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Advances in Animal and Veterinary Sciences

Research Article
Adv. Anim. Vet. Sci. 7(8): 641-647.
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Zineb Abdulaker Benalywa1,4*, Mohd Mansor Ismail1, 2, Mad Nasir Shamsudin1, Zulkornain Yusop3

1Department of Agribusiness and Bioresource Economics, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia; 2Institute of Agricultural and Food Policy Studies, University Putra Malaysia, Malaysia, 43400 Serdang, Selangor, Malaysia; 3Department of Economics, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia; 4Department of Agricultural Economics, University of Tripoli, Libya.

Abstract | Broiler farming project valuation has been widely assessed although contract farming term has not been considered. This study tends to evaluate the government incentives’ impact on the broiler contract farming in Johor (the leading chicken producer in Peninsular Malaysia) under different technologies using capital budgeting techniques. The study surveyed 70 farms in Johor. The result demonstrated that broiler contract farming overall was financially viable. These results showed that by using closed technology, the chance to provide higher profit and reduce the business risk is visible. Moreover, when the government executed tax incentives, the feasibility of the project is significantly enhanced.

Keywords | Broiler contract farming, Johor, Capital budgeting technique, Government incentives, Technology