Research Article Open Access

Determinants of Technical Efficiency of Sugarcane Production among Small Holder Farmers in Lao PDR

Poungchompu Supaporn1
  • 1 KhonKaen University, Thailand

Abstract

This study was to examine technical efficiency in sugarcane production in Savannakhet, Lao PDR. A stochastic frontier production function was applied with the data collected from 110 sample farmers in 2012. The results reveal that cultivated area (p<0.01), hired labor (p<0.10) and capital (p<0.10) are the major significantly positive factors in the output of sugarcane. Mean of technical efficiency was found to be 0.7431. In order to increase the efficiency of sugarcane farms improvements in farmers’ education and extension service are the two most important variables which can be used by policy makers.

American Journal of Applied Sciences
Volume 12 No. 9, 2015, 644-649

DOI: https://doi.org/10.3844/ajassp.2015.644.649

Submitted On: 27 August 2015 Published On: 3 October 2015

How to Cite: Supaporn, P. (2015). Determinants of Technical Efficiency of Sugarcane Production among Small Holder Farmers in Lao PDR. American Journal of Applied Sciences, 12(9), 644-649. https://doi.org/10.3844/ajassp.2015.644.649

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Keywords

  • Contract Farming
  • Sugarcane
  • Production
  • Technical Efficiency
  • Socio-Economics
  • Lao PDR