Abstract
This paper analyzes production costs' structure and the relative importance of each cost item in broiler projects using a sample of 38 projects that make up 88% of the total number of broiler projects in the Central Region, Saudi Arabia in 1992. These projects were classified into three categories according to the final product: (1) live broiler projects: with 24 projects, (2) live and processed broiler projects: with 7 projects, and (3) processed broiler projects: with 7 projects.
Results showed that the average total cost (ATC) for a live broiler is 5.72 Saudi Riyals (SR) broiler compared to SR 4.036/kg of live broiler. In live and processed broiler projects the ATC is SR 6.82/ broiler and 5.907 SR/kg, respectively. In proecessed broiler projects the ATC is 6.614 SR/broiler and 7.53 SR/kg. Results showed that the ATC decreases as production capacity increases confirming the concept of increasing returns to scale.