Maximizing profit in broiler production as prices change: A simple approximation with practical value

Time-varying energy and protein levels in broiler feed raise profit considerably above feeding at constant levels. To accurately set profit-maximizing levels of feed ingredients, nonlinear biological response functions are employed. Nonlinear programming allows solution for optimal energy, protein, and ingredient levels for given prices, but may be too complex for industry-wide use. However, separable linear programming can approximate the optimal solution without significant loss of profit. Linear programming is common in broiler feed formulation, so producers can adopt this technique with existing technology. The potential increase in profits might well ensure the economic survival of marginal firms.