EFFICIENCY ANALYSIS OF TRADITIONAL TEA FARMS IN IRAN
DOI:
https://doi.org/10.5937/ekoPolj1902423GKeywords:
Production efficiency, data envelopment analysis, tea production, Guilan ProvinceAbstract
This study aimed at analyzing technical, allocative and economic efficiency of tea farms in Fouman County of Guilan Province, Northern Iran. Data were collected through questionnaire and face-to-face interviews with 200 tea farmers in 2017. The data then were analyzed using descriptive statistics, data envelopment analysis (DEA), as well as correlation analysis. The average technical, allocative and economic efficiency, assuming constant return to scale in input-oriented model, were found to be 86, 71 and 61 percent respectively. These figures for variable return to scale were 87, 74 and 65 percent respectively. These results indicate that over 60 percent of the surveyed farms enjoyed scale efficiency. Of those socio characteristics affecting tea farmers efficiency: age, educational level and family size had positive and significant correlation with technical efficiency. The findings suggest that, the elderly and better educated farmers combined their previous knowledge of farming adopting proper farming practices may achieve production efficiency.
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References
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2. Aigner, D., Lovell, C.A.K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production functions models. Journal of Econometrics. 6(1): 21-37.
3. Amini, S.H. Yazdani, S., Chizari, A.H. & Borjujeni, P.A. (2012). Measuring the efficiency of industrial dairy cattle breeding farms, using data envelopment analysis: A case in Southern Tehran Province, Iran. Agricultural Economic Research, 4(1): 105-122. (Persian).
4. Ghasemi, A. (2008). Effect of Structural Reforms in the Tea Industry, Journal of Commercial Reviews, 7(4): 25-39.
5. Van Ho, B., Nanseki, T. & Chomei, Y. (2018). Profit efficiency of tea farmers: case study of safe and conventional farmers in Northern Vietnam, Environmental development and sustainability. 4(4): 1-19.
6. Banker, R.D., Charnes, A., & Cooper, W.W., (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis, Management Sciences, 30(3): 1078-1092.
7. Basnyake, B. M. J. K. & Gunaratne. L. H. P.,( 2002). Estimation of technical efficiency and its determinants in the tea small holding sector in the mid country wet zone of Sri Lanka, Sri Lankan Journal of Agricultural Economics, 4(1): 137-150.
8. Baten, A., Kamil, A.A., & Haque, M.A. (2010). Productive efficiency of tea industry: A stochastic frontier approach, African Journal of Biotechnology, 25(2): 3808-3816.
9. Charnes, A., Copper, W.W. & Rhodes, E, (1978). Measuring the efficiency of decision making units, European Journal of Operation of Research, 2(3): 429-444.
10. Coelli, T.J., Rao, D.S.P, ODonnell, C.J., & Battese, G.E., (2005). An introduction to efficiency and productivity analysis, Springer Science and Business Press.
11. Coelli T.J. & Battese, G.E. (1996). Identification of factors which influence the technical inefficiency of Indian farmers, Australian Journal of Agricultural Economics, 40(2): 103-108.
12. Cooper, W.W., Seiford, L.M. & Zhu, J. (2004). Data envelopment analysis: models and interpretations." In: Cooper, W.W., Seiford, L.M. and Zhu, J. (eds.) hand book on data envelopment, analysis, Kluwer Academic Publisher, Boston, 2004: 1-34.
13. Farrel, M.J, (1957). Measurement of productive efficiency. Journal of the Royal Statistical Society. 1(1): 233-240.
14. Moezi, Gh. (2009). Tea through Time, Abzian Publishing Press. (In Persian)
15. Hong, N. B. & Yabe, M., (2013). Resource use efficiency of tea production in Vietnam: Using Translog SFA model, Journal of Agricultural Sciences; 7(9): 160- 176.
16. Hong, N.B. & Yabe, M. (2015). Profit efficiency of tea production in the Northern Mountainous Region of Vietnam, Journal of the International Society for Southeast Asian Agricultural Sciences, 21(1): 1-17.
17. Iran Statistical Center: Survey of Agriculture, (2016).
18. Iran Tea Organization Data Base, (2017).
19. Iran Tea Organization, (2017). Report of tea production.
20. Iran Tea Report, Iran Tea Company Publication, (1958).
21. Iran Tea Report, Iran Tea Company Publication, (1972).
22. Kavand, H. Kalbali, A. & Sebohai, M. (2014). Application of data envelopment analysis, considering efficiency of saffron production, Journal of Saffron Technology and Cultivation, 2(1): 17-29. (In Persian)
23. Kazemi, M. & Nikkha, R. (2009). Application of data envelopment analysis in measuring and analyzing relative efficiency of wheat cultivation: Case of Khorasan-e Razavi, Iran. Agricultural Economics and Development, 23(2): 87-94. (In Persian)
24. Mehrabi, H. & Pakravan, M.R. (2009). Estimating efficiencies and return to scale of sunflower producers in Khoy Township, Iran. Agricultural Economic and Development, 23(2): 95-102. (In Persian).
25. Meeusem, W., & van den Broeck, J. (1977). Efficiency estimation from CobbDouglas production functions with composed error. International Economic Review, 5(3): 435-444.
26. Nguyen, H. P., Wattanachai, P., Kasem, S., Nguyen. T. Q., Dang, V. T., Nguyen, X. C., & Luong, T. N. V. (2015). Comparison among chemical, GAP and organic method for tea cultivation in Vietnam, Journal of Agricultural Technology, 11(8): 1713-1730.
27. Njeru, J. (2010). Factors influencing Technical Efficiencies among Selected Wheat Farmers in Uasian Gishu District, Kenya. AERC Research Paper 206, African Economic Research Consortium, Nairobi, Kenya.
28. Saigenji, Y. & Zeller, M. (2000). Effect of contract farming on tea production in the Northern Mountainous region of Vietnam, Economic Conformance, Beijing, China.
29. World Food Organization, (2017). Database statistics.
30. Zarra-Nezhad, M., Bavarsad, B., & Noroozi, M. N. (2012). Study of technical efficiency of rice farmers in Iran: a case of Kohghiluyeh and Boyer-Ahmad province, Quarterly Journal of Quantitative Economics, 8(4): 43-125.
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Published
2019-06-25
How to Cite
Ghaderi, Z., Menhaj, M. H., Kavoosi-Kalashami, M., & Sanjari, S. M. (2019). EFFICIENCY ANALYSIS OF TRADITIONAL TEA FARMS IN IRAN. Ekonomika Poljoprivrede, 66(2), 423–436. https://doi.org/10.5937/ekoPolj1902423G
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