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Abstract
Managerial efficiency for broiler producers in Saudi Arabia is generally difficult to achieve. High investment costs coupled
with relatively high average production costs and the consequent incompetent market prices, have resulted in projects either
working at less than full capacity or being shut down completely. The aim here is to determine the most efficient production
alternatives (actions) available to managers under business risk considerations. The ordinary stochastic dominance approach
was used to solicit the most efficient production alternatives for broiler producing projects of all sizes in the Central Region of
Saudi Arabia. For small- and medium-sized projects, the efficient production alternatives concentrated on marketing risk. For
large projects, the efficient actions concentrated on both marketing and production risks. For the three sizes of projects, the
two production alternatives that proved to be the most efficient, were the one that contains creating more marketing strategies
and the one that adopts good veterinary care systems. On the other hand, the production alternative that deals with selecting
good breeds of chicks appeared to be most efficient for small and large projects only. © 1999 Elsevier Science B.V. All rights
reserved.