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Robust efficiency and output elasticity of broiler production in Peninsular Malaysia


B. H., Gabdo and M. I ., Mansor and Kamal, H. A. W. and Ilmas, A. M. (2017) Robust efficiency and output elasticity of broiler production in Peninsular Malaysia. Journal of Agricultural Science and Technology, 19. 525 - 539. ISSN 1680-7073; ESSN: 2345-3737


This study investigates issues on efficiency and elasticity of broiler production in Peninsular Malaysia. Data from 296 broiler farms were subjected to SFA, DEA and bootstrap methods for technical efficiency; Translog and Tobit regression analyses to estimate elasticity of production and determinants of efficiency respectively in broiler production. We found that farmers produce mean efficiency of 94, 95 and 97% with robust for small, medium and large scale farms respectively. Apart from inefficiency, we also found evidence that minimal bias/noise exists in broiler production. Relative to output elasticity, we observed an inelastic relationship in feeds but an elastic relationship in DOC, medications and utilities. Most of the socio-economic attributes (experience, age, education, business status and number of farms) show highly significant statistical relationship with efficiency and with appropriate signs. To ensure production at higher marginal returns and lower marginal costs, farms operating under increasing returns to scale should scale-up production while those producing at decreasing returns to scale need to scale-down production. The study also advocates to farmers to embrace adequate training/better education, contract farming and ownership of fewer number of farms in order to enhance efficiency, productivity and sustainability of the broiler industry.

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Additional Metadata

Item Type: Article
Divisions: Institute of Agricultural and Food Policy Studies
Publisher: University of Tarbiat Modares
Keywords: Bias; Bootstrap; Technical; Tobit; Translog
Depositing User: Mohd Hafiz Che Mahasan
Date Deposited: 16 Aug 2018 01:34
Last Modified: 16 Aug 2018 01:34
URI: http://psasir.upm.edu.my/id/eprint/63146
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