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Robust efficiency and output elasticity of broiler production in Peninsular Malaysia

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 determinant...

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Main Authors: B. H., Gabdo, M. I ., Mansor, Kamal, H. A. W., Ilmas, A. M.
Format: Article
Language:English
Published: University of Tarbiat Modares 2017
Online Access:http://psasir.upm.edu.my/id/eprint/63146/1/Robust%20efficiency%20and%20output%20elasticity%20of%20broiler%20production%20in%20Peninsular%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/63146/
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spelling my.upm.eprints.631462018-08-16T01:34:29Z http://psasir.upm.edu.my/id/eprint/63146/ Robust efficiency and output elasticity of broiler production in Peninsular Malaysia B. H., Gabdo M. I ., Mansor Kamal, H. A. W. Ilmas, A. M. 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. University of Tarbiat Modares 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63146/1/Robust%20efficiency%20and%20output%20elasticity%20of%20broiler%20production%20in%20Peninsular%20Malaysia.pdf 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
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description 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.
format Article
author B. H., Gabdo
M. I ., Mansor
Kamal, H. A. W.
Ilmas, A. M.
spellingShingle B. H., Gabdo
M. I ., Mansor
Kamal, H. A. W.
Ilmas, A. M.
Robust efficiency and output elasticity of broiler production in Peninsular Malaysia
author_facet B. H., Gabdo
M. I ., Mansor
Kamal, H. A. W.
Ilmas, A. M.
author_sort B. H., Gabdo
title Robust efficiency and output elasticity of broiler production in Peninsular Malaysia
title_short Robust efficiency and output elasticity of broiler production in Peninsular Malaysia
title_full Robust efficiency and output elasticity of broiler production in Peninsular Malaysia
title_fullStr Robust efficiency and output elasticity of broiler production in Peninsular Malaysia
title_full_unstemmed Robust efficiency and output elasticity of broiler production in Peninsular Malaysia
title_sort robust efficiency and output elasticity of broiler production in peninsular malaysia
publisher University of Tarbiat Modares
publishDate 2017
url http://psasir.upm.edu.my/id/eprint/63146/1/Robust%20efficiency%20and%20output%20elasticity%20of%20broiler%20production%20in%20Peninsular%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/63146/
_version_ 1643837731741106176
score 13.211869

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