Technical Efficiency in Rice Production of Farmers in Cooperatives in Chau Thanh District, Kien Giang Province, Vietnam

Abstract

Kien Giang is the largest rice production province in Mekong Delta, Vietnam. There is very limited research on rice production in the agricultural cooperatives as well as issues regarding technical efficiency and factors affecting technical efficiency in rice production of the cooperative farmers. Therefore, this study aims to assess characteristics of the rice farmers and problems in rice production in the cooperatives in Kien Giang Province, Vietnam. The study also estimates technical efficiency in rice production and analyzes the factors affecting technical efficiency in rice production in the cooperatives. The data were obtained from 276 rice farmers under four selected cooperatives in Chau Thanh District under Kien Giang Province. Descriptive Statistics and Cobb-Douglas stochastic frontier model were applied to analyze the data. The results show the mean technical efficiency in rice production of cooperative farmers was 92.4%. The findings revealed that farm size, quantity of seed, active potassium and labor hours significantly affected the technical efficiency in rice production. However, experience in rice production, technical training classes, years of joining cooperative, number of rice crop per year and variety significantly affected the technical inefficiency. The study also suggests some measures to improve technical efficiency in rice productions. The farmers should reduce the quantity of seed, increase active potassium, and visit rice fields regularly. The cooperative management should have at least one member with a business mind". The government should have policy to gather small rice fields to establish the large field. In the Law of Cooperatives, the government should remove the limitation of providing services outside the cooperative not exceed 32%.