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Assessment of Technical Efficiency of Potato Producers in Some Selected Areas of Bangladesh

M. A. HOSSAIN
On Farm Research Division, Bangladesh Agricultural Research Institute, Gazipur-1701, Bangladesh

M. K. HASAN
On Farm Research Division, Bangladesh Agricultural Research Institute, Gazipur-1701, Bangladesh

Q. NAHER
On Farm Research Division, Bangladesh Agricultural Research Institute, Gazipur-1701, Bangladesh

Abstract/ Executive Summary:

A study was carried out in three potato growing areas viz. Munshiganj, Bogra and Jessore covering 75 potato growers to measure technical efficiency and economic performance of potato production. Farmers obtained average tuber yield of 24.90 t/ha which was higher than the average yield of Bangladesh (14.90 t/ha) but close to potential yield (25-30 t/ha) of diamant and cardinal varieties. The estimated results showed that gross margin and BCR for potato cultivation were Tk. 174319/ha and 2.40, respectively. The average level of technical efficiency among the sample farmers was 75%. This implies that given the existing technology and level of inputs the output could be increased by 25%. Training on the potato production, extension linkage and quality seed played a significant role in the technical efficiency of the potato production.

Keywords: Profitability, Technical efficiency, Potato producers

Location: Munshiganj, Bogra and Jessore

Start Date: 00-04-2007

End Date: 00-05-2007

Program Area: Socio-economic and Policy

Commodity: Potato

Objectives:

The present study was designed to measure technical efficiency of potato producers.

Methodology:

Based on area and production, the present study was conducted in the potato growing districts of Bangladesh to collect primary data. Among the three districts, high, moderate and low concentrated area was selected for each potato growing areas. Munshiganj was chosen as high concentrated area, Bogra as moderate concentrated area and Jessore as low concentrated area for potato production. Two villages were selected purposively for collecting farm level data from each district. A total of 75 farmers (25 farmers from each district) were selected purposively. Data were collected during April-May 2007. Pre-testing was done before finalizing the interview schedule. Secondary data on area and production related to potato were also used to supplement the information that was collected through field survey.The Cobb-Douglas production function is used for functional analysis of the data. It is the most widely used model for fitting agricultural production data, because of its mathematical properties, ease of interpretation and computational simplicity (Heady and Dillon, 1969). It is a homogeneous function that provides a scale factor enabling one to measure the return to scale and to interpret the elasticity coefficients with relative ease. It is also relatively easy to estimate because in logarithmic form it is linear and parsimonious (Beattie and Taylor, 1985). Thus, Cobb-Douglas specification provides an adequate representation of the agricultural production technology. The empirical Cobb-Douglas frontier production function model with double log form was used in analysis. The estimates for all parameters of the stochastic frontier and inefficiency effect model was estimated in a single stage by using the Maximum Likelihood (ML) method with the help of computer software package FRONTIER 4.1 (Coelli, 1996).

Source of Information: Agric Rural Dev 6(1&2), 113-118, June 2008 ISSN 1810-1860

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The estimated results showed that gross margin and BCR for potato cultivation were Tk. 174319/ha and 2.40, respectively. The average level of technical efficiency among the sample farmers was 75%. This implies that given the existing technology and level of inputs the output could be increased by 25%. Training on the potato production, extension linkage and quality seed played a significant role in the technical efficiency of the potato production.

Knowledge Management: Journal