available at: https://worldpopulationreview.com/country-rankings/chicken-consumption-by-country
Send comment about this article