Selection of Integrators in Malaysia’s local broiler industry: Prioritization of critical factors based on Growers’ perspectives

• Main Authors: Lamsali, Hendrik, Ariffin, Ahmad Shabudin
• Format: Conference or Workshop Item
• Language: English
• Published: 2016
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/24357/1/ICIM%202016%20200%20207.pdf; http://repo.uum.edu.my/24357/

The Malaysian broiler industry is an integral component of the agriculture sector that generate sustainable food supplies to almost 30 million populations in the country. The industry comprises of conventional and commercial farms for which the latter is more sustainable with contract farming schemes and involvement of major integrators and growers.The survival of local growers as one of the important players within broiler’s supply chain hierarchy is largely depending on the integrators.Hence, this study aims to identify critical factors that local growers consider when selecting their integrators. Specifically, the objective is to prioritize integrators’ selection factors and to determine the critical ranking of each factor. Analytical Hierarchy Process (AHP) approach is employed to evaluate and rank the importance of the said factors based on inputs from selected broilers’ representatives.Five main criteria are identified and considered in the AHP analysis that include relationships, reliability, logistics, input and price. The result indicates that reliability had been given the highest priority, followed by pricing factor, input criteria, relationships with the integrator, and finally the logistics facility.For overall sub-criteria, supplied quantity had been ranked number one, followed by price of raw materials, availability of day-old chick, quality conformance, technology sharing, and in-house logistics facility.In the end, how this study impacted local broiler industry is explained. Certain issues and future direction of this study are also discussed.