Written Paper

Technical efficiency in the production of sugarcane in Central Negros Area, Philippines: an application of data envelopment analysis  [2009]

Padilla-Fernandez, M.D., Sugar Regulatory Administration, Quezon City (Philippines) Nuthall, P.L., Lincoln Univ., Canterbury (New Zealand)

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This paper attempts to identify the sources of input use inefficiency in sugar cane production in t he Central Negros area, Philippines. Non-parametric Data Envelopment Analysis was used to determine the relative technical, scale and overall technical efficiencies of individual farms which use the same type of inputs and produce the same output (cane). Under a specification of variable returns to scale, the mean technical, scale and overall technical efficiency indices were estimated to be 0.7580, 0.9884 and 0.7298, respectively. The major source of overall inefficiencies appears to be technical inefficiency rather than the scale effect. Input use differences between the technically efficient and inefficient farms are highly significant in terms of area, seeds and labor inputs. There was no significant difference in the use of fertilizer and power inputs. For many farms, labor is the most binding constraint, followed by land and power inputs while seeds and NPK fertilizers are not binding. This paper also provides evidence that the overall technical efficiency of sugar cane farmers in Central Negros is positively related to farmer's age and experience, access to credit, nitrogen fertilizer application, soil type and farm size.

From the journal

Journal of ISSAAS [International Society for Southeast Asian Agricultural Sciences] (Philippines)

ISSN : 0859-3132