Analysing Technical Efficiency of Charolais mixed breed ( Lembu Sado) Farms in Terengganu

The ruminant industry in Malaysia is an important sector since it produces a source of protein for the country and also provides employment opportunities. The number of people eating meat in Malaysia is on the rise, but the country's current capacity for meat production cannot keep up with the rising demand. As a result, taking into account the level of technical efficiency can assist farmers in reducing the amount of inputs they use while keeping the output level stable, which ultimately results in an increase in production. The purpose of this study is to identify the level of technical efficiency of farms in Terengganu that raised Charolais mixed breed cattle or Lembu Sado cattle as well as to determine the relationship between technical inefficiency and the characteristics of farm owners or managers of Lembu Sado. For the purpose of data collection, structured questionnaires were given to a total of 86 respondents residing in and around the state of Terengganu utilizing procedures for convenience sampling. For the purpose of this study, a cross-sectional survey approach was utilized, and primary data on farm yield, input usage, and farmer demographics were collected. R software in its version 4.1.6 was used to carry out the Data Envelopment Analysis, and Stata Software in its version 16.1 was used for the second step, which involved running the truncated bootstrap regression analysis. According to the findings, the average level of technical efficiency across all Lembu Sado farms is 0.74. This demonstrates that these farms have the potential to reduce their farming inputs by 26.4% while maintaining the same level of output. The findings of the second stage point out that education, farming experience and finance from the government have a negative association with technical inefficiency scores while, off farm income has a positive relation with technical inefficiency scores.