Assessing the comparative advantage of integrated farming and feedlot production system of the ruminant sector in Malaysia: A policy analysis matrix approach

Abstract

Costly operation contributed by land availability and feed cost hurt the production capacity which has been demonstrated by Malaysia's low self-sufficiently level. The objective of this study is to investigate the competitiveness and efficiency of ruminant farms in Malaysia based on its production system particularly on the aspect of cost rationalization of feed. A total of 29 cattle farms operated under the scheme of Permanent Food Production Park have been surveyed and analysed based on the Policy Analysis Matrix (PAM) approach. The analysis reveals that the integrated farms were more competitive and efficient as compared to feedlot farms indicated by the ratio value of Domestic Resource Cost and Social Profitability. Contribution/ OriginalityThe findings will provide empirical-based evidence to convince the stakeholders on the importance of having a production system that suits the strength and weaknesses. Domestic production has the potential to be improved if the appropriate production system is adopted. Integrated farming will not only increase Malaysia's self-sufficiency level and correcting the trade deficit but it will also determine whether the sector will become privately and socially profitable or not.

An empirical examination of barriers to acceptance of integrated paddy and beef cattle farming in Indonesia

“…Empirical evidence indicates that integrated farming is effective in rationalizing operational costs, apart from being biologically symbiotic (Alberto et al, 2013). Hisham, Yusoff, Ismail, and Kamarulzaman (2020) demonstrated that the optimization of locally available, affordably priced natural resources through an integrated farming system in Malaysia helps to suppress feed costs. It decreases the reliance on imported feeds.…”

“…ICLS is not limited to a certain country or region; it has been widely adopted and practised across the world by integrating locally available crop varieties with diverse livestock commodities that are suitable to the area (Hisham et al, 2020). Previous studies have shown that economic scale is a crucial factor in achieving comparative advantages (Ismail & Abdul, 2014).…”