Determinants of Technical Efficiency of Sugarcane Production among Small Holder Farmers in Lao PDR

Poungchompu, Supaporn

doi:10.3844/ajassp.2015.644.649

Cited by 9 publications

(7 citation statements)

References 11 publications

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“…Education plays a great role in adoption of most new technologies that normally calls for better management including consistent record keeping and proper use of the various inputs in sugarcane (Kibirige, 2008). The results of the current study conforms to Muhammad (2015), Supaporn (2015), Kibirige et al (2014), Thabethe et al (2014, Ali et al (2013) and Kibirige (2013)'s findings where educational level of a farmer was positively related to technical efficiency. However, Padilla-Fernandez and Nuthall (2001) found educational level of a farmer to be a weak predictor of technical efficiency while Kibirige et al (2016) found educational level of a farmer to be negatively related to technical efficiency.…”

Section: Factors Affecting Production Efficiencysupporting

confidence: 91%

“…Age represents general decision making ability and knowledge of production process. Farmer's age is accepted to have great contribution towards personal learning, personality development, attitude and skills with correct judgment (Supaporn, 2015;Muhammad, 2015;Kibirige et al, 2014;Aung, 2012;Ayaz & Hussain, 2011). Thabethe et al (2014) argued that older farmers appear to be more efficient than younger farmers because of their good managerial skills, which they had learnt over time.…”

Section: Factors Affecting Production Efficiencymentioning

confidence: 99%

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Efficiency and Goals of Smallholder Sugarcane Farmers in Eswatini (Swaziland)

Kibirige¹,

Singh²

2021

JAS

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Establishing farmers’ goals is very essential for increased productivity and profitability in sugarcane production. This study aimed at establishing farmers’ goals and their relationship with farmers’ efficiency. The study used primary data collected from 147smallholder sugarcane farmers. This study employed factor analysis to generate goal orientations of farmers and estimated farmers’ efficiency using Data Envelopment Analysis (DEA) model. The findings of the study revealed that the majority of the farmers interviewed were females (57%), with 39% of farmers’ attained secondary education, average mean age of 56 years, farming experience of 10 years and cultivate about 4.5 hectares of sugarcane. Farmers’ goal orientations generated were instrumental orientation, sustainable orientation, family and leisure orientation, expressive orientation and social status orientation. Farmers’ estimated technical efficiency, allocative efficiency and economic efficiency were 89.57%, 84.94% and 76.43%, respectively. The results suggest that farmers can still improve efficiencies without changing the available technologies. The drivers of farmers’ technical efficiency were education, age, instrumental orientation and social status. Farmers’ allocative efficiency was influenced by age, family and leisure orientation and social status orientation. The determinants of farmers’ economic efficiency were education, family and leisure orientation, age and social status orientation. The study recommends formulating rural development programmes and policies that target sugarcane farmers’ engagement and participation in sugarcane production and also consider farmers’ oriented goals and socio-economic drivers for significant increase in productivity.

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Section: Factors Affecting Production Efficiencysupporting

confidence: 91%

Section: Factors Affecting Production Efficiencymentioning

confidence: 99%

Efficiency and Goals of Smallholder Sugarcane Farmers in Eswatini (Swaziland)

Kibirige¹,

Singh²

2021

JAS

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“…Research on farming efficiency (technical efficiency, allocative, and economic) have been carried out in various regions in Indonesia and the world. The range of technical efficiency, allocative and economic in various studies are relatively diverse, but Bakhsh et al (2006); Kea et al (2016); Singh et al (2018) ;Supaporn, (2015); Mutenheri et al (2017) found that the level of efficiency of farmers amounted to 0.70 can be said to have efficient, while Coelli et al (1998) stated that the level of farmer efficiency of 0.80 can be said to have been efficient. Sugarcane production efficiency study in East Java was conducted by Susilowati and Tinaprilla, (2012); Purnamasari et al (2018).…”

Section: Introductionmentioning

confidence: 99%

Evaluation of Bud Chip Method to Increase Sugarcane Productivity (Case Study of Pt Perkebunan Nusantara X)

Zainuddin

Wibowo

Setyawati

2020

jma

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Bud chip method has proven to improve the productivity of sugarcane and produce more efficient, but still a few farmers who use it. This is due to higher production costs and sugarcane farmers are still not technically skilled. This study aimed to analyze the technical efficiency of sugarcane farming with conventional methods and bud chips in the PTPN X and to identify the factors underlying the farmers to use methods of bud chips in the PTPN X. The number of samples used as many as 31 farmers (11 farmers sugarcane bud chip method and 20 sugarcane farmers mule method). This study uses a stochastic frontier production function approach with Stochastic Frontier production function Cobb Douglas and using a logistic regression model. The results showed the value of technical efficiency index sugarcane growers with bud chip method is efficient (TE = 0.98) whereas the sugarcane farmers who use mule systems have not been efficiently categorized (TE= 0.78). Bud chip method has been proven can improve technical efficiency because it can result in higher productivity. The underlying things that make farmers choose the bud chip method are extensive cultivation, education level and ease of sugarcane cultivation with the bud chip method. Therefore, sugarcane productivity in PTPN X can be increased through the use of the bud chip method accompanied by an increase in sugarcane land area and training for farmers.

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“…The TFP growth is claimed to contribute negligibly to the output growth by merely 0.03% points (p. 64). As mentioned, there are more studies on agriculture that have applied the frontier and inefficiency model, including Boundeth et al (2012) and Viengpasith et al (2012) in the case of maize; Supaporn (2015) in the case of sugarcane; Soukkhamthat and Wong (2016) in the case of cassava; and Inthavong (2005), Phetsamone (2012), and Sayavong (2018) in the case of rice production. Since this study was focused solely on the manufacturing industry, these have not been included in the review.…”

Section: Literature Reviewmentioning

confidence: 99%

Technical inefficiency of the manufacturing sector in Laos: a case study of the firm survey

Sayavong

2021

JABES

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PurposeThis study aims to unlock the path of growth for sustainable economic development and accomplish the government's vision 2030 by ameliorating the productivity of the manufacturing sector in Laos.Design/methodology/approachThis study applied cross-sectional data of 2,009 firms from the national firm survey, namely the Economic Census Survey (ECS), in 2012/13 in addition to employing the stochastic frontier analysis (SFA) to assess the production frontier and factors behind the technical inefficiency to arrive at policy recommendations.FindingsThe study found that the efficiency level varied across subindustries with an average of 72.51% in full potential production. Out of the five classified groups, Sub4 (chemical and plastic) was found to be the most efficient manufacturer, while the rest in order are Sub1 (food and beverage), Sub5 (furniture and others), Sub2 (garment and textile), and Sub3 (paper and printing), providing the evidence to improve the technical efficiency. This study discovered that the firm's size, accounting system and credit access are crucial to enhancing the production efficiency of all sampling firms. However, these factors might be subject to specific industries.Practical implicationsFor the implication to the business community and policymakers, the findings of this study could be a reference in terms of which areas they should concentrate on to improve the technical efficiency as a part of productivity in the manufacturing industry. For instance, it suggests that firms could improve their production efficiency by introducing the accounting system, laborers' skills (education of managers) and engaging in international trade activities. Additionally, it asks policymakers to help private firms by improving the infrastructure, credit access, training and trade facilitation.Originality/valueIt is believed that, as the major contribution in Lao literature, this study is the first research applying the largest data from the national survey – the Lao ECS – examining the technical efficiency in the manufacturing sector in the country, and overcoming the gap of the previous research which recruited few policy variables and applied a small sample size in one specific industry. Therefore, the findings of this study impart more insights into the analysis, providing more effective and credible recommendations to policymakers and firms to improve their technical efficiency and, consequently, their competitiveness.

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Determinants of Technical Efficiency of Sugarcane Production among Small Holder Farmers in Lao PDR

Cited by 9 publications

References 11 publications

Efficiency and Goals of Smallholder Sugarcane Farmers in Eswatini (Swaziland)

Efficiency and Goals of Smallholder Sugarcane Farmers in Eswatini (Swaziland)

Evaluation of Bud Chip Method to Increase Sugarcane Productivity (Case Study of Pt Perkebunan Nusantara X)

Technical inefficiency of the manufacturing sector in Laos: a case study of the firm survey

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