Investigating the economic effects of government policies on broiler production units in Fars province

Subject Areas : Agricultural Economics Research

Roham Rahmani ¹ (Assistant Professor, Economic, Social and Extension Research Department, Fars Agricultural and Natural Resources Research and Education Center, Agricultural Research, Education & Extension Organization (AREEO), Shiraz, Iran)
ghasem layani ² (Assistant Professor, Management and Rural Development Department, Faculty of Agriculture, Shahrekord University, Iran)

Received: 2022-02-28 Accepted : 2023-08-16 Published : 2023-10-23

Keywords: Fars province, broiler, Comparative Advantage, Policy Analysis Matrix, Competitive Ability,

Abstract :

In this study, comparative advantage and the effect of government policies on the broiler production was investigated using Policy Analysis Matrix in 2018 in Fars province. Based on the results Domestic Resource Cost is less than one and broiler production has a comparative advantage. The value of Nominal Protection Coefficient for Output is less than one and producers have paid taxes indirectly. The value of Nominal Protection Coefficient for Input is less than one. Therefore, the shadow price of the inputs is higher than their market price and indirect subsidies has been paid to the inputs. Based on the Effective Protection Coefficient the simultaneous interventions of government in the input and output market have been to the detriment of the broiler production. Given the government's negative support for broiler production, non-interference of the government is a positive step in the improvement of broiler production. Therefore, the gradual reduction of support for inputs, along with the government's non-interference in determining the price of broiler, is a positive step towards stabilizing and improving the broiler production.

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