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Introduction
When the price of feed reaches 50,000 Tomans per kilogram, the cost structure of industrial poultry farms in Iran comes under severe pressure. Feed remains the largest cost component, and any increase in FCR (Feed Conversion Ratio) or extension of the slaughter age immediately raises the final cost. This analysis uses a reference scenario based on the Cobb 500 breed, a target live weight of 1.7 kg, a dressing percentage of 74%, and an FCR of 1.48 as the calculation basis, examining its economic implications for the meat offering price.
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Feed Consumption and Feed Cost per Bird
In this scenario, the feed consumption per bird is the product of FCR and live weight: 1.48 multiplied by 1.7 equals 2.516 kg of feed. With feed at 50,000 Tomans, the feed cost per chicken reaches approximately 125,800 Tomans. This figure is solely the feed cost, and other operational costs have not yet been included.
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Non-Feed Cost Components and Total Cost per Bird
To reach a realistic estimate, non-feed costs are considered, including day-old chick and preparation (12,000 Tomans), vaccines and medicine (6,000 Tomans), energy and ventilation (8,000 Tomans), labor and management (7,000 Tomans), and slaughter, packaging, and transportation (25,000 Tomans). The sum of these items is 58,000 Tomans. Therefore, the total cost per bird, including feed and other costs, will be 183,800 Tomans.
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Marketable Carcass Weight and Cost per Kg of Meat
Assuming a 74% dressing percentage, a chicken with a live weight of 1.7 kg yields approximately 1.258 kg of marketable carcass. Dividing the total cost per bird by the carcass weight shows that the production cost per kilogram of carcass under these conditions is about 146,105 Tomans. This figure serves as the pricing base, and the seller’s profit margin is not yet included.
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Proposed Offering Price to Customer
For economically viable sales, the meat price must cover costs and include a reasonable profit margin. Assuming a profit margin of 20% to 30%, the offering price for chicken carcass falls within a range of approximately 175,000 to 190,000 Tomans per kilogram. In practice, offering prices in the range of 180,000 to 185,000 Tomans per kg of carcass would be both profitable for the producer and acceptable to the market. In the case of selling live chickens, the base live price would be about 108,000 Tomans per kg, and with a 25% profit margin added, it would reach around 135,000 Tomans per kg for live chicken.
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Heavy-Weight Scenario and Hidden Loss
If a farmer increases the weight to 2.3 kg, the FCR typically rises to about 1.8, and feed consumption per bird increases to 4.14 kg. In this case, the feed cost per chicken becomes about 207,000 Tomans. Considering higher associated costs, the total cost per bird reaches about 270,000 Tomans. The resulting carcass weight would be approximately 1.70 kg, and the cost per kg of carcass increases to nearly 159,000 Tomans. The cost difference per bird compared to the reference scenario is over 86,000 Tomans; meaning, in a 20,000-bird house, this creates a hidden loss of about 1.72 billion Tomans per cycle.
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Conclusion and Expert Recommendations
With feed at 50,000 Tomans, the optimal economic weight in Iran remains 1.5 to 1.8 kg live weight. The production cost per kg of carcass is about 146,000 Tomans, and the logical offering price to the customer should be in the range of 180,000 to 185,000 Tomans. Continuing to raise birds to heavy weights not only fails to generate profit but also imposes significant hidden losses on the farmer’s capital. Focusing on reducing FCR, selecting suitable genetics, and selling at the economic weight are the only ways to maintain sustainable profitability.
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