Global Advanced Research Journal of Agricultural Science (GARJAS) ISSN: 2315-5094
October 2018 Vol. 7(10): pp. 318-324
Copyright © 2018 Global Advanced Research Journals

 

Full Length Research Paper

Financial Appraisal of Layer Production in Peninsular Malaysia

Ilmas Abdurofia, Mohd Mansor Ismailb and Bashir Hamman Gabdoc,

 

a Institute of Agricultural and Food Policy Studies, Univerisiti Putra Malaysia, Malaysia

b Department of Agribusiness and Information System, Univerisiti Putra Malaysia, Malaysia

c Department of Agricultural Economics and Extension, Adamawa State University, Nigeria.

*Corresponding Author's Email: ilmasmasan@gmail.com

Accepted 27 October, 2018

 

Abstract

In Malaysia, egg production is a crucial necessity that the demand proceeds tremendously to the society. Due to the lack of food supply and the farmers are still not be able to get more profit, several agricultural policies have been introduced by Malaysian government in order to additionally boost the performance of agricultural sector and fulfill the government’s target to  reach closely self-sufficiency.  One of the common scheme of government incentives is offered by reducing the tax obligation from the income statement that usually imposed to the commercialized company. Nevertheless, less information of promoting on tax scenarios, ineffectiveness of applying the incentive program and scant encouragement  to potential investor are still remain untouched. Therefore, the main objective of this study is to investigate the role of government incentives in effecting project assessment of layer industry in different technology. The indicators of capital budgeting analysis namely Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) and Payback Period (PBP) are explained to illustrate financial appraisal.  The study reveals that the layer firms which involve in the open and close  systems are financially viable  to be a proposed project. Moreover, the industry represents extremely financial attractiveness and rapidly recover its financial investment where the government provides incentives as tax exemption.

Keywords: Government tax incentives, capital budgeting analysis, close-open system, layer production, Peninsular Malaysia. 

 

 

 

REFERENCES

 

Ariffin AS, Mohtar S, Baluch N (2014). Broiler industry with emphasis on short supply chain in Malaysia. Int Conf Tech Oper Manage 34-46.

Arya A, Fellingham JC, Glover JC (1998). Capital Budgeting: Some exceptions to the Net Presnt Rule, Issues in Accounting Education. Vol. 13 (3) pp. 499-508.

Bordman CMWJR, Stephen EC (2006). The Role of Capital Payback Period in the Theory and Application of Duration to Capital Budgeting. Journal Business Finance and Accounting, 9(4), pp.511–522.

Gitman LJ (2007). Principles of Managerial Finance, 11th Edition, Pearson International.

Lazaridis IT (2004). Capital Budgeting Practices: A Survey in businesses of Cyrus, Journal of Small Business Management, Vol 42 (4), pp.427-433.

Mackevicius J, Vladislav T (2010). Evaluati.,on of Investment Projects in Case of Conflict between the Internal Rate of Return and the Net Present Value Method. Ekonomika Journal, 89(4), pp.116–130.

Poultry Site (2013). Global poultry trends: world egg production set a record despite slower growth.http://www.thepoultrysite.com/articles/2653/global-poultry-trends-world-egg-production-sets-a-record-    despite-slower-growth/

Raghavan V, Chandran T, Chan SH (2002). Problems encountered in Malaysian egg production and quality. W   Poultry 18(2):26-29

Satyasai KJS (2009). Application of Modified Internal Rate of Return Method for watershed Evaluation . Agricultural Economic Research Review, 22, 401-406.

Sayed Nezhadfahim SR, Eghdami E, Yosefnezhad, Maleki  M (2009). Investigating the Procedure of financial factors in successful Companies. Research Journal of Recent Science, 2(3), 44-48.

Smith A (2011). Malaysian egg market set for continued growth.wattagnet.com

Van Horne, P (2013). Production costs of eggs at record high level. World Poultry. http://www.worldpoultry.net/Layers/Eggs/2013/10/Production-costs-of-eggs-at-  record-high-level-1315811W/

Wattagnet (2011). Watt executive guide to world poultry trends. https://www.wattagnet.com/ext/resources/uploadedFiles/WattAgNet/Footer/Footer_C. content/2010_Poultry_Trends.pdf

 

 

Related Articles


Original Research Article
Elpawati, Lim Ghee Thean, Mohd Mansor Ismail and Ilmas Abdurofi
Does attending seminars affect technical efficiency of white shrimp (Litopenaeusvannamei) aquaculture?
Glo. Adv. Res. J. Agric. Sci. January 2018 Vol: 7(1): - [Abstract] [Full Text - PDF] (277 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Ilmas Abdurofi on Google Scholar
Ilmas Abdurofi on Pubmed
Mohd Mansor Ismail on Google Scholar
Mohd Mansor Ismail on Pubmed
Bashir Hamman Gabdo on Google Scholar
Bashir Hamman Gabdo on Pubmed

Statistics

Viewed 136
Printed 45
Downloaded 2667
Powered By iPortal Works