Published Date
2014, Vol.1:18–25, doi:10.1016/j.umkpro.2014.07.003
International Agribusiness Marketing Conference 2013
Open Access, Creative Commons license
Title
Performance of Broiler Contract Farmers: A Case Study in Perak, Malaysia ☆
Available online 4 August 2014.
Abstract
Contract broiler farming is one the system used to increase poultry production in Malaysia. Broiler contract farmers (BCF) participate in this system for having some benefits. This paper has evaluated economic performance of the BCFs in Perak. An economic evaluation of 60 BCFs was conducted in Perak to determine the performance of the system using economic performance analysis. Panel regression model was used in the analysis. This model involves price per bird (PRM) as dependent variable and size of farm (SOF), feed conversion rate (FCR), average body weight(ABW), average marketing age (AMA), mortality rate (MOR), and rearing housing system (DU). The results show that all variables, except SOF, are significantly influence the performance of BCF at five percent level of significance.
Keywords
- Contract broiler farming
- economic performance
- panel regression model
- References
- Allen and Lueck, 1995
- Allen, D.W. & Lueck, D (1995). Risk preferences and the economics of contract. The American Economics Review, 85(2), 447-451.
- Agarwal et al., 2005
- Agarwal, I., Priya, S., & Bhuvaneswai, S. (2005). Contract farming venture in cotton: A case study in Tamilnadu. Indian Journal of Agricultural Marketing, 19(2), 153-161.
- Bandara and Dassanayake, 2006
- Bandara R.M.A.S. & Dassanayake D.M.W.K. (2006). A quantitative analysis on factors affecting profitability of small scale broiler production, The Journal of Agricultural Sciences, 2(3), 45-50.
- Binswanger and Rosenzweig, 1986
- Binswanger, H.P. & Rosenzweig, M.R. (1986). Behavioural and material determinants of production relations in agriculture. Journal of Development Studies, 22(3), 503-539.
- Bisant et al., 2010
- Bisant, K, Fatimah, M.A. & Tan, H.B. (2010). Spatial integration in the broiler market in Peninsular Malaysia, Journal of International Food & Agribusiness Marketing, 22, 94-107.
- Carstensen, 2003
- Carstensen, P. (2003). The roles of antitrust and market regulation law in markets for agricultural products, The Antitrust Bulletin, 53(2), 271.
- Dileep et al., 2002
- Dileep, B.K., Grover, R.K., & Rai, K.N. (2002). Contract farming in tomato: An economic analysis. Indian Journal of Agricultural Economics, 57(2), 197-210.
- Cunningham, 2004
- Cunningham, D. (2004). Contract Broiler Production: Questions and answers at http://www.thepoultrysite.com/articles/147/contract-broiler- production-questions-and-answers.
- D'Silva et al., 2012
- D'Silva J.L., Bahaman A.S., & Hayrol, A.M.S. (2012). The March to sustainability of agriculture through contract farming – how will the youth fare? OIDA International Journal of Sustainable Development, 3(11), 59-66.
- D'Silva et al., 2009
- D'Silva, J.L., Mohamad Shaffril, H.A., Uli, J., & Abu Samah, B. (2009). A review of contract farming and factors that impinge youths acceptance to contract farming. European Journal of Social Sciences, 11(2), 328-338.
- Emine, 2013
- Emine I.T. (2013). The Effects of Factors on Death Rate in the Broiler Farms, Journal of Kafkas Univ Vet Fak Derg, 19(5), 815-820.
- Farooq et al., 2001
- Farooq M., Mian M.A. & Asghar A. (2001). Factors affecting cost of production and net profit per broiler in the subtropics. Livestock research for rural development. 13(1). http://www.cipav.org.co/lrrd/lrrd13/1/.
- Glover, 1983
- Glover, D. (1983). Contract farming and smallholder outgrower schemes in less developed countries. World Development, 12, 1143-1157.
- Glover, 1987
- Glover, D. (1987). Increasing the benefits to smallholders from contract farming: Problems for farmers organization and policy makers. World Development, 15(4), 441-448.
- Glover and Kusterer, 1990
- Glover, D. & Kusterer, K. (1990). Small farmers, big business: Contract farming and rural development. New York: St. Martin's Press.
- Goodhue, 2000
- Goodhue, R. (2000). Broiler production contract as a multi-agent problem: Common risk, incentives, and heterogeneity. American Journal of Agricultural Economics, 82(3), 602-622.
- Government of Malaysia, 2012a
- Government of Malaysia (2012). Livestock Statistics 2011, Putrajaya: Department of Veterinary Services (DVS), Ministry of Agriculture and Agro-Based Industry Malaysia.
- Government of Malaysia, 2012b
- Government of Malaysia (2012). Agrofood Statistics 2011. Putrajaya: Ministry of Agriculture and Agro-Based Industry Malaysia.
- Ghee and Dorral, 1992
- Ghee, L.T. & Dorral, R. (1992). Contract farming in Malaysia: With special reference to FELDA scheme in Glover, D. and Ghee, L.T. Contract farming in Southest Asia: Three country case studies, Kuala Lumpur: Universiti Malaya.
- Gulati, 2008
- Gulati, A. (2008). Fragmenting bottom and consolidating top: India's changing food system and implications for small holders in India: Some aspects of economic and social development (eds.) S. Mahendra Dev and K.S. Babu. Academic Foundation, India.
- Gray and Boehlje, 2005
- Gray, A.W. and Boehlje, M. (2005). Risk Sharing and Transactions Costs in Producer-Processor Supply Chains, Choices, 20(4), 281-286.
- Haque, 2000
- Haque, T. (2000). Contractual arrangement in land and labour market in rural India. Indian Journal of Agricultural Economics, 55(3), 233-252.
- Hayrol et al., 2012
- Hayrol A.M.S, Jeffrey, L.D., Bahaman A.S., Norsida, M., Jegak, U., and Azmariana, A. (2012). Acceptance towards sustainable agriculture among contract farmers and its impingement factors, American Journal of Environmental Sciences, 8(3), 297-303.
- Hennessey and Lawrence, 1999
- Hennessey, D.A. & Lawrence, J.D. (1999). Contractual relation, control, and quality in the hog sector. Review of Agricultural Economics, 21(1), 52-67.
- Key and Runsten, 1999
- Key, N. & Runsten, D. (1999). Contract farming, smallholders, and rural development in Latin America: The organization of agroprocessing firms and the scale of outgrower production. World Development, 27, 381-401.
- Kleyn, 2012
- Kleyn R. (2012). Feeding broiler chickens for Profit, http://www.spesfeed.co.za/ Feeding_Broiler_Chicken_for_Profit.pdf.
- Little and Watts, 1994
- Little, P.D. & Watts, M.J. (1994). Living under contract: Contract farming and agrarian transformation in Sub-Saharan Africa. Madison, WI: University of Wisconsin Press.
- MacDonald et al., 2004
- MacDonald, J., Ahearn, J.M., Banker, D., Chambers, W., Dimitri,C., Key, N., Nelson,K., & Southard, L. (2004). Contracts, markets, and prices: Organizing the production and use of agricultural commodities. Agricultural Economic Report No. 837. United States Department of Agriculture.
- Mehta et al., 2003
- Mehta, R., Nambiar, R.G., Delgado C. & Subramanian, S. (2003). Policy, technical and environmental determinants and implications of the scaling-up of broiler and egg production in India. Annex II of the IFPRI-FAO Final Report Livestock Industrialization, Trade and Social-Health- Environmental Impacts in Developing Countries, phase II, International food Policy Research Institute, Washington DC.
- Miyata et al., 2009
- Miyata, S., Minot, N., and Hu, D. (2009). Impact of contract farming on income: Linking small farmers, packers, and supermarkets in China. World Development, 37(11), 1781-1790.
- Samarakoon and Samarasinghe, 2012
- Samarakoon S.M.R. & Samarasinghe K., (2012). Strategies to improve the cost effectiveness of broiler production, Tropical Agricultural Research, 23(4), 338-346.
- Saran et al., 2005
- Saran, S., Sasidhar, P.V.K, Sastry, K.V.H., & Singh, R. (2005). Indian poultry industry: Current scenario and future prospects. Indian Journal of Animal Sciences, 75(8), 992-998.
- Perry et al., 1999
- Perry, J., Banker, D. & Green, R. (1999). Broiler farms: Organization, management, and performance. ERS, USDA: 41.
- Shahvali and Moeinizadeh, 2009
- Shahvali M. & Moeinizadeh H. (2009). Improvement of feed conversion ratio in the broiler farms of Iran by study of effecting factor, Pajouhesh & Sazandegi No 79, 115-127.
- Singh, 2002
- Singh, S. (2002). Contracting out solutions: Political economy of contract farming in the India Punjab. World Development, 30, 1621-1638.
- Singh, 2005
- Singh, S. (2005). Role of the state in contract farming in Thailand: Experience and lessons. ASEAN Economic Bulletin, 22(2), 217-228.
- Sugumar, 2006
- Sugumar S, (2006), Sustainable contract farming for increased competitiveness : case study on poultry sector in Sarawak, Malaysia, http://www.fao.org/ fileadmin/user_upload/contract_farming/presentations/Contract_farming_of_poultry_in_Malaysia_1.pdf.
- Tapsir and Sarmin, 2008
- Tapsir, S. & Sarmin,S. (2008), Ekonomi pengeluaran dan pemasaran dalam Panduan penternakan ayam pedaging, Ed. Ke-2, Serdang, Selangor.
- Tapsir et al., 2011
- Tapsir S., Mokhdzir H.L., Nor Rahim, S. & Jalil, N. (2011), Issue and impact in broiler contract farming in Peninsular Malaysia, Economic and Technology Management Review, 6, 33-57.
- Tripathi et al., 2005
- Tripathi, R.S., Singh, R. & Singh, S. (2005). Contract farming in potato production: An alternative for managing risk and uncertainty. Agricultural Economics Research Review, 18, 47-60.
- Von Braun and Kennedy, 1994
- Von Braun, J. & Kennedy. E. (1994). Ed. Agricultural Commercialization, Economic Development, and Nutrition. Johns Hopkins University Press.
- Walne, 2002
- Walne, M. (2002). SAPAInformation/BroilerProduction, http://www.sapoultry.co.za/pdf%20information/ BROILER%20PRODUCTION%20- %20MIKE%20WALNE.pdf.
- Wang et al., 2011
- Wang, H.H., Zhang, Y., & Wu, L. (2011). Is contract farming a risk management instrument for Chinese farmers?: Evidence from a survey of vegetable farmers in Shandong. China Agricultural Economic Review, 3(4), 489-505.
- ☆Peer-review under responsibility of Universiti Malaysia Kelantan.
For further details log on website :
No comments:
Post a Comment