Economic analysis of rice production of the seed center number 6's contract and non-contract growers in Changwat Phatthalung [Thailand],1987/88 crop year
1989
Orasa Supagetgosole
Results obtained from the estimated Cobb-Douglas production function for the rice production of the contract growers indicated that factors affecting rice yield were labor and machine. For the noncontract rice the estimated Cobb-Douglas production function showed that the factors influencing the rice yield were labor and expenses on fertilizer and other chemicals. However, the Cobb-Douglas production functions of rice production of both groups of farmers implied a decreasing return to the scale with the coefficient of 0.8748 and 0.9298 for the contract and non-contract growers, respectively. Cost and return analysis of rice production showed that total cost of rice production for the contract growers was 1,304.94 baht per rai with 926.34 baht of variable cost and 378.60 baht of fixed cost. Total income from rice production was 1,887.75 baht per rai. After deducting total cost from the total income net profit of rice production for the contract growers was 582.81 baht per rai or 1.39 baht per kg. For the non-contract growers the total cost of rice production was about 1,041.92 baht per rai. These costs could be classified into 765.69 baht per rai of variable cost and 276.23 baht of fixed cost. Total income obtained from rice production was 1,080.62 baht per rai. The net profit after deducting total cost out of total income was 38.70 baht per rai or 0.12 baht per kg. The contract growers showed their impressive performance by earning more profit than the non-contract growers.
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