Impact of technology and government incentives on the performance of broiler contract farming in Johor

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.