Quantitative methods to determine factors affecting profits of lamb fattening enterprises

The purpose of this study was to demonstrate the use of profit function regression model as a possible practical decision support tool in the lamb meat production. It was found that all independents variables except “Fa�ening Duration”, “Capacity Use”, “Total Other Expenditures” and “Number of Lambs”, had strong statistical associations (P < 0.01) with the profit from per kg live-weight. Because marginal impact of each independent variable on the profit was the estimated co-efficient value, they could simply be used to evaluate “what-if scenarios” and the risk of investment under changing circumstances in lamb meat production. It is, therefore, intended that lamb meat producers could use such modelling approach as a practical decision support tool.