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Wan Roshidah Fadzim
UNIVERSITI UTARA MALAYSIA
Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

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Efficiency of Smallholder Cocoa Farmers in Malaysia: A DEA Approach Wan Roshidah Fadzim; Mukhriz Izraf Azman Aziz; Ahmad Zafarullah Abdul Jalil
International Journal of Supply Chain Management Vol 6, No 1 (2017): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (13.161 KB)

Abstract

Cocoa production in Malaysia faced several problems and challenges that lead to low productivity. The low productivity is evidenced from the continuous drop in cocoa productionsince 2001 despite efforts from governing bodies to boost output.This studyinvestigates this issue by looking into theproduction efficiencyamong small holder cocoa farmers in Malaysia.The technical efficiencies of cocoa farmers in Malaysia are estimated using data envelopment analysis. The study relies upon primary data gathered during the 2013 production season. Data are collected from a set of structured questionnaire administered on 323 smallholder cocoa farmers throughout Malaysia. Results ofthe analysis reveal that the mean efficiency score is 0.576. This indicates that many cocoa farmers in Malaysia are technically inefficient and this resulted into the low productivity in the Malaysian raw cocoa beans industry in recent years. This inefficiency is largely due to poor management and usage of inputs in the cocoa production.
Determinants of Technical Efficiency of Cocoa Farmers in Malaysia Wan Roshidah Fadzim; Mukhriz Izraf Azman Aziz; Ahmad Zafarullah Abdul Jalil
International Journal of Supply Chain Management Vol 6, No 1 (2017): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (13.161 KB)

Abstract

The study of the determinants of technical efficiency among smallholder cocoa farmers has been well studied and still attracts more studies in the agricultural literature. Among the factors attract attention are the demographic characteristics that affect farmers decision-making process and the ability of farmers to execute the decision effectively. Cocoa production in Malaysia faces a multiplicity of problems which results into low productivity, thus leading a continuous fall in percentage share of cocoa output since 2001. Currently, no study has focussed on the investigation of this issue from the supply perspective. This study will deal with the determinants of technical efficiency among cocoa farmers in Malaysia during the year 2013 production season using the Tobit estimator. Questionnaires were administered to 323 smallholder cocoa farmers throughout Malaysia and data were collected. The results of the analysis showed that ratio, number of clones, record keeping, status of farmers (either part-time or full-time basis), knowledge, farming course and plant location affects efficiency. This finding suggests that policies that would directly affect these identified variables be pursued.
Co-Authors Ahmad Zafarullah Abdul Jalil Ahmad Zafarullah Abdul Jalil Mukhriz Izraf Azman Aziz