The general objective of this study is to present the economic situation of Hungarian broiler production. A deterministic model was constructed to investigate the role of technical efficiency on profitability. As the results demonstrate, in current economic conditions broiler production can be profitable if the European Production Efficiency Factor (EPEF) is above 300-310. A lower level of technology, cheaper feed and chicks in addition to their weaker quality deteriorates the technical efficiency of production, which results in poor economic indicators. Therefore, it is not worth saving on either the level of technology or the quality of chicks or feed. Thus, the key purpose of future developments should be: increasing efficiency.