IDEAS home Printed from https://ideas.repec.org/p/ags/asea24/344456.html
   My bibliography  Save this paper

Cost-Efficiency of Small and Semi-Commercial Broiler Farms in Peninsular Malaysia

Author

Listed:
  • Nor, N.A.A.M.
  • Buda, M.
  • Nor, N.M.
  • Seng, K.W.K.
  • Sharifuddin, J.

Abstract

The broiler industry in Peninsular Malaysia faces significant challenges, including escalating production costs influenced by volatile feed prices, supply dependencies, and disruptions such as the COVID-19 pandemic. A comprehensive investigation was undertaken on 105 small and semi-commercial broiler farms in Peninsular Malaysia, employing structured questionnaires and a stratified random sampling approach. The study aimed to estimate the cost-efficiency of broiler farming and determine the factors affecting farm-level cost inefficiency. The findings confirm the presence of cost inefficiencies in small and semi-commercial broiler production in the area studied. Specifically, the research identified an operational inefficiency of approximately 7.1% above optimal costs among surveyed farms, suggesting a potential 7.1% reduction in production costs through enhanced management strategies. The findings indicate day-old chicks, feed, medicine, miscellaneous inputs, output, and capital significantly influenced cost function. Additionally, the study explored the significant role of extension services in reducing cost inefficiencies, with farms benefiting from such services exhibiting lower inefficiencies. In conclusion, this research provides critical insights into the complex relationships between efficiency drivers and inefficiencies within the broiler farming sector in Peninsular Malaysia. These identified factors offer valuable information for stakeholders to formulate effective strategies, optimize production processes, and enhance the competitiveness and sustainability of the industry.

Suggested Citation

  • Nor, N.A.A.M. & Buda, M. & Nor, N.M. & Seng, K.W.K. & Sharifuddin, J., 2024. "Cost-Efficiency of Small and Semi-Commercial Broiler Farms in Peninsular Malaysia," ASEAN University for Sustainable Food System, Faculty of Economics, Kasetsart University, Bangkok, Thailand, April 18-19, 2024 344456, Association of Southeast Asian Nations (ASEAN).
    • Handle: RePEc:ags:asea24:344456
    DOI: 10.22004/ag.econ.344456
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/344456/files/Nor%2C%20N.A.A.M%2C%20Buda%2C%20M.%2C%20Nor%2C%20N.M.%2C%20Seng%2C%20K.W.K%2C%20and%20Sharifuddin%2C%20J..pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.344456?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, December.
    2. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 2008. "The Measurement of Productive Efficiency and Productivity Growth," OUP Catalogue, Oxford University Press, number 9780195183528, Decembrie.
    3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bravo-Ureta, Boris E. & Higgins, Daniel & Arslan, Aslihan, 2020. "Irrigation infrastructure and farm productivity in the Philippines: A stochastic Meta-Frontier analysis," World Development, Elsevier, vol. 135(C).
    2. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    3. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    4. G. Thomas SAV, 2012. "Is The Production of Religious Knowledge Efficient? Managing Faith Related Postsecondary Institutions," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 1-12, February.
    5. Tudor EDU & Iliuta Costel NEGRICEA, 2012. "Brand Positioning - A Marketing Resource and an Effective Tool for Small and Medium Enterprises," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 1-11, February.
    6. G. Thomas Sav, 2012. "Stochastic Cost Inefficiency Estimates and Rankings of Public and Private Research and Doctoral Granting Universities," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(3), pages 1-13, June.
    7. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    8. Alejandro Arvelo-Martín & Juan José Díaz-Hernández & Ignacio Abásolo-Alessón, 2019. "Hospital productivity bias when not adjusting for cost heterogeneity: The case of Spain," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-17, June.
    9. Emad S. Aljohani & Benaissa Chidmi, 2024. "Analyzing Technical Efficiency in Cereal Production across Selected European Union Countries," Sustainability, MDPI, vol. 16(2), pages 1-27, January.
    10. Salustiano, Silvia Ferreira Marques & Barbosa, Natália & Moreira, Tito Belchior Silva, 2020. "Do subsidies drive technical efficiency? The case of portuguese firms in the agribusiness sector," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 58(3), January.
    11. Ali M. Oumer & Amin Mugera & Michael Burton & Atakelty Hailu, 2022. "Technical efficiency and firm heterogeneity in stochastic frontier models: application to smallholder maize farms in Ethiopia," Journal of Productivity Analysis, Springer, vol. 57(2), pages 213-241, April.
    12. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    13. Barros, Carlos Pestana & Williams, Jonathan, 2013. "The random parameters stochastic frontier cost function and the effectiveness of public policy: Evidence from bank restructuring in Mexico," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 98-108.
    14. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.
    15. Kangile, Rajabu Joseph, 2015. "Efficiency In Production By Smallholder Rice Farmers Under Cooperative Irrigation Schemes In Pwani And Morogoro Regions, Tanzania," Research Theses 265681, Collaborative Masters Program in Agricultural and Applied Economics.
    16. Veronika Fenyves & Tibor Tarnóczi & Zoltán Bács & Dóra Kerezsi & Péter Bajnai & Mihály Szoboszlai, 2022. "Financial efficiency analysis of Hungarian agriculture, fisheries and forestry sector," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(11), pages 413-426.
    17. Margarita Genius & Spiro Stefanou & Vangelis Tzouvelekas, 2009. "Productivity Growth and Efficiency under Leontief Technology: An Application to US Steam-Electric Power Generation Utilities," Working Papers 0913, University of Crete, Department of Economics.
    18. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Department of Economics - Working Papers Series 1092, The University of Melbourne.
    19. Helvoigt, Ted L. & Adams, Darius M., 2009. "A stochastic frontier analysis of technical progress, efficiency change and productivity growth in the Pacific Northwest sawmill industry," Forest Policy and Economics, Elsevier, vol. 11(4), pages 280-287, July.
    20. Cazals Catherine & Dudley Paul & Florens Jean-Pierre & Jones Michael, 2011. "The Effect of Unobserved Heterogeneity in Stochastic Frontier Estimation: Comparison of Cross Section and Panel with Simulated Data for the Postal Sector," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-22, September.

    More about this item

    Keywords

    Livestock Production/Industries; Production Economics; Sustainability;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:asea24:344456. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://asean.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.