Evaluating Broiler Chicken Value Chains Efficiency in Qalyubia Governorate

Document Type : Original Article

Authors

1 Faculty of Agriculture - Benha University

2 Saad Ben Moaz Street, Toukh, Qalyubia, Egypt

Abstract

This study investigates broiler chicken production and marketing efficiency in Qalyubia Governorate, Egypt. Data analysis from 2012 to 2022 reveals no significant changes in the number of broiler chicken farms or operational houses, suggesting relative stability. However, capacity utilization remains below average, indicating room for improvement. Production costs increase with farm size, while sales prices and revenue per 1,000 chickens follow a similar trend. An analysis of marketing channels demonstrates that wholesalers are the dominant channel, followed by slaughterhouses and retailers. While retailers offer the highest net return per ton, producers achieve greater profitability with larger production capacities across all channels.
A field study in 2023 examines marketing margins, consumer pound distribution, and marketing efficiency. Marketing margins increase throughout the value chain, with producers receiving the largest share (81%-89.6%) and retailers receiving the smallest (5.7%-8.3%). Marketing efficiency is highest for direct sales to slaughterhouses and retailers, highlighting the benefit of fewer intermediaries.
The study also analyzes economic indicators for broiler value chain actors. Broiler farms exhibit favorable profitability and return on investment. Wholesalers and retailers demonstrate strong economic efficiency with high net returns and profit margins. A partial equilibrium analysis explores the impact of government import tariffs, revealing a complex interplay of economic effects. While consumers initially benefit from lower prices, producers face substantial losses and the overall economic welfare may decline.
Finally, the study identifies critical challenges faced by producers and traders. High production input costs, disease prevalence, and limited access to financing are major production concerns. Marketing challenges include fluctuating sale prices, limited consumer demand, and exploitative pricing practices. To improve efficiency, producers propose better access to high-quality inputs, reduced production costs, and improved marketing infrastructure.
This research provides valuable insights into the broiler chicken industry in Qalyubia, highlighting areas for improvement to enhance production efficiency, profitability, and consumer access to affordable chicken.

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