Economic analysis of hog production in selected southern Tagalog provinces [in Philippines] in 1984
1985
Buetre, B.L.
The production function analysis using the Cobb-Douglas model was employed to determine the productivity and efficiency of the farms which were classified into three scales, namely: small, medium, and large farms, and represented by dummy variables. The variables considered to explain the variations in production of hogs were feed, labor, veterinary drugs and initial weight of weanlings. Profitability was assessed by making an analysis on the costs and returns for each scale of farm. Cost structure analysis was also employed to determine the importance of each cost item. The empirical findings of this study indicated that the large farms were more productive compared with the medium and small scale farms. They obtained higher output than the two smaller types of farms. They were also effective in reducing costs and face higher output price but lower input prices. These differences made the large farms as the most profitable scale of operation while the backyard or small scale farms were the least profitable of all. The returns to scale in all of the farms was estimated to be 0.69 which implied that if all inputs were increased by 10 percent, output would increase by 6.9 percent. Feed which had an elasticity of 0.31 had the highest influence to production while labor had the lowest elasticity of 0.075. Veterinary drugs statistically failed to explain its effect to production of hogs for slaughter. The findings suggested that government intervention was needed in improving the productivity and reducing costs on backyard and medium scale farms by improving its services and making available the crucial production factors
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