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All Journal JURNAL PETERNAKAN
Dinar Anindyasari
Department of Animal Science, Faculty of Agriculture, Mulawarman University

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Income Over Feed Cost as an Indicator of Production Efficiency, Business Competitiveness, and Consumer Value in Close-House Broiler Production Systems I Putu Gede Didik Widiarta; Dinar Anindyasari; Made Hardinata Wijakesuma; Dede Aprylasari; Cori Qamara
Jurnal Peternakan Vol. 23 No. 2 (2026): September 2026
Publisher : State Islamic University of Sultan Syarif Kasim Riau

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24014/jupet.v23i2.38928

Abstract

Income Over Feed Cost (IOFC) is widely recognised as a strategic economic indicator for evaluating performance in intensive broiler production systems. This study aimed to assess IOFC as an integrative measure of production efficiency, business competitiveness, and consumer value in close-house broiler farming. The study was conducted in Kutai Kartanegara Regency, involving ten purposively selected commercial close-house broiler farms operating under contract farming schemes. A quantitative observational design was applied using complete production and financial data from one production cycle per farm. Data were analyzed using descriptive statistics, while multiple linear regression was employed to identify the main determinants of IOFC. The results indicated that biological performance exceeded prevailing commercial standards, with a mean final live weight of 2.21 kg, a feed conversion ratio of 1.53, and a livability of 96.9%. Feed costs accounted for the largest share of total production costs (64.2%). The mean IOFC reached IDR 9,850 per bird, reflecting strong economic performance and competitive advantage. Regression analysis showed that the feed conversion ratio was the most significant determinant of IOFC, followed by final live weight and mortality rate. Feed intake did not differ significantly when efficiency variables were controlled. Higher IOFC was significantly associated with lower production costs per kilogram and improved farm-gate price competitiveness, indicating enhanced consumer value through cost efficiency and price stability. IOFC serves as a robust integrative indicator linking biological efficiency, economic performance, and consumer value in close-house broiler production systems.