The effects of Corona Virus Pandemic on Agricultural Economics: A Study of Broiler industry in Kurdistan Province, Iran

Document Type : Research Paper

Author

Assistance Professor of Agricultural Economics, University of Kurdistan.

Abstract

Extended Abstract
Introduction
The Covid-19 virus pandemic has affected the entire world and all economic sectors. The agricultural sector has been affected by this crisis from various dimensions, too. The broiler industry is the largest industry in Kurdistan province, which has been affected by this pandemic in various ways, such as supply chain of inputs, changes in supply and demand structures. The broiler industry of Kurdistan province has directly and indirectly created employment for about 14,000 people. Kurdistan province has more than 750 active broiler farms, which use about 15 million broiler chicken pieces in each period and 60 million pieces per year. Kurdistan province produces about 4% of the country's chicken meat. This study aims to investigate and estimate the implications of the Corona pandemic on production, performance and economic efficiency of broiler farms in Sanandaj township, Kurdistan province, Iran.
Materials and Methode
Production and performance criteria were extracted from summarizing and comparing data in Excel software. To estimate the efficiency criteria by data envelopment analysis model, DEAP software was used; and in order to evaluate the difference between the means, the matched-pairs t-test was conducted in SPSS software. Necessary data were obtained through a simple random sampling method. The collected data were related to two breeding periods in autumn 2019 before the pandemic, and autumn 2020 after the pandemic. All production, performance and efficiency measures calculated and compared in pre-pandemic and post-pandemic periods.
Results and discussion
The results showed that the total number of day-old chicks in pre-pandemic and post-pandemic periods was not significantly different. Total production of small and medium farms decreased slightly in the post-pandemic period; whilst total production in large farms, due to the increase in weight of chickens, not only did not decrease but also increased significantly. The grain-to-chicken conversion ratio increased on all farms, so that more grain was used to produce one kilogram of chicken, in the post-pandemic period. The reason for this could probably be the irregularity in the sales process and the increase in the number of storage days. The age of slaughter increased in all farms in the post-pandemic period, significantly. Due to the increase in slaughter age, the average weight of chickens at slaughter also increased significantly. Furthermore, the percentage of losses in all farms showed a significant increase. Regarding efficiency, no significant difference was found in the average technical efficiency of broiler farms before and after the corona outbreak. Nevertheless, the difference between the average allocation and economic efficiency of the farms in the  pre-pandemic and post-pandemic periods were significant; In all three capacity groups, there was a significant decrease in both allocation efficiency and economic efficiency in the post-pandemic period.
Suggestion
The results showed a significant decrease in allocative and economic efficiency of the farms in post-pandemic relative to pre-pandemic periods, therefore, more attention is needed by managers and policy makers in the private and public sectors to develop and implement a special and alternative program for emergencies  like COVID-pandemic.
In order to limit the reduction of allocation and economic efficiency, which play an important role in maintaining the motivation of production and continuity of product supply, it is suggested that broiler farms develop managerial and economic strategies including scheduling and mechanizing the process of supplying inputs and selling the product.

Keywords


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