Technical Efficiency of Pepper Farms in Sarawak

Abdul Hamid Jaafar and Mansor Jusoh
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Abdul Hamid Jaafar: Department of Agricultural Economics and Resource Faculty of Economics Universiti Kebangsaan Malaysia 43600 Bangi, Selangor D.E.
Mansor Jusoh: Department of Statistical Economics Faculty of Economics Universiti Kebangsaan Malaysia 43600 Bangi, Selangor D.E.

Jurnal Ekonomi Malaysia, 1997, vol. 31, 71-85

Abstract: Pepper is an important crop in Sarawak. This is especially so for the interior population as the crop can be stored for a long period of time without any treatment. Pepper in Sarawak are cultivated by bumiputeras and non-bumiputeras. This paper has two objectives, the first is to determine the overall technical efficiency of the pepper cultivation industry in Sarawak and the second is to ascertain whether there is any difference in the technical efficiency of the bumiputera and non-bumiputera pepper farms. The method of technical efficiency measurement is calculated based on the Kopp technical efficiency measure while for the comparison of technical efficiency between ethnic groups, the method as suggested in Mansor Jusoh and Hamid Jaafar (1989) was utilized. The results indicate that the overall technical efficiency of pepper cultivation industry in Sarawak is very low. This implies that a greater output can be achieved with the present level of input usage. Further the results also indicate that the bumiputera farms are relatively less technically efficient than the non- bumiputera farms. Thus, appropriate measures must be taken so that scarce factors of production are used optimally.

Date: 1997
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