Vegetable production is one important agricultural product in crop production after wheat and potatoes production in Mongolia. Currently, household production dominates in total vegetable production (approximately 80 percent). Thus, the purposes of this paper were to measure technical efficiency and to determine influencing factors inefficiency on vegetable household production in Mongolia by using Stochastic production frontier analysis (SFA). Primary data was collected from randomly selected 260 vegetable households of Mongolia in 2019. The empirical result indicated that the average technical efficiency of the sampled vegetable household was 64.6 % (range between 43.2% and 99.9%) or they lost about 35.4% of the potential output due to technical inefficiency. We found that land and labor are the main influencing input factors of the household’s vegetable production. Also, the result of the technical inefficiency model, variables of age, sex, experience, and credit use obtained a negative relationship with inefficiency. The other variables are family size, education level, land fragmentation index was positively affected by technical inefficiency.
Crop production has been always main important sector but relatively small part of the Mongolian economy. As of 2017, agricultural sector produced approximately 11 percent of total GDP, which of agricultural production is more than 80 percent of livestock sector and less than 20 percent of crop production (NSO, 2017). Mongolia has a vast area of territory (18 th -largest country in the world). However, of the 80% of the land covered with grassland and pastureland, crops have never been produced on less than 1% of the total land area of Mongolia (FAO, 2014). This study reviews Mongolia's crop production' current situation, focusing on Mongolia's crops supply level, self-sufficient rate and government policy in the future. The results show that Mongolia' policies for ensuring food supply level will be increased and Mongolia will pay attention to more domestic production. Mongolia's crops self-sufficiency rate is 80 percent of flour and flour products, 107.7 percent of potato, 33.2 percent of vegetables and 0.7 percent of fruits and berries. By 2020, flour and flour products self-sufficiency rate are likely to increase to 100 percent, vegetables to 79 percent and fruits to 7.8 percent with associated government policy. However, fruits are still reliance on import.
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