Technical efficiency analysis of flint-type white corn production in Quezon and Cagayan Provinces in the Philippines

Rice, white corn, saba, sweet potato and cassava are the Philippines' major food staples. Filipino consumers, however, generally prefer rice and so the country's farmers give it preference in land allocation. One way to address the Philippines' need for self-sufficiency is to promote the consumption and production of alternative staples like white corn, thus it is important to understand the condition of the country's white corn supply. Toward this end, this study estimated the technical efficiency of white corn and its corresponding determinants using econometric models. The goal was to assess whether there is room to improve productivity, which is essential in increasing the supply, so that it matches efforts to promote white corn consumption. The study used a cross-section of farm-level data on input and output coefficients and the socio-economic characteristics of 80 and 76 randomly selected flint-type white corn farmers in Quezon and Cagayan [Philippines], respectively. The production models were estimated using the maximum likelihood method to generate: parameter estimates; socio-economic factors affecting technical efficiency; and minimum, maximum, and mean technical efficiency scores. Productivity of flint-type white corn production in Quezon and Cagayan was found to be positively influenced by the amount of seed used, level of nitrogen fertilizer applied, and labor devoted to postharvest activities. This finding is consistent across the three production functions (i.e., Quezon, Cagayan, and pooled models). The mean technical efficiency score of farms is 64% in Quezon and 54% in Cagayan. Technical efficiency can be improved by increasing the percentage allocation of produce sold to the market in Quezon and Cagayan. These results indicate that white corn productivity can potentially be improved in the Philippines. In essence, there is a need to close the gap between the minimum and maximum technical efficiencies of white corn farms in Quezon and Cagayan through technology-driven interventions.