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Journal of Applied Sciences
  Year: 2018 | Volume: 18 | Issue: 3 | Page No.: 109-115
DOI: 10.3923/jas.2018.109.115
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A Comparative Study Between Returns to Technology and Scale of Broiler Production in Peninsular Malaysia

Ilmas Abdurofi , Mohd Mansor Ismail and Abu Hassan Md Isa

Background and Objectives: The economic analysis of broiler production under various systems of production and scales of operation are considered in this study. In particular, the study aimed to describe the net return of broiler industry based on number of broiler production and its associated technological application. Materials and Methods: A sample of 310 farmers was drawn in Peninsular Malaysia based on stratified sampling technique; with system of production (technology) and scale of production as strata. The production-returns analysis technique was used to estimate costs of broiler production and net returns under both tax-paying and tax-exemption scenarios. The analyses in this study have repeatedly demonstrated the power of economy of scale in many spheres. Results: The findings showed that the medium and large scale farms under open system to be better compared to its peers in the closed system in terms of total output, low mortality rate, low feed conversion rate, low variable cost per bird and high net returns per bird. However, the closed system is more favorable in terms market weight of broilers. Generally, the small scale farmers across both farming systems produced with marginal net returns but others have better magnitude of net returns. Conclusion: It may be concluded that current technology in the broiler industry did not affect net returns much as did the scale of production.
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How to cite this article:

Ilmas Abdurofi, Mohd Mansor Ismail and Abu Hassan Md Isa, 2018. A Comparative Study Between Returns to Technology and Scale of Broiler Production in Peninsular Malaysia. Journal of Applied Sciences, 18: 109-115.

DOI: 10.3923/jas.2018.109.115






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