Abstract:
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
estim
ate 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
al
so 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 (expe
rience, 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 increa
sing 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.
Keywords
: Bias, Bootstrap, Technical, Tobit, Transl
