Influence Of Management Characteristics On Technical Efficiency Of Rice Farming In The Muda Agricultural Development Authority, Kedah, Malaysia

Rice is a strategically important crop due to it being a staple food commodity. The rice industry is heavily regulated and completely protected from direct foreign competition. However, technical efficiency remains low. Numerous farm studies have shown the widespread existence of inefficiencies among rice producers. Despite the general adoption of the green revolution technology, enormous differences in farm technical efficiency still exists intra and inter farms, within regions and nations. Even though farms face similar environmental conditions and apply the same production techniques, yield levels still differ between them. Many believe that management skills must be the X factors that contribute to the differences in technical efficiency between farms. This study attempts to examine the farm technical efficiency levels and the effects of management variables on efficiency. The purpose of the study was to analyze the roles of management proxied as a soft technology variable in determining the technical efficiency of paddy farms in MADA, Kedah. Three hundred and seventy five farm records of MADA paddy farmers in Season 1, 2002 were analyzed for the levels and determinants of technical inefficiency. Data collected included a) production variables: paddy output, land, fertilizer, chemicals, labour, and b) management demographic variables: planning, organizing, directing, controlling, age, education and family size. The data were comparatively analysed via the parametric (Stochastic Frontier Analysis) and non parametric (Data Envelopment Analysis) framework according to regions and farm size. The estimated efficiency indexes and the determinants of technical inefficiency yielded by each method were compared and analysed. The empirical results were subsequently examined to ascertain the extent to which they served the needs of policymakers. Determinants of inefficiency which include planning, organizing, directing, coordinating, control, age, education and experience were analyzed using, i) Battesse and Coelli (1995) model, and ii) Tobit model. Results indicated that farmers have an average farm size of 2.04 hectares. Most farmers were generally old with households’ size becoming smaller implying less family labour hours available for farm work. Most farmers have low education levels but are rather well experienced in paddy planting with the knowledge generally being passed down from elders and experienced on the job rather than formal training.Stochastic Frontier Analysis showed a wide variation in the estimated technical efficiencies, ranging from 37 to 98 percent, indicating opportunities for improvement in the technical efficiency of farms. Parameter estimates show systematic technical inefficiency effects do exist. Management variables that exert positive effects on efficiency are organizing, staffing and controlling. Motivational variables that promote efficiency include maintaining way of life, maintaining environment and increasing farm size. Demographic variables that are positively related to efficiency are experience, household size and education levels. Data Envelopment Analysis indicated that efficiency levels, ranging from 26 to 100 percent, vary across farms and within each production regions. Most farms are technically efficient with 60 percent of the sample above the mean efficiency score. Efficient farms that are well managed have proper planning, organizing and control schedules. Most of these farms are managed by rather old, very experienced but lowly educated farmers. Farm objective of maintaining environment was the main characteristics of efficient farms. Personal aspects which include years of experience and age exert positive effects on efficiency. The comparative analysis for the mean technical efficiency for the sample were estimated to be 88 percent for SFA, 72.5 percent for DEA Constant Returns to Scale and 83.1 percent for DEA Variable Returns to Scale. This implies that more work can still be done to increase the efficiency levels. The technical inefficiency effects were found to be significant in explaining the levels of and variation in farm earnings. Organizing, staffing, controlling, environment conscious, maintaining way of life, maintaining farm size, age and experience exert positive factors on farm efficiency. In conclusion, policymakers should not be indifferent to the choice of the frontier models used to score efficiency relationships. They may be well advised to wait until additional research clarifies reasons why DEA and SFA models yield divergent results before they introduce these methods into the policy process. Thus, farm policies should focus more on improving the skills and techniques of farm operations. Correct application and timeliness of farm operation will promote the optimal usage of inputs. Training and extension services can also help farms acquire new technology so that they can be at the frontier of paddy production

Analysis of Marketing Channel and Market Structure of Dried Fish in Maiduguri Metropolis of Borno State, Nigeria

The study examined channel and market structure of dried fish in Maiduguri Metropolis of Borno State, Nigeria. Data were obtained using structured questionnaire. Three (3) major dried fish markets were purposely selected out of the seven (7) markets in the study area to reflect areas where dried fish sellers are predominantly found. A total of 100 respondents from the three (3) markets were randomly selected for the study. Descriptive statistics, Ginni coefficient, least square simple regression and budgetary techniques were used as analytical tools. The result reveals that marketing channel is divided into wholesalers and retailers of fresh and processed fish (dried fish). The finding also indicates that the values of Ginni coefficient were (0.5478) and (0.5252) for wholesalers and retailers, respectively. And the dried fish market had non competitive behaviour with monopolistic nature. The finding also reveals that (82%) of the marketers engaged in marketing Grade C dried fish products. The result of economies of scale reveals that the coefficient of wholesalers was (-0.005) while that of retailers was (-0.741) and are all negative but, statistically significant at 1% and 5%, respectively. It was recommended that local dried fish marketers should be organized into cooperative groups and government should provide adequate infrastructural facilities such as good road net work and market facilities. Keywords: Marketing channel, Market Structure, Dried fish, Borno State, Nigeria

OFF-FARM LABOUR DECISIONS BY FARMERS IN NORTHWEST SELANGOR INTEGRATED AGRICULTURAL DEVELOPMENT PROJECT (IADP) IN MALAYSIA

Farmers are constantly faced with employment decisions off the farm. To work off farm would definitely increase their incomes but this will affect their farming jobs. This study analyses the farm labour decision making process of farmers in an IADP in Selangor, Malaysia. Results indicate the consistency of labour allocation decisions as in other past studies. Farmers do response rationally to favourable economic stimuli off the farm with respect to the labour supply decision making process