Connectivity of Sustainability Goals among Beef Cattle Producers in Peninsular Malaysia: Structural Equation Modelling Approach

Abstract

The market concentration for live cattle in Malaysia is oligopolistic. The market is controlled by a few firms and is less competitive in price. Despite the challenges in this industry, there is still participation from smallholders and commercial beef cattle producers. The motivation for this study is to support the latest Malaysian National Agrofood Policy (NAP) 2.0, which provides three general principles that should be achieved for a competitive industry. The sustainability goals of the industry are regularly explained in terms of three essential pillars: economic, social, and environmental aspects. This study investigates the connection between each sustainability goal component for beef cattle farm operations. The connectivity of these three sustainability goals was explained using the Structural Equation Modeling (SEM) approach. All three pillars are connected to each other. The finding shows the connectivity of social goals with management and lifestyle constructs is the most vital element in sustaining the beef cattle operation in Malaysia. The structural model gained from this research is suggested to be applied as a framework in policy making and considered when conducting the programs, delivering the financial aid, and providing extension services. The authorities should appreciate the social responsibility shown by the smallholders by providing them with more networking opportunities and protecting them from the cartel pricing that might be practiced by commercial farms and established associations. This research contributes to the outcomes in terms of a general framework and justifies the factors that contribute to the sustainability of the beef cattle industry, which helps the authority and beef cattle producers understand the connection between producers’ goals.