Risk management for poultry farming industry in Kedah

The poultry farming sector faces many complex challenges, emphasising the need for a comprehensive model to assess and mitigate production risks. This study introduces an integrated framework that merges the Analytic hierarchy process (AHP) and Data Envelopment Analysis (DEA) to effectively identify, prioritise, and manage key production risks in poultry farming. The framework focuses explicitly on nutritional and management risks. AHP categorises risks by leveraging expert opinions to gauge their significance. Subsequently, two primary risks, nutritional and management risks, are selected based on AHP outcomes and used as inputs for the DEA model. The DEA model, utilising the Variable Return Scale (VRS) methodology, assesses the efficiency of poultry farms in Kedah by considering inputs such as nutritional and management practices and outputs such as net profit and poultry weight. The findings indicate that poultry farms in Kedah exhibit varying levels of efficiency, with many farms operating below optimal efficiency due to inadequate nutritional management and suboptimal farm practices. The results suggest that improvements in these areas could enhance farm performance and profitability, contributing to greater resilience against production risks. This research addresses the detrimental impact of increasing production risks on poultry production, financial risk, and farmer profitability. Leveraging a Python-based DEA analysis, the goal is to offer actionable insights for farmers, policymakers, and industry stakeholders, focusing on fostering sustainable practices and bolstering resilience against the challenges posed by production risks in the poultry sector. The findings of this research aim to contribute not only to the academic discourse but also to practical applications, striving to elevate the overall performance and sustainability of poultry farming practices in the face of dynamic and multifaceted challenges. Furthermore, this research contributes to achieving Sustainable development goals (SDGs) related to food security and hunger eradication