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Estimating the potato farming efficiency: A comparative study between stochastic frontier analysis and data
Shamima Sultana1, Md Moyazzem Hossain2, Md Nurul Haque3
1Department of Economics, Jagannath University, Dhaka, Bangladesh.
Plos One
|April 13, 2023
Summary
Potato farming in Bangladesh shows significant inefficiencies, indicating potential for increased production through improved resource use and technology adoption. This study evaluated farm-level efficiency to support national food security goals.
Area of Science:
- Agricultural Economics
- Production Efficiency
- Sustainable Agriculture
Background:
- Bangladesh aims to boost potato consumption to reduce rice dependency and increase foreign exchange earnings.
- Efficient resource and technology utilization is crucial for meeting potato demand and achieving Sustainable Development Goals.
Purpose of the Study:
- To evaluate the farm-level efficiency of potato farming in Bangladesh.
- To identify key factors contributing to inefficiencies in potato production.
Main Methods:
- Employed Cobb-Douglas Stochastic Frontier Analysis (SFA) and input-oriented Data Envelopment Analysis (DEA).
- Collected primary data from 300 potato farmers across four districts in Bangladesh.
Main Results:
- Stochastic Frontier Analysis (SFA) yielded higher efficiency scores than Data Envelopment Analysis (DEA).
- Significant technical, allocative, and economic inefficiencies were identified in potato farming.
- Infrastructure and socio-economic factors were found to influence production variability.
Conclusions:
- Recommends utilizing SFA for efficiency assessments in the agricultural sector.
- Highlights the need for government focus on improving allocative and economic efficiencies in potato production.
- Emphasizes appropriate technology selection and efficient resource management for optimal scale of operation.
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