The objective of this study is to investigate the demand for quality vegetables in Malaysia. This study estimates quality elasticities from the difference between expenditure and quantity elasticities in order to show the demand for quality vegetables in Malaysia. By using the Household Expenditure Survey 2004/2005, expenditure and quantity Engel equations are estimated via two stage least square. The positive estimated quality elasticities (except root and tuberous vegetable) show that Malaysian consumers tend to increase their demand for quality vegetables in response to their incomes rise. To be more specific, urban consumers are expected to demand more of higher quality vegetables (except root and tuberous vegetable) than rural consumers.
Using the Malaysian Household Expenditure Survey 2004/2005 data, this study investigated Malaysian consumers’ preference for beef quantity, quality, and lean beef. Demand and price models that incorporated consumer socio-economic variables were estimated via two-stage least squares (2SLS). This study showed that Malaysian consumers tend to demand for more quantity rather than quality of beef products. Malaysian consumers are also more responsive to price changes rather than fat reduction in beef products. It is more profitable for beef market players to increase their production as Malaysian consumers are expected to consume increasing amounts of beef products.
As Malaysian economies grow, Malaysian per capita income is likely to increase. From economics point of view, it is expected that better-off consumers will move to better quality of food attributes such as freshness, food safety, quality and healthfulness in their food intake. This study aimed to investigate the demand for eggs attributes by Malaysian consumers. The study considers the conjoint analysis technique as a method for acquiring insights into preferences for eggs product. The technique was applied to establish the trade-offs that Malaysian consumers make between size, colour, size of packaging, functional attribute and price in the purchasing of eggs for 202 respondents. Least squares regression was utilized to estimate the relative importance of attributes for eggs. The results revealed that the ideal characteristic of egg was one with large size (grade A), omega eggs, brown, and ten per packs. We also found that consumers were also willing to pay more for their preferred attributes. The results found in the study provide valuable inputs to producers or marketers to improve their marketing efforts as well as market positioning, in line with the demanded eggs attributes.
This study investigates productivity growth and efficiency of Large Scale Enterprises (LSEs) in the
Malaysian food processing industry. Malmquist productivity index of Data Envelopment Analysis (DEA) was employed to five-digit panel data for the period of 2000-2006. The findings suggest that average Technical Efficiency (TE) of the LSEs was 0.683 during the period of observation, which indicates that the industries are able to expand their output as much as 31.7 percent by using the same level of inputs. Total Factor Productivity (TFP) growth was positive at 7.3 percent, which is contributed by a Technical Efficiency Change (EFCH) of 4.3 percent and Technological Change (TECH) of 3.0 percent. Sub industries of manufacturing alcohol and wine as well as the processing and preserving of meat and meat products shows the highest productivity growth at 84.8 percent and 47.5 percent respectively. On the other hand, the sub industries of processing and preserving poultry and poultry products together with the manufacturing of chocolate are those which have the lowest TFP growth at -30.5percent and -14.8 percent respectively. The significant determinants of the productivity growth, with a positive relationship are public infrastructure, IT expenditure and foreign ownership, while energy price is the determinant with a negative relationship. The main contributor to the TFP growth of the LSEs in the Malaysian food processing industry is EFCH, however, the LSEs can also improve the TFP growth by moving forward the production frontier as well.
The growth of the Malaysian’s per capita income has generally empowered consumers to have more choices for food, more purchasing power, health consciousness and demand for more nutritional values of their food intake. Motivated by the changes in Malaysian consumer’s food choice, a conjoint analysis was performed to investigate Malaysian consumers’ demand for rice attributes and how much consumers are willing to pay for the demanded attribute. A conjoint analysis is a method used in identifying and understanding the combined effects of product attributes on preferences for a product or service. In conjoint analysis, utility is the conceptual basis for assessing the value of a product or service, where individuals make decisions between bundles of products based on their budget constraints. The findings suggested that the most important attribute for rice was food safety, followed by taste and size of grain. Consumers were also willing to pay premium prices for the demanded attributes. The findings would have positive implications for the agrifood industry if it responds effectively to translate into business opportunities to these changes.