Exploring the Dynamics of Paddy Production in Northern Malaysia: Technical Advancements and Efficiency Changes Through the DEA-Malmquist Index

Abstract

Paddy production is a vital sector in Malaysia’s agricultural economy, with Pertubuhan Peladang Kawasan (PPKs) under the Muda Agricultural Development Authority (MADA) playing a key role in sustaining yields and sector resilience. This study evaluates the efficiency and productivity changes of 27 PPKs over four planting seasons (Season 2, 2020 – Season 1, 2022) using output-oriented Data Envelopment Analysis (DEA) with the BCC model and the Malmquist Productivity Index (MPI). DEA results show an average efficiency score of 0.892 (89.2%), with PPK Arau and PPK Kangar achieving full efficiency consistently. However, 92.6% of the PPKs experienced inefficiency in at least one season, with the lowest score recorded in Season 2, 2020. The MPI analysis assessed productivity changes across three phases: Season 2, 2020 – Season 1, 2021; Season 1, 2021 – Season 2, 2021; and Season 2, 2021 – Season 1, 2022. The findings revealed a mixed performance trend, where several PPKs experienced productivity growth while others saw declines. Titi Haji Idris recorded the highest MPI score (2.8921), indicating strong productivity improvement overall, although a temporary drop was observed in Phase 2 (0.7787) before recovering. The lowest score was recorded by Hutan Kampung (0.6543), whereas Arau maintained an MPI score close to 1.000 across all three phases, indicating stable productivity performance. These findings highlight the need for targeted interventions, efficient resource allocation, and the adoption of technology. Benchmarking against high-performing PPKs can support strategic planning and strengthen the sustainability of national paddy production.