Economic and marketing evaluation of the designer egg industry in Malaysia

Abu Kasim Ali, . and Roslina Ali, . and Wong Hee Kum, . and Rawaida Rusli, . Economic and marketing evaluation of the designer egg industry in Malaysia. pp. 1-6. ISSN 1823-8149

The main purpose of this study is to review the current status and market potential of a designer egg industry and to analyse industry and market structures for designer eggs in Malaysia. A multistage purposive sampling method was applied to select approximately 70 (N42) of designer and specialty poultry egg producers in Malaysia. Gini coefficient analysis was applied to identify the industry and market structures for designer eggs. The coefficient was high at 0.764 implying market shares and revenues among designer egg producers were significantly inequitably distributed. This result was consistent with the calculation of Herfindahl-Hirshman Index (HHI) at 0.386 classified as oligopolistic market structure which tends to increase the concentration of wealth and income of the producer resulting in high barriers to enter the market and industry. Theoretically this structure reflected inefficient marketing mechanisms in the industry and oligopolistic nature of the market which revealed that the production was monopolized by large scale operators. Determining this structural market in the industry provided a basis for policy measures towards creating a fairer market competition through minimizing collusion and facilitating easier entry. This would ensure the development of a more efficient and competitive designer egg industry in the long run.

Full text available from: Official URL: http://etmr.mardi.gov.my/Content/ETMR%20Vol.%207%2...

Abstract

The main purpose of this study is to review the current status and market potential of a designer egg industry and to analyse industry and market structures for designer eggs in Malaysia. A multistage purposive sampling method was applied to select approximately 70 (N42) of designer and specialty poultry egg producers in Malaysia. Gini coefficient analysis was applied to identify the industry and market structures for designer eggs. The coefficient was high at 0.764 implying market shares and revenues among designer egg producers were significantly inequitably distributed. This result was consistent with the calculation of Herfindahl-Hirshman Index (HHI) at 0.386 classified as oligopolistic market structure which tends to increase the concentration of wealth and income of the producer resulting in high barriers to enter the market and industry. Theoretically this structure reflected inefficient marketing mechanisms in the industry and oligopolistic nature of the market which revealed that the production was monopolized by large scale operators. Determining this structural market in the industry provided a basis for policy measures towards creating a fairer market competition through minimizing collusion and facilitating easier entry. This would ensure the development of a more efficient and competitive designer egg industry in the long run.

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Item Type:	Article
AGROVOC Term:	Egg industry
AGROVOC Term:	Designer foods
AGROVOC Term:	Economics
AGROVOC Term:	Marketing
AGROVOC Term:	Egg production
AGROVOC Term:	Monopolies
AGROVOC Term:	stakeholders
AGROVOC Term:	Efficiency
AGROVOC Term:	Market competition
Depositing User:	Mr. AFANDI ABDUL MALEK
Last Modified:	24 Apr 2025 00:55
URI:	http://webagris.upm.edu.my/id/eprint/9721

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