Interactive profit maximization modeling for poultry production: a decision model application to soybean and cottonseed meal

Resumen

Profitability of substituting cottonseed meal (CSM) for soybean meal (SBM) in broiler feed is evaluated using a model that optimizes broiler production and processing under changing market conditions. The profit maximization model therefore incorporates feed formulation, broiler production, and broiler processing to determine what feedstuffs yield the heaviest birds to be processed at the lowest cost and for the most profitable processed parts. The optimal solution is determined for scenarios where there are two processing options: whole carcass vs. cut-up parts. For the case-study prices analyzed, CSM-fed broilers may earn higher profits for whole carcass processing, while SBM-fed broilers earn higher returns for cutup parts processing. Price mapping analysis indicates that for given fluctuations ofCSM and SBM prices, using CSM in cut-up parts processing can also be profitable.