An Application of the Three-Stage Data Envelopment Analysis and Malmquist Productivity Index in Evaluating Technical Efficiency of Oil Palm Production in Thailand

• Main Authors: Surakiat Parichatnon, 蘇拉凱
• Other Authors: Ke-Chung Peng
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/8rv46f

博士 === 國立屏東科技大學 === 熱帶農業暨國際合作系 === 105 === Oil palm is one of the most crucial crops in tropical regions worldwide, particularly in Southeast Asia. Thailand is the third largest oil palm producer in the world. In addition, Thailand also has a strong of oil palm production that represents a significant portion of the Thai economy and intensive labor force. The most of oil palm plantation area and oil palm extraction plants are located in Southern region of Thailand; however, the plantation area in this area has reached its limit. The Thai government has released several strong policies to improve oil palm production throughout the country. These policies have been implemented throughout the country, particularly at a regional level. Therefore, technology production of oil palm is variously different across the four regions of Thailand. The purposes of this study are to measure the technical efficiency and trend of productivity’s change in Thai oil palm production. The study examined four regions; Northern, Northeastern, Central, and Southern Thailand, covering 77 provinces. Consequently, this study assessed the technical efficiency of oil palm productivity by using a sample of 77 DMUs (decision making units) in the four regions. Secondary data were collected from Thai oil palm plantations in four regions from 2007 to 2016 by using a three-stage data envelopment analysis model and Malmquist productivity index analysis. Firstly, this study used three-stage data envelopment analysis approach with input-oriented model for measuring efficiency of oil palm production in Thailand. Data envelopment analysis is a measure of performance and output and input variables of each DMU are the basic components of efficiency. Thus, the selection variables are very important in determining the measurement of efficiency. This study considers the output variables that is oil yield and price of quantity and analyzed a total of five input variables, namely plantation area, fertilizer, pesticide, number of tractors and labor force. Furthermore, the analysis of two environmental factors includes temperature and rainfall volume. Finally, Malmquist productivity index was used to measure the changes in oil palm production efficiency and to estimate the oil palm productivity trend in over a ten-year period by using Malmquist productivity index approach. Malmquist Productivity Index can be decomposed into two components, i.e. technical change and efficiency change. Malmquist productivity index’s score with equal 1 represents the unchanged growth rate for productivity, greater than 1 shows the productivity growth, and less than 1 means the productivity decline. The findings indicate that the technical efficiency scores using the adjusted inputs in stage 3 of the DEA approach were less than the efficiency scores in stage 1 of the DEA approach. Moreover, the results also showed that Southern region had the best scores of technical efficiency throughout the region, followed by Central, Northeastern and Northern region, respectively. Malmquist index of Thai oil palm production showed an upward trend because of the increasing trends found in both the technical change and the efficiency change. Thus, the results showed that the productivity index has increased, which means that the country has improved in productivity for oil palm production in Thailand from 2007 to 2016. The findings from this study contribute to improving efficiency production for sustainable development. Therefore, this study can provide important information to the farmers, Thai government, the oil palm research institutes and the development partners to determine strategies that are useful and practical in raising efficiency performance in each region and to help increase the trend of oil palm productivity index in some areas of Thailand.