Comparative Analysis of Production Performance and Economic Efficiency between Open and Closed House Broiler Systems under a Partnership Model in Malang Regency, Indonesia

Department of Socio-Economic, Faculty of Animal Science, Universitas Brawijaya, Malang 65145 Indonesia

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Abstract

This study aims to compare the production performance and production costs of broiler farms using open house and closed house systems under a partnership model in Malang Regency, East Java. Data were collected through a case study approach using farm records, financial reports, direct interviews with farm managers, and field observations. Key performance indicators evaluated included Feed Conversion Ratio (FCR), Body Weight (BW), depletion rate, and Production Index (IP). Economic analysis was conducted based on total fixed and variable costs. The results showed that the closed house system demonstrated superior production performance compared to the open house system. The closed house achieved a lower FCR of 1.51 compared to 1.62 in the open house, and a higher final BW of 2.10 kg versus 2.06 kg. The depletion rate was lower in the closed house (3.1%) than in the open house (3.6%), while the Production Index reached 421.13, exceeding the open house IP of 350.24. Cost analysis indicated that variable costs dominated total costs (>97%) in both systems, with feed representing 73.5-74.3% and DOC 18.6-19.9% of total cost. In nominal terms, total production costs increased with enterprise scale and were higher in closed-house than open-house systems: small (IDR 638.9 million vs. 206.9 million), medium (IDR 1.596 billion vs. 397.4 million), and large (IDR 2.243 billion vs. 1.014 billion). In conclusion, closed-house technology provides clear technical and economic advantages for partnership-based broiler production in tropical settings