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

Ismat Ara Begum (), Mohammad Jahangir Alam (), Jeroen Buysse (), Aymen Frija and Guido Van Huylenbroeck ()
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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
Guido Van Huylenbroeck: Agricultural Economics - UGENT - Universiteit Gent = Ghent University = Université de Gand

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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.

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-06-27
Note: View the original document on HAL open archive server: https://hal.science/hal-00712373v1
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Published in Applied Economics, 2011, ⟨10.1080/00036846.2011.581216⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00712373

DOI: 10.1080/00036846.2011.581216

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