Provincial Analysis of Broiler Husbandry Industry Performance

In this study, performances of the Iranian broiler husbandry industry and its growth potential have been calculated applying Total Factor Productivity (TFP) Tornqvist-Theil index to the data collected by the Iranian Statistical Center in 1990, 1994, 1995 and 2001. The results show that TFP index has been improved from 85.5 percent to 99.1 & 108.6 percent in 1994 and 1995 respectively. But its performance has been declined in 2001 by 13 percent due to implementing “Exchange Rate Unification” policy in 1990. In other words, sudden elimination of indirect subsidies caused technical efficiency of industry to decline. In addition, local comparison of chicken meat producing firms shows that difference between low and high performance provinces has been increased from 12 percent in 1994 to 35 percent in 2001. It implies that non symmetric industry growth has been carried out in this period and there is deep gap between average production costs of chicken meat production in different Iran provinces.