Cost efficiency estimates of maize production in Nepal: a case study of the Chitwan district
2009
Paudel, P.,Ehime Univ. (Japan). The United Graduate School of Agricultural Sciences | Matsuoka, A.,Ehime Univ. (Japan). Faculty of Agriculture
This study was carried out to analyze the cost efficiency of maize production in the Chitwan district, Nepal, with a view to predict economic efficiencies using stochastic frontier cost function. The primary data were collected from 180 maize farmers representing 12 village development committees, including one municipality of the district, during May-June 2005 for the cropping year 2004-2005. The use of manure accounted for the highest share in the production cost, followed by labour and tractor costs. The maximum-likelihood estimates of the parameters revealed that estimated coefficients of cost of tractor, animal power, labour, fertilizer, manure, seed and maize output gave positive and significant coefficients. Quantitative estimates obtained from the cost function show the mean cost efficiency of 1.634. The analysis of scale effect among maize farms shows that the maize farms experienced an increasing return to scale, it means that the output increased more proportionately than the total production costs.
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