Ismat Ara Begum

Technical, allocative and economic efficiency of commercial poultry farms in Bangladesh.

The growth rate of poultry meat production is not sufficient to satisfy the per capita meat requirement in Bangladesh. Therefore ways to improve the efficiency of the existing production technologies must be investigated if these demands are to be met. This review examines ways this could be achieved. The technical, allocative and economic efficiency of poultry meat production based on farm level survey data was estimated using the Data Envelopment Analysis (DEA) approach. The study used 100 commercial poultry farms in Bangladesh for the calendar year of 2007. The results demonstrated that there is substantial technical, allocative and economic inefficiency in poultry production in Bangladesh. Under the constant return to scale (CRS) specification, technical, allocative and economic efficiencies were 88, 70 and 72% respectively, whereas under the variable returns to scale (VRS) specification those efficiencies were 89, 73, 66% respectively. Thus, the results indicate that efficiencies varied substantially across the sample farms. In order to attempt to explain some of these variations, the efficiency scores were regressed based on farm specific variables such as the farmers age, education, experience, total landholdings, poultry farm size and level of training using a Tobit regression framework. The estimated DEA model identified that there is great potential for increasing poultry farm efficiency using the existing level of inputs and resources more efficiently. Specifically it showed that the level of education and training the farmer receives are two of the most important factors contributing to the variations in efficiency seen during this study. These research findings are valuable to policy makers and extension workers in order to guide policies towards increasing efficiency.

Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis

The objective of this article 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 estimates elasticities to provide the information on the magnitude of the influence of variables on Technical Efficiency (TE), Allocative Efficiency (AE) and Economic Efficiency (EE). The results show that the contracting system is positively and significantly related to the farms TE, AE and EE. 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 companys recruited supervisor, production inputs and 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.

The dynamic relationships between world and domestic prices of rice under the regime of agricultural trade liberalization in Bangladesh

The article examines the dynamic relationship between the world and the domestic market price of rice for Bangladesh given agricultural trade liberalization. A Johansen multivariate cointegration test was used, followed by an error correction model. Results show that there exists a long-run unidirectional equilibrium relationship, meaning that the domestic prices adjust to the world prices but not vice versa. Our results highlight the dependence of the Bangladeshi rice market on the world rice market and underline the need for adequate policies which specifically address the issue of food security when world prices are very high. The goal of such policies should be to dampen or reduce domestic price volatility induced by the world market.

The welfare impact of policy interventions in the foodgrain markets in Bangladesh

The paper attempts to estimate the welfare impact of different policy interventions in the foodgrain markets in Bangladesh using an economic surplus approach. Over the period of analysis, 1980–2003, the loss in consumer surplus exceeded the gain in producer surplus plus the gain in government revenue. Therefore, the interventions resulted in a deadweight welfare loss for society. In contrast, in the policy of liberalization, the gain in consumer surplus and in government revenue is larger than the loss in producer surplus, producing a net welfare gain to society.

Tracing the impact of market reform on productivity growth of rice at the farm level in Bangladesh

The paper measures the total factor productivity (TFP), technical change (TC) and technical efficiency change (TEC) in rice production, and traces the impact of market reform policies of the 1990s on these indices at the farm level in Bangladesh using a unique cohort of three-period panel data (1987, 2000 and 2004) of 73 farms by applying stochastic production frontier approach. Results reveal that the TFP index has increased by 27% largely due to an upward shift of the technology frontier. Although TC has increased by an impressive 57%, TEC declined by 30.1% during the post-reform period, thereby depressing overall TFP growth. The market liberalization policies exerted significantly positive impacts on TC and TFP growth but negatively on TEC. Farm size and household size also significantly improved these indices while education, tenancy and off-farm income exerted negative effects. Policy implications include continued liberalization of markets and land reform measures to increase farm size.