Assessing the Competitiveness and Policy Impact on Broiler Production in Kurdistan Province, Iran: A Policy Analysis Matrix Approach

Document Type : Research Article-en

Authors

M. Haji-Rahimi

P. Alizadeh

F. Sharifi

Department of Agricultural Economics, Faculty of Agriculture, University of Kurdistan, Sanandaj, Iran

https://doi.org/10.22067/jead.2024.90678.1311

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

Broiler chicken

Comparative advantage

Export competitiveness

Policy Analysis Matrix

Subjects

• Agricultural Economics

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©2024 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0)

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