Relationship between private profitability and technical assistance in family-operated rabbit farms in Temascalapa, State of Mexico

Abstract

Objective: To evaluate private profitability (PP) in small-scale rabbit farms and establish the cause-effect ratio between investment in technical advisory services and PP. Design/methodology/approach: An unrestricted random sampling was applied, and the Policy Analysis Matrix was used to calculate the private budget. Additionally, PP was determined at market prices, considering changes in the technical advisory services (TAS) variable. A simple linear regression was used to assess the relationship between TAS and PP, given the low heterogeneity among the production units in the sample. Results: Based on the observed technical values, private profitability, the private cost ratio, value added to total income, break-even point (in units), feed proportion in the cost structure, and annual gross profit were 0.544, 0.453, 0.549, 0.503, 89%, and 0.494, respectively. Limitations: The study examines a production method with little to no TAS, relying solely on projections to estimate the impact of investment in this area. Conclusions: TAS enhance resource efficiency, significantly affecting technical indicators due to low overall production. While they have little effect on revenue, they reduce private profitability and net profit, two key measures of economic efficiency.