How Do Small-Scale Cassava Producers Overcome Global Issues? Cassava Profit and Technical Efficiency in Cambodia

Abstract

Cassava producers face numerous economic and natural challenges that impact their profitability. Economically, they encounter price fluctuations for cassava chips and fresh tubers in the global market. Additionally, unexpected weather conditions and diseases affect production. Given the volatility of global prices and unpredictable natural events, producers employ various strategies to maximize their diminishing profits. However, it remains uncertain which practices are more effective in achieving profitability. The factors that influence profitability in farming, such as density, replanting, and the choice of selling the product, either fresh or dry, have been identified in this study. Therefore, the objective of this study is to investigate the determinant factors, including inputs to profit efficiency and farming strategies specific to cassava plantations, that lead to enhanced profit capture. We employ a Cobb-Douglas stochastic frontier model to analyze the technical efficiency of profit capture. Our study suggests that producers should avoid buying additional bunches for replanting and focus on planting at an optimized density to maximize profits. Other strategies showed uncertain outcomes. Knowledge of correct farming practices can improve efficiency and profit optimization.