scholarly journals The Impact of Agricultural Cooperatives on Efficiency and Productivity: Evidence from Olive-growing Farms in West Bank of Palestine

New Medit ◽  
2020 ◽  
Vol 19 (3) ◽  
Author(s):  
Kenichi KASHIWAGI

Collective action by farmers including the development of cooperatives is regarded as one of solutions to overcome low productivity. This study investigates the impact of agricultural cooperative on technical efficiency (TE) and total factor productivity (TFP) of olive farms in the West Bank of Palestine. Using cross-section data of olive-growing farms in Jenin governorate, we estimated a stochastic frontier production function with inefficiency components. TFP was also estimated by residual approach. We employed propensity score matching to reduce self-selection bias in becoming a member of the cooperative. Results suggest that cooperative membership has a positive impact on TE and TFP, as joining a cooperative raises the TE by 10.16 to 10.52 percentage points. We interpret access to credits, land and productive olive seedlings, and extension services provided by cooperatives are possible pathways that affect TE and TFP. Due to the existence of huge inefficiency and low land productivity of olive farms in Jenin, we imply participation in cooperatives is an effective strategy for them to catch up with productive farms in the Mediterranean region.

2020 ◽  
Author(s):  
Surya Prasad Adhikari ◽  
Yuga Nath Ghimire ◽  
Krishna Prasad Timsina ◽  
Samaya Gairhe

Abstract The national average potato productivity is far below as compared to other neighbouring countries due to several production constraints. Variety and irrigation are the important factors to increase production. The aim of this study is to find the technical efficiency of potato production and to estimate the impact of variety type and irrigation on technical efficiency. A multistage random sampling procedure was employed to select 300 potato farmers from three districts of Nepal. The study used a stochastic frontier production function model to find the production elasticity coefficients of inputs, determinants of efficiency, and technical efficiency of potato farmers. Results showed that variety type and irrigation have a significant positive impact on the technical efficiency of potato production. Nepalese improved varieties adopter farmers were more efficient (73%) than Indian (66%) and local (59%) potato varieties. Likewise, Irrigated potato farming has higher efficiency (71%) than rainfed potato (61%) farming. The mean technical efficiency value of potato farmers was 69 per cent and farmers can increase it with better use of available resources. It is suggested that use of improved potato varieties and irrigation application along with proper amounts of inputs used help to improve technical efficiency of potato farmers.


2020 ◽  
Vol 51 (6) ◽  
pp. 1634-1643
Author(s):  
Al-Hachami & et al.

This study aimed to estimate the stochastic frontier production function and the inefficiency function and technical efficiency of potato production by using cross-section data collected from 173 potato farms that were randomly selected in Baghdad province/ Yusifiyah for production season 2016. The results showed that 90.6% of inefficiency in production was due to technical inefficiency. Also, there was a significant relationship between the variables of inefficiency function and the inefficiency of farms. The values of the parameters of the stochastic frontier production function were positive and significant for both human work hours and the amount of seeds. However, the parameter of DAP fertilizer was negative and significant. The estimation of the technical inefficiency function showed that its parameters were significant for both the local seed provider and the agricultural season (fall), while the parameters experience in growing potatoes and the number of irrigations were significant and their impact was negative on the inefficiency. The results also showed that the technical efficiency of the study sample (50%) on average. The researchers recommended the necessity of providing imported seed tubers for the increased productivity in dunum to achieve technical efficiency.


2017 ◽  
Vol 6 (2) ◽  
pp. 145-160 ◽  
Author(s):  
Nurlela Machmuddin ◽  
Nunung Kusnadi ◽  
Yusman Syaukat

The purpose of  this study was to analyze the economic efficiency of organic rice farming compared conventional rice farming. This study conducted using a cross section data from 100 farmers in Tasikmalaya  Regency. The farmers are selected using proportionate stratified random sampling technique which is divided into equal size of two levels. Study was performed using stochastic frontier production function and estimated by Maximum Likelihood Estimation (MLE) method.  The result showed that the mean economic efficiency of the organic farmers (0,53) is higher compared conventional farmers (0.43). Cost saving of seed and high production in organic farming as a source of gain in economic efficiency. Knowledge on the factors influencing  farm efficiency is crucial for policy makers to improving efficiency levels.


Author(s):  
Barbora Hřebíková ◽  
Lukáš Čechura

Although weather is a significant determinant of agricultural production, it is not a common practice when analysing production to control for its impact. The problem is methodological, since it is difficult to find a proper proxy variable for weather in these models. The aim of this study is to investigate these issues. First, several possibilities for describing weather and its inclusion into stochastic frontier models are defined and discussed. Then, the explicit impact of weather on the technical efficiency of Czech farmers in different regions of the Czech Republic for the period 2004–2009 is analyzed and discussed. We use a proxy variable in the form of Iowa indices in the production analysis, in order to capture the impact of weather on technical efficiency. A stochastic frontier production function model in the form of the BC Model is defined, and weather enters the model as a variable explaining technical inefficiency. The paper arose within the framework of solution of the 7thFP EU project COMPETE no 312029.


2021 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Anthony Orji ◽  
Jonathan E. Ogbuabor ◽  
Gabriel Chiangi Aza ◽  
Onyinye I. Anthony-Orji

Abstract This study investigates the impact of foreign direct investment on the level of firm technical efficiency in West Africa. Firms from Nigeria, Ghana, Sierra Leone and the Gambia were sampled due to the fact that they used to belong to the British Empire. The data, sourced from the World Bank enterprise survey, covers the period from 2006 to 2018, with the sampled countries having data for different years. A time varying stochastic frontier production function for panel was developed for this enquiry. The findings of the study show that foreign direct investment has a significant and positive impact on both technical efficiency and productivity of firms in West Africa. Controlling for other effects, international trade and firm size both have positive and significant effects on firm level technical efficiency. Therefore, policies should be aimed at encouraging more inflows and maintenance of the stock of foreign direct investment to avert divestments. This includes, but is not limited to, ensuring sociopolitical stability and introducing policies that would remove bureaucratic bottlenecks from the path of direct investment inflow and simplify the process of doing business in these countries.


2020 ◽  
Vol 12 (19) ◽  
pp. 8194
Author(s):  
Ruopin Qu ◽  
Yongchang Wu ◽  
Jing Chen ◽  
Glyn D. Jones ◽  
Wenjing Li ◽  
...  

The impact of agricultural cooperatives on apple farmers’ technical efficiency (TE) in China was examined. The cooperatives were divided into two groups: a collective marketing group for farmers and an equivalent non-marketing group that did not provide a marketing service, although other functions remained the same. Using the propensity score matching (PSM) procedure and stochastic production frontier (SPF) modelling, cooperatives’ key functions that potentially increase farmers’ TE can be identified. The results indicate that membership of either group is positively related to yield. However, cooperatives that were not engaged in marketing achieved higher TE than non-members. This suggests that policy makers should encourage cooperatives to focus on activities that do not include direct marketing to increase TE in apple production in China.


2018 ◽  
Vol 2018 ◽  
pp. 1-10 ◽  
Author(s):  
John Kanburi Bidzakin ◽  
Simon C. Fialor ◽  
Dadson Awunyo-Vitor ◽  
Iddrisu Yahaya

Irrigation production is a means by which agricultural production can be increased to meet the growing food demands in the world. This study evaluated the effect of irrigation ecology on farm household technical, allocative, and economic efficiency of smallholder rice farmers. Cross-sectional data was obtained from 350 rice farmers across rain fed and irrigation ecologies. Stochastic frontier analyses are used to estimate the production efficiency and endogenous treatment effect regression model is used to estimate the impact of irrigation ecology on rice production efficiency. The impact of irrigation ecology on technical efficiency is about 0.05, which implies farmers producing under irrigation ecology are more technically efficient in their rice production than those in rain fed production. The impact of irrigation ecology on allocative efficiency is about 0.33, which shows that farmers participating in irrigation farming are more allocatively efficient in their rice production than those in rain fed production. The impact on economic efficiency is about 0.23, meaning that farmers participating in irrigation farming are more economically efficient in their rice production than those in rain fed production. Irrigation ecology has positive impact on production efficiency; hence farmers should be encouraged to produce more under irrigation for increased yield and profit.


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