1992 Volume 29 Issue 3 Pages 158-167
Based on the data collected from forty six local hog farms in 1987, the factors affecting ordinary profit were analyzed. A total of twenty two factors were considered for each brood sow, including the ordinary profit, cost of goods sold, sales amount, the number of deliveries per year and unit price of dressed carcass.
We computed a multiple regression equation equation with forward selection method and obtained the following results.
Y=30, 129.204-0.952X1+0.914X2-0.527X3-0.961X4
R2=0.964 R2=0.961 Se=16, 792.1 d. f=41
where the response variable (Y) is the ordinary profit, and the explanatory variables are the cost of goods sold (X1), the sales amount (X2), the selling and administrative expense (X3), and the non-operating expense (X4).
Standardized regression coefficients on each variable were -1.127, 0.960, -0.377 and 0.260, respectively. It suggests that the cost of goods sold contributed more to the ordinary profit than the sales amount.
The cost of goods sold consisted mainly of feeder livestock cost and feed cost. Standardized regression coefficient on the feeder livestock cost was 0.521 and on the feed cost was 0.486. The sales amount consisted mainly of the unit price of dressed carcass and the number of deliveries per year. Standardized regression coefficient on the unit price of dressed carcass was 0.489 and on the number of deliveries per year was 0.270.
These coefficients proved the number of deliveries per year, the marketing techniques to meet the market conditions, and the feeder livestock cost and the feed cost to be the most important factors for the improvement of ordinary profit.
