Factors Affecting Cost Efficiency of Cambodian Rice Farming Households

Type Journal Article - Forum of International Development Studies
Title Factors Affecting Cost Efficiency of Cambodian Rice Farming Households
Author(s)
Volume 45
Issue 2
Publication (Day/Month/Year) 2014
Page numbers 18-38
URL http://ir.nul.nagoya-u.ac.jp/jspui/bitstream/2237/20952/1/02.pdf
Abstract
Using the Cambodia Socio-Economic Survey (CSES) 2009, this study tested the cost efficiency of
Cambodian rice farming households. The wet and dry season cases were examined separately; the
results showed the evidence of cost inefficiency1
among the wet season farming households, while
among the dry season farming households, there was no significant evidence. When taking into account
differences in agro-climatic zones, only wet season rice farming households in Tonle Sap and Plateau/
Mountain zones were found to have cultivated inefficiently. There was no evidence of inefficiency among
dry season rice farming households in all agro-climatic zones. The mean cost efficiency score of 1.2 and
1.3 were obtained respectively for Tonle Sap and Plateau/Mountain zones. If the efficiency score equals
one, the farming households are cost efficient and if it is larger than one, the farming households are cost
inefficient. The mean score of 1.2 and 1.3 indicates that, on average, wet season rice farming households
in these two regions were operating on about 20% and 30% over the minimum cost frontier, i.e 20%
or 30% of their resources respectively were wasted. The results of the factors affecting cost efficiency
suggested that there should be an appropriate number of farmers cultivating in a plot of land. If too many
farmers cultivate in a small plot of land, cost efficiency will drop. Cost efficiency can also be improved if
farming households are able to increase their cultivated area given the same number of farmer member
of household, or reduce the number of household members who cultivate rice.

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