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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Benefits and Efficiency of Cabbage Production of Lao Farmers Under Thai-Laos Contract Farming
Author(s)
Khunthongjan Supawadee
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DOI:10.17265/1537-1514/2013.07.002
Affiliation(s)
Khunthongjan Supawadee, Ph.D., Faculty of Business Administration and Management, Ubon Ratchathani Rajabhat University.
ABSTRACT
The purpose of this study was twofold: (1) studying the capital and the income that the Lao agriculturists had after planting cabbage; and (2) studying the cabbage production efficiency of Lao agriculturists. One hundred and eighteen Lao agriculturists participated in the contract farming project, 10 months were spent on the study. There are two research questions: (1) How much was the per unit cost and investment return on cabbage in the contract farming project? and (2) What is the effectiveness of the production of cabbage in this contract farming? The research tools employed in this work were questionnaires and interview schedules and descriptive statistics were employed for frequency, percentage, and calculation of the stochastic production frontier in order to calculate the degree of production efficiency. The findings were: (1) There were two highly flexible forms of contract farming under the Thai-Laos contract farming agreement: one was the official written agreement that needed the signatures of both parties and the other was the unofficial oral agreement; (2) The annual revenues for cabbage production were 2,859.30 USD per hectare, the capital costs were 2,139.07 USD per hectare, and the net profit was 720.23 USD per hectare; and (3) The production efficiency of cabbage was concentrated at the lowest level between 0.00-0.50 (86.44%), which was risky for Lao agriculturists. Therefore, urgent assistance with production techniques is needed from the government sectors.
KEYWORDS
Thai-Laos contract farming, efficiency of production, cabbage in Pak Chong, Lao farmer
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References
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