Measuring and explaining multi-directional inefficiency in the Malaysian dairy industry

Nurul Aisyah Binti Mohd Suhaimi*, Yann de Mey, Alfons Oude Lansink

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy industry. Design/methodology/approach: This study uses multi-directional efficiency analysis to measure the technical inefficiency scores on a sample of 200 farm observations and single-bootstrap truncated regression model to define factors affecting technical inefficiency. Findings: Managerial and program inefficiency scores are presented for intensive and semi-intensive production systems. The results reveal marked differences in the inefficiency scores across inputs and between production systems. Practical implications: Intensive systems generally have lowest managerial and program inefficiency scores in the Malaysian dairy farming sector. Policy makers could use this information to advise dairy farmers to convert their farming system to the intensive system. Social implications: The results suggest that the Malaysian Government should redefine its policy for providing farm finance and should target young farmers when designing training and extension programs in order to improve the performance of the dairy sector. Originality/value: The existing literature on Southeast Asian dairy farming has neither focused on investigating input-specific efficiency nor on comparing managerial and program efficiency. This paper aims to fill this gap.
Original languageEnglish
Pages (from-to)2788-2803
JournalBritish Food Journal
Volume119
Issue number12
DOIs
Publication statusPublished - 2017

Fingerprint

Dairying
dairy industry
Agriculture
dairy farming
dairies
production technology
Organizational Efficiency
farmers
extension programs
finance
agricultural policy
education programs
Administrative Personnel
farming systems
Education
farms
Farms
Dairy industry
Inefficiency
Technical inefficiency

Keywords

  • Dairy industry
  • Malaysia
  • Multi-directional efficiency analysis
  • Technical inefficiency

Cite this

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title = "Measuring and explaining multi-directional inefficiency in the Malaysian dairy industry",
abstract = "Purpose: The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy industry. Design/methodology/approach: This study uses multi-directional efficiency analysis to measure the technical inefficiency scores on a sample of 200 farm observations and single-bootstrap truncated regression model to define factors affecting technical inefficiency. Findings: Managerial and program inefficiency scores are presented for intensive and semi-intensive production systems. The results reveal marked differences in the inefficiency scores across inputs and between production systems. Practical implications: Intensive systems generally have lowest managerial and program inefficiency scores in the Malaysian dairy farming sector. Policy makers could use this information to advise dairy farmers to convert their farming system to the intensive system. Social implications: The results suggest that the Malaysian Government should redefine its policy for providing farm finance and should target young farmers when designing training and extension programs in order to improve the performance of the dairy sector. Originality/value: The existing literature on Southeast Asian dairy farming has neither focused on investigating input-specific efficiency nor on comparing managerial and program efficiency. This paper aims to fill this gap.",
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author = "{Mohd Suhaimi}, {Nurul Aisyah Binti} and {de Mey}, Yann and {Oude Lansink}, Alfons",
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Measuring and explaining multi-directional inefficiency in the Malaysian dairy industry. / Mohd Suhaimi, Nurul Aisyah Binti; de Mey, Yann; Oude Lansink, Alfons.

In: British Food Journal, Vol. 119, No. 12, 2017, p. 2788-2803.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

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AU - Mohd Suhaimi, Nurul Aisyah Binti

AU - de Mey, Yann

AU - Oude Lansink, Alfons

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Y1 - 2017

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AB - Purpose: The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy industry. Design/methodology/approach: This study uses multi-directional efficiency analysis to measure the technical inefficiency scores on a sample of 200 farm observations and single-bootstrap truncated regression model to define factors affecting technical inefficiency. Findings: Managerial and program inefficiency scores are presented for intensive and semi-intensive production systems. The results reveal marked differences in the inefficiency scores across inputs and between production systems. Practical implications: Intensive systems generally have lowest managerial and program inefficiency scores in the Malaysian dairy farming sector. Policy makers could use this information to advise dairy farmers to convert their farming system to the intensive system. Social implications: The results suggest that the Malaysian Government should redefine its policy for providing farm finance and should target young farmers when designing training and extension programs in order to improve the performance of the dairy sector. Originality/value: The existing literature on Southeast Asian dairy farming has neither focused on investigating input-specific efficiency nor on comparing managerial and program efficiency. This paper aims to fill this gap.

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