Authors : B.H. Gabdo
Abstract: An analysis of cost and allocative efficiencies are equally imperative in capturing the comprehensive picture of production efficiency. An analysis on 255 livestock-oil palm integrated farms was conducted in districts of Johor for that purpose. Data envelopment analysis was imposed on the data to provide the estimates. Although, the study shows that the livestock-oil palm farmers produce at high cost and allocative efficiencies but a room still exist for improvement in their efficiency scores. Similar, it is with the slack analyses indicating very little wastage in inputs and shortfall in output. To improve farmers’ cost and allocative efficiencies, farmers should consider buying production inputs at cheaper rates and be judicious and timely in allocating farm inputs.
B.H. Gabdo , 2013. Estimation of Cost and Allocative Efficiencies under Smallholder Livestock-Oil Palm Integration Farms in Johor, Malaysia. Agricultural Journal, 8: 304-307.