Revista de Economia e Sociologia Rural
https://revistasober.org/article/5d8657bc0e8825ae7d82c050
Revista de Economia e Sociologia Rural
Original article

ECONOMY OF SCALE AND COST OF CHICKEN PRODUCTION IN THE MAIN PRODUCER REGIONS OF MINAS GERAIS STATE

Ângelo Antonio Ferreira; Marilia Fernandes Maciel Gomes; Joao Eustaquio Lima.

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Abstract

In Minas Gerais, chicken production is concentrated in the regions of Zona da Mata, Midwest and Triangulo Mineiro, which account for 81 % of the whole state. Ninety percent of this production comes from the integration system. At an economic level, the Brazilian chicken production has taken place from the 60s on, allowing the import of genetic material with high productivity and efficiency. Due to technology, it is necessary to study the economic aspects of the production in order to verify its efficiency and effectiveness. So, we tried to determine a production scale through which factors would be optimized. Also, the cost o f production was studied, by using the production theory. The average total cost of production was lower in the Zona da Mata, followed by Midwest and Triangulo Mineiro regions. In the regions of Zona da Mata and Triangulo Mineiro, in stratum 1 the economies of scale take place, whereas in strata 2 and 3 diseconornies occur. In the Midwest, the contrary occurs, that is, diseconomies of scale in stratum 1, and economy in strata 2 and 3. In the region of Zona da Mata, the optimum scale occurs with a production of 26203.35 kg, which equals a hangar size of 1127 m2, whereas in the Midwest and Triangulo Mineiro regions the optimum production scales reach 42888.08 kg and 34849 kg, respectively.

Keywords

Economy of scale, production costs, chicken.

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