JURNAL PETERNAKAN
Vol. 23 No. 2 (2026): September 2026

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 (Department of Animal Science, Faculty of Agriculture, Mulawarman University)
Dinar Anindyasari (Department of Animal Science, Faculty of Agriculture, Mulawarman University)
Made Hardinata Wijakesuma (Department of Recreation, Sport Pedagogy and Consumer Sciences, Ohio University)
Dede Aprylasari (Department of Animal Science, Faculty of Agriculture, Mulawarman University)
Cori Qamara (Department of Animal Science, Faculty of Agriculture, Mulawarman University)



Article Info

Publish Date
07 Oct 2026

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.

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Journal Info

Abbrev

JURNAL PETERNAKAN

Publisher

Subject

Agriculture, Biological Sciences & Forestry

Description

Jurnal Peternakan mengakomodir artikel/karya ilmiah meliputi aspek Nutrisi dan Makanan Ternak, Produksi Ternak, Reproduksi dan Pemuliaan Ternak, Teknologi Hasil ternak, dan Sosial Ekonomi Peternakan serta aspek Kesehatan Ternak. Naskah yang dimuat dapat berupa hasil penelitian, telaah/tinjauan ...