Comparing the profitability of organic and conventional broiler production

Cobanoglu, FKucukyilmaz, KCinar, MBozkurt, MCatli, A. UBintas, E

Recently, organic broiler chicken production has received more attention worldwide. This study has carried out an economic analysis to compare the profitability of organic versus conventional growing systems per unit of broiler meat production. To achieve this goal, 400 slow-growing broiler chickens (Hubbard Red-JA) were reared in an organic production system, and the same number of fast-growing birds (Ross-308) in a conventional system. The profitability was deduced with an economic analysis that compared total costs and net income. Results showed that organic broiler meat can cost from 70% to 86% more with respect to variable and fixed costs when compared with conventional production. The main reasons for the higher cost of organic broiler meat were feed, labor, certification, and outdoor area maintenance. The proportion of fixed costs in total costs was 1.54% in the conventional system and 7.48% in the organic system. The net income per kg of chicken meat in the organic system was € 0.75, which is 180% higher than chicken meat grown in a conventional system (€ 0.27); however, the price of organic broiler meat sold in the present study was twice as high as that obtained for conventional broilers. In conclusion, organic broiler meat production was more profitable than conventional rearing.(AU)

1. Broiler
2. conventional
3. organic
4. total costs
5. net income