The Efficiency of Beef Cattle Production in the Target Area of Concentration, Johor
The production of beef in Malaysia is inadequate to meet the demand, due to the rapid increase in consumption and population. The Target Area Concentration (TAC) project is expected to be a major contributor to boost beef cattle production. This study examines the efficiency of resources used in...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2004
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/309/1/549544_T_FP_2004_33.pdf |
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| Summary: | The production of beef in Malaysia is inadequate to meet the demand, due to the rapid
increase in consumption and population. The Target Area Concentration (TAC) project is
expected to be a major contributor to boost beef cattle production. This study examines
the efficiency of resources used in the beef cattle production in the TAC in Johor,
Malaysia. It addresses the issues on productivity and technical efficiency of beef cattle
operations and their relationship with management inventory, farm performances, animal
husbandry practices, as well as socio economic and demographic factors.
The translog and Cobb-Douglas stochastic frontier production functions were used to
examine the issues of technical efficiency in the TAC project. The frontier regression
model was estimated using the maximum likelihood estimation (MLE) technique. The
translog stochastic frontier model was found to be suitable in representing the sample
data and provide better estimates than the Cobb-Douglas model.
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The results indicated that the beef operation in the TAC has an increasing return to scale.
The average computed technical efficiency for individual farm units is 0.6829. The
majority of the farms (51%) were between 40% to 80% of technical efficiency. The total
loss in production due to inefficiency was estimated about 3,094 heads of beef cattle in
Animal Unit (AU) per year. The study also found that there was a significant different in
average technical efficiency by TAC location. However, the technical efficiency was not
significantly different by farm types, ownership, and sizes.
The findings of this study suggest that there is room for expansion, through the adoption
of best practice technology and optimal resource allocation. The farm’s technical
efficiency could be improved by better planning and controlling skills by the
farmers/managers, longer experience, proper training, more frequent of advisory services
by extension agents, higher calving rate, involvement by DVS in breeding and health
management services and by using cross breed cattle |
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