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Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis

(2012) APPLIED ECONOMICS. 44(28). p.3737-3747
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Abstract
The objective of this article is to determine the efficiency of the poultry farm in Bangladesh and to assess the influence of contract farming system, using a data envelopment analysis. Seventy-five commercial poultry farms (25 and 50 independent and contract farms, respectively) were randomly selected. The results reveal that efficiency scores vary across sample farms. To explain some of these variations, the efficiency scores were regressed on some human capital variables and farming system using a Tobit model. The study also estimates elasticities to provide the information on the magnitude of the influence of variables on Technical Efficiency (TE), Allocative Efficiency (AE) and Economic Efficiency (EE). The results show that the contracting system is positively and significantly related to the farm’s TE, AE and EE. This is expected because under contractual agreement, in order to obtain sufficient supplies of the right quality of poultry meat at the right time, the company provides technical know how assistance through company’s recruited supervisor, production inputs and services, and production credit along with intensive supervision, which in turn improves farm efficiency. Thus, by receiving technical know how contract farmers have gained more knowledge on their resource and practices, which enables them to use resources more efficiently. Empirical results can provide crucial information to policy makers that improve poultry farm efficiency.
Keywords
poultry contract farming, Bangladesh, Tobit analysis, DEA, SPAIN, TECHNICAL EFFICIENCY, efficiency, STOCHASTIC FRONTIER

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MLA
Begum, Ismat Ara, Mohammad Jahangir Alam, Jeroen Buysse, et al. “Contract Farmer and Poultry Farm Efficiency in Bangladesh: a Data Envelopment Analysis.” APPLIED ECONOMICS 44.28 (2012): 3737–3747. Print.
APA
Begum, I. A., Alam, M. J., Buysse, J., Frija, A., & Van Huylenbroeck, G. (2012). Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis. APPLIED ECONOMICS, 44(28), 3737–3747.
Chicago author-date
Begum, Ismat Ara, Mohammad Jahangir Alam, Jeroen Buysse, Aymen Frija, and Guido Van Huylenbroeck. 2012. “Contract Farmer and Poultry Farm Efficiency in Bangladesh: a Data Envelopment Analysis.” Applied Economics 44 (28): 3737–3747.
Chicago author-date (all authors)
Begum, Ismat Ara, Mohammad Jahangir Alam, Jeroen Buysse, Aymen Frija, and Guido Van Huylenbroeck. 2012. “Contract Farmer and Poultry Farm Efficiency in Bangladesh: a Data Envelopment Analysis.” Applied Economics 44 (28): 3737–3747.
Vancouver
1.
Begum IA, Alam MJ, Buysse J, Frija A, Van Huylenbroeck G. Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis. APPLIED ECONOMICS. 2012;44(28):3737–47.
IEEE
[1]
I. A. Begum, M. J. Alam, J. Buysse, A. Frija, and G. Van Huylenbroeck, “Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis,” APPLIED ECONOMICS, vol. 44, no. 28, pp. 3737–3747, 2012.
@article{1891867,
  abstract     = {{The objective of this article is to determine the efficiency of the poultry farm in Bangladesh and to assess the influence of contract farming system, using a data envelopment analysis. Seventy-five commercial poultry farms (25 and 50 independent and contract farms, respectively) were randomly selected. The results reveal that efficiency scores vary across sample farms. To explain some of these variations, the efficiency scores were regressed on some human capital variables and farming system using a Tobit model. The study also estimates elasticities to provide the information on the magnitude of the influence of variables on Technical Efficiency (TE), Allocative Efficiency (AE) and Economic Efficiency (EE). The results show that the contracting system is positively and significantly related to the farm’s TE, AE and EE. This is expected because under contractual agreement, in order to obtain sufficient supplies of the right quality of poultry meat at the right time, the company provides technical know how assistance through company’s recruited supervisor, production inputs and services, and production credit along with intensive supervision, which in turn improves farm efficiency. Thus, by receiving technical know how contract farmers have gained more knowledge on their resource and practices, which enables them to use resources more efficiently. Empirical results can provide crucial information to policy makers that improve poultry farm efficiency.}},
  author       = {{Begum, Ismat Ara and Alam, Mohammad Jahangir and Buysse, Jeroen and Frija, Aymen and Van Huylenbroeck, Guido}},
  issn         = {{0003-6846}},
  journal      = {{APPLIED ECONOMICS}},
  keywords     = {{poultry contract farming,Bangladesh,Tobit analysis,DEA,SPAIN,TECHNICAL EFFICIENCY,efficiency,STOCHASTIC FRONTIER}},
  language     = {{eng}},
  number       = {{28}},
  pages        = {{3737--3747}},
  title        = {{Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis}},
  url          = {{http://dx.doi.org/10.1080/00036846.2011.581216}},
  volume       = {{44}},
  year         = {{2012}},
}

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