Efficiency analysis of sugarcane production systems in Thailand using data envelopment analysis

Abstract

Abstract This study aims to analyze the performances of different sugarcane production systems of Thailand from the perspective of efficiency. Data Envelopment Analysis has been used to evaluate and compare the relative efficiencies of six sugarcane producing systems including lower northern, upper north eastern, lower north eastern, upper central, lower central and western regions in relation to the entire sugarcane production systems of the country. Moreover, this study analyses the efficiency of each production system separately to evaluate the variability in the performances within the region. The efficiency analysis indicates a huge potential for the improvement in the efficiency through reduction in the current pattern of farm inputs in the lower north, upper central and upper northeastern regions. The efficiency of all the other regions can also be improved by providing good management practices of sugarcane farms. The finding of this research indicates that there exist significant variabilities in efficiencies of different production regions which are mainly inversely influenced by the size of the farms and level of mechanization. This research also discusses some targeted policy interventions that can improve the regional performances of sugarcane production systems.