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Contract Farmer and Poultry Farm Efficiency in Bangladesh: A Data Envelopment Analysis

Author

Listed:
  • Ismat Ara Begum

    (Agricultural Economics - UGENT - Universiteit Gent = Ghent University = Université de Gand, Agricultural Economics - Bangladesh Agricultural University)

  • Mohammad Jahangir Alam

    (Agribusiness and Marketing - Bangladesh Agricultural University, Agricultural Economics - UGENT - Universiteit Gent = Ghent University = Université de Gand)

  • Jeroen Buysse

    (Agricultural Economics - UGENT - Universiteit Gent = Ghent University = Université de Gand)

  • Aymen Frija

    (Agricultural Economics - UGENT - Universiteit Gent = Ghent University = Université de Gand)

  • Guido Van Huylenbroeck

    (Agricultural Economics - UGENT - Universiteit Gent = Ghent University = Université de Gand)

Abstract

The objective of this paper 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 estimate elasticities to provide the information on the magnitude of the variables influence on technical, allocative and economic efficiency. The results show that contracting system is positively and significantly related to farm's technical, allocative and economic efficiency. 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 & 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.

Suggested Citation

  • Ismat Ara Begum & Mohammad Jahangir Alam & Jeroen Buysse & Aymen Frija & Guido Van Huylenbroeck, 2011. "Contract Farmer and Poultry Farm Efficiency in Bangladesh: A Data Envelopment Analysis," Post-Print hal-00712373, HAL.
    • Handle: RePEc:hal:journl:hal-00712373
    DOI: 10.1080/00036846.2011.581216
    Note: View the original document on HAL open archive server: https://hal.science/hal-00712373v1
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    4. Henningsen, Arne & Mpeta, Daniel F. & Adem, Anwar S. & Kuzilwa, Joseph A. & Czekaj, Tomasz G., 2015. "The Effects of Contract Farming on Efficiency and Productivity of Small-Scare Sunflower Farmers in Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 212478, International Association of Agricultural Economists.
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    6. Mohammad Rondhi & Ebban Bagus Kuntadi & Anik Suwandari & Rizky Yanuarti & Ahmad Fatikhul Khasan & Yasuhiro Mori & Takumi Kondo, 2023. "Impact of Contract Farming on the Technical Efficiency of Broiler Farmers in Indonesia," Economia agro-alimentare, FrancoAngeli Editore, vol. 25(1), pages 35-55.
    7. Camanho, Ana Santos & Silva, Maria Conceicao & Piran, Fabio Sartori & Lacerda, Daniel Pacheco, 2024. "A literature review of economic efficiency assessments using Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 315(1), pages 1-18.
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    9. R Islam & N Sultana & U Ayman & A Akter & M Afrose & Z Haque, 2021. "Morphological and morphometric adaptations of testes in broilers induced by glucocorticoid," Veterinární medicína, Czech Academy of Agricultural Sciences, vol. 66(12), pages 520-529.
    10. Anirban Nandy & Piyush Kumar Singh & Alok Kumar Singh, 2021. "Systematic Review and Meta- regression Analysis of Technical Efficiency of Agricultural Production Systems," Global Business Review, International Management Institute, vol. 22(2), pages 396-421, April.
    11. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    12. Anh Tru Nguyen & Janet Dzator & Andrew Nadolny, 2018. "Contract farming, agriculture productivity and poverty reduction: evidence from tea estates in Viet Nam," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 25(1), pages 109-145, June.
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    14. Baldos, Uris Lantz C. & Hertel, Thomas W., 2012. "Economics of global yield gaps: A spatial analysis," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124978, Agricultural and Applied Economics Association.

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