Economic analysis of intensive sheep fattening models: application of SWOT and Porter’s five forces methods to fatteners in the steppe areas of Algeria
¹Houari Boumediene Sciences and Technology University - FSTGAT - USTHB, Department of Geography and Territorial Planning, BP 32 El Alia,16111 Bab Ezzouar, Algiers, Algeria
²University Ziane Achour of Djelfa Moudjbara Road, Faculty of Natural and Life Sciences, Department of Earth and Universe Sciences, PB: 3117 Djelfa 17000, Djelfa, Algeria
*Correspondence: benabderrahmanali@yahoo.fr
Abstract:
The present study provides a comprehensive economic assessment of intensive sheep-fattening systems in the steppe region of Djelfa, Algeria. SWOT analysis and Porter’s Five Forces are used in conjunction with advanced multivariate methodologies to create an integrated framework that incorporates economic, strategic, and quantitative viewpoints. Based on a 2024 field survey of 371 farms, three economic models are developed, distinguished by flock size and fattening phase. The results reveal a consistent improvement in profitability with larger flocks: net profit margins vary from 23.81 to 41.88 USD per head, with economic return rates of 64% to 80%. Feed expenses are the largest cost component (43–52%), emphasising producers’ reliance on external inputs and vulnerability to feed price volatility.
A positive and significant effect of flock size and fattening duration on profitability is confirmed by multiple regression, MANOVA, path analysis, and logistic regression, while price volatility exerts a negative impact. Large-scale enterprises benefit from economies of scale and stronger bargaining positions, whereas smaller farms remain vulnerable. The study calls for: (i) targeted support for small-scale fatteners, (ii) the promotion of sustainable management practices, and (iii) the organization of cooperative value chains to enhance regional competitiveness. By combining economic, strategic, and quantitative perspectives, this investigation offers novel insights into the determinants of profitability and sustainability in sheep-fattening systems across steppe environments.
Key words:
economic model, intensive fattening, Porter’s Five Forces, profitability, sustainability, SWOT analysis