Author/Authors :
Abdulaker Benalywa, Zineb Department of Agribusiness and Bioresource Economics - University Putra Malaysia, Serdang, Selangor, Malaysia , Ismail, Mohd Mansor Department of Agribusiness and Bioresource Economics - University Putra Malaysia, Serdang, Selangor, Malaysia , Shamsudin, Mad Nasir Department of Agribusiness and Bioresource Economics - University Putra Malaysia, Serdang, Selangor, Malaysia , Yusop, Zulkornain Department of Economics - University Putra Malaysia, Serdang, Selangor, Malaysia
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
