Profitability assessment of broiler farming in Peninsular Malaysia

Nor Amna A’liah Mohammad Nor, . and Mark Buda, . and Norhariani Mohd Nor, . and Wong, Kelly Kai Seng and Juwaidah Sharifuddin, . and Syahrin Suhaimee, . (2024) Profitability assessment of broiler farming in Peninsular Malaysia. Economic and Technology Management Review, 23. pp. 1-12. ISSN 1823-8149

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Abstract

The demand for broiler meat in Malaysia remains consistently high, making it crucial to regularly evaluate industry challenges to maintain competitiveness and ensure sustainability. Despite the strong demand, there are persistent issues related to cost management and profitability in broiler farming. Existing studies indicate that rising feed costs and market fluctuations have significantly impacted profitability, necessitating updated analyses to reflect the current economic landscape. This study addresses these needs by assessing farmers’ financial status, production costs, total net income and input-output ratios in broiler production across Peninsular Malaysia. Using a stratified random sampling method, data from 241 broiler farms were analysed to provide insights into current cost structures and profitability challenges faced by the industry. Descriptive statistics and farm budgeting served as the primary analytical tools. Findings revealed that farmers in Peninsular Malaysia face significant challenges related to high production costs primarily driven by volatile feed prices. The study shows that feed costs constitute the largest proportion of total production expenses, underscoring their critical role in influencing profitability. Despite these challenges, the industry maintains a marginal profit margin, as indicated by an input-output ratio of 1.03. This signifies that for every RM1.00 spent on production, RM1.03 is earned in revenue, highlighting the industry’s ability to achieve slight profitability under current economic conditions. Overall, the study highlights the importance of managing production costs to improve profitability and sustainability in broiler farming across Peninsular Malaysia.

Item Type:	Article
Creators:	Nor Amna A’liah Mohammad Nor, . and Mark Buda, . and Norhariani Mohd Nor, . and Wong, Kelly Kai Seng and Juwaidah Sharifuddin, . and Syahrin Suhaimee, .
Title:	Profitability assessment of broiler farming in Peninsular Malaysia
Date:	2024
Location:	Economic and Technology Management Review website
Publication:	Malaysian Agricultural Research and Development Institute
Volume:	23
Physical Description:	12p.
Agency Name:	Universiti Putra Malaysia (UPM)
Date Deposited:	02 Oct 2025 02:45
Last Modified:	02 Oct 2025 02:45
URI:	http://myagric.upm.edu.my/id/eprint/23681

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