Technical Efficiency of Oil Palm Production under a Large Agricultural Plot Scheme in Thailand

Juyjaeng, Cha-on; Suwanmanee, Suneeporn; Mankeb, Panya

doi:10.3923/ajsr.2018.472.479

Cited by 6 publications

(10 citation statements)

References 16 publications

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“…The variable number of productive trees had the highest elasticity in both management patterns, which implies that a percentage increase in the land size has a more considerable influence on oil palm production than other inputs. This finding was consistent with Juyjaeng et al's (2018) study on farmers who were not members of the Large Agricultural Plot Scheme (LAPS) in Thailand. The variable of productive trees was more responsive in independent farmers group than supported farmers and the age of plant input.…”

Section: Estimation Of the Stochastic Frontier Production Functionsupporting

confidence: 91%

Efficiency of Oil Palm Smallholders in Indonesia: A Meta-Frontier Approach

Varina¹,

Hartoyo²,

Kusnadi³

et al. 2020

jma

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This research aims to evaluate the performance production and technical efficiency of oil palm production in Indonesia based on the management pattern (independent farmers and supported farmers). The secondary data were used from the Estate Cultivation Household Survey (ST2013 SKB) conducted by BPS-Statistics Indonesia. The empirical analysis involved using a meta-frontier approach, allowing one to decompose efficiency into grouplevel technical efficiency and technology gaps. The results indicate that the output of each management pattern behind their potential with the mean technical efficiency of 0,6789 and 0,7127 for independent farmers and supported farmers, respectively. The technology gap ratio statistics showed that the farmers had adopted the best available smallholder production technology in their farming. However, independent farmers were slightly more optimal than supported farmers. The efficiency measure generated from the meta-frontier revealed that supported farmers were more efficient, where the primary source of inefficiency came from managerial inefficiency. Thus, the policies to increase the production of oil palm smallholders must focus on the improvement of technical skills and managerial capabilities of farmers on the efficient use of resources and advanced technology by considering each characteristic of each management pattern.

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Section: Estimation Of the Stochastic Frontier Production Functionsupporting

confidence: 91%

Efficiency of Oil Palm Smallholders in Indonesia: A Meta-Frontier Approach

Varina¹,

Hartoyo²,

Kusnadi³

et al. 2020

jma

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“…There are no studies on the technical efficiencies covering almost all of oil palm production areas in Indonesia. Technically efficient approach (TE) to investigate the determinants of performance and production efficiency of oil palm smallholders have been carried out by authors such Hasnah et al (2004) in West Sumatra Indonesia, Alwarritzi et al (2015) in Riau Indonesia; Juyjaeng et al (2018) in Thailand; Tijani et al (2017) in Johor Malaysia.…”

Section: Literature Reviewmentioning

confidence: 99%

“…A study on the efficiency of oil palm production in Thailand by Juyjaeng et al (2018) showed that the TE of farmer group members of the Large Agricultural Plot Scheme (LAPS) was higher (0.63) than that of non-members (0.52). The determinant of technical efficiency meadow member LAPS is the length of farming, while it is the age of the farmer for non-LAPS.…”

Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Technical Efficiency of Oil Palm Smallholders in Indonesia

Varina¹,

Hartoyo²,

Kusnadi³

et al. 2020

IJEFI

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The main objective of the present study is to analyze the technical efficiency (TE) and evaluate its determinant in smallholder oil palm farming in Indonesia. The stochastic frontier analysis was applied to 20,409 selected oil palm farmers from the results of the 2014 Estate Cultivation Household Survey (ST2013 SKB) conducted by BPS-Statistics Indonesia. The results showed that all the input variables had a positive influence on oil palm production along with existing inefficiencies among heterogeneous smallholder farmers. They also indicated that the mean level of the TE among oil palm smallholders was 0.6694. Furthermore, variables such as farmer age, education, type of farmer, and location of the farm had positive and significant effects on TE. Therefore, the development policies in the oil palm smallholder sector might focus on promoting education and facilitate the accessibility of farmers to extension services by giving guidance on farming management based on environmentally friendly principles to improve production regarding land expansion.

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“…In the research of technical efficiency of palm oil in Cantral Africa Republic, the education is also an influencing factor to increase the efficiency of farmers 5 . Education and age also significantly contributed the technical efficiency of rubber farmers in Nahon, Thailand 6 .…”

Section: Introductionmentioning

confidence: 99%

“…Age and extension also the efficiency of farmers in Ghana 11 . The technical efficiency is also affected by age of the farmers in Thailand Palm Oil plantation 6 , in East Java, Indonesia 12 and in Ethopia 13 . Extension service and education have also significantly affected the technical efficiency of farmers 12 , 14 , 15 .…”

Section: Introductionmentioning

confidence: 99%

Analysis of factors affecting the technical inefficiency on Indonesian palm oil plantation

Abdul

Sari

Haryanto

et al. 2022

Sci Rep

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Indonesia’s palm oil plantation is dominated by three actors. Among three actors, the productivity of smallholder farmers has the lowest productivity. This study aims to analyze the value of technical efficiency and factors affecting the technical inefficiency of palm oil plantations in Indonesia by using the stochastic frontier analysis based on the translog production function. The data used in this study are taken from the Central Statistics Agency (Agricultural Business Household Income Survey) in 2013. The number of samples used was 14,367 farmers. The results revealed that the average value of technical efficiency (58.32%) is still far to reach its optimal, showing that there is still to increase in the efficiency of palm oil plantations in Indonesia. The production function suggests that increasing the number of trees can help to increase the number of outputs. To enhance the technical efficiency, education, age, planting system, seed quality, extension service, and plasma farmer are the significant factors.

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Technical Efficiency of Oil Palm Production under a Large Agricultural Plot Scheme in Thailand

Cited by 6 publications

References 16 publications

Efficiency of Oil Palm Smallholders in Indonesia: A Meta-Frontier Approach

Efficiency of Oil Palm Smallholders in Indonesia: A Meta-Frontier Approach

The Determinants of Technical Efficiency of Oil Palm Smallholders in Indonesia

Analysis of factors affecting the technical inefficiency on Indonesian palm oil plantation

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