Production Efficiency Analysis of Indigenous Pig Production in Northwest Vietnam

Date Received: Jun 18, 2020

Date Published: Dec 31, 2020

Views

1830

Download

726

Section:

ECONOMICS, SOCIETY AND RURAL DEVELOPMENT

How to Cite:

Tuan, T., Tong, Y., Cuong, T., Tiep, N., & Sven, K. (2020). Production Efficiency Analysis of Indigenous Pig Production in Northwest Vietnam. Vietnam Journal of Agricultural Sciences, 3(4), 882–891. https://doi.org/10.31817/vjas.2020.3.4.11

Production Efficiency Analysis of Indigenous Pig Production in Northwest Vietnam

Tran Ba Tuan (*) 1 , Tong Yin 2 , Tran Huu Cuong 3 , Nguyen Cong Tiep 4   , Sven König 2

  • Corresponding author: tuan.rdp@gmail.com
  • 1 North Vietnam College of Agriculture and Rural Development, Hanoi 134000, Vietnam
  • 2 Institution of Animal Breeding and Genetics, Justus Liebig University Gießen, Gießen 35390, Germany
  • 3 Faculty of Accounting and Business Management, Vietnam National University of Agriculture, Hanoi 131000, Vietnam
  • 4 Faculty of Economics and Rural Development, Vietnam National University of Agriculture, Hanoi 131000, Vietnam
  • Keywords

    Stochastic frontier, economic efficiency, indigenous pig, production, North-west Vietnam

    Abstract


    This research was conducted to investigate the production efficiency of Ban pig production in northwest Vietnam between October 2016 and January 2017. Primary data obtained from 171 producers were analyzed by applying cost-benefit analysis and stochastic frontier production function. The benefit-cost ratio per litter was 1.24, indicating that the enterprise was profitable. Compared to other farms, the farms focused on farrow-to-finisher attained the highest net return (EUR 213.71/litter), while inputs were used most effectively by the mixed farms. The results from the Cobb-Douglas production function revealed that labour, feeding costs, stocking density, and pigpen structure had positive effects on the production output. Additionally, farms with the phase of farrow-to-nursery obtained less total revenue, while farms focused on the farrow-to-finisher phase achieved higher production outputs than the mixed farms. The level of technical efficiency for each farm ranged between 0.62 and 0.98, with a mean of 0.88. The number of live-born piglets and depreciation cost had positive effects, whereas the nursery interval had a negative impact on the technical efficiency. Ban pig producers could increase technical efficiency by efficiently utilizing available resources and improving managerial skills.

    References

    Abdulai A. & Tietje H. (2007). Estimating technical efficiency under unobserved heterogeneity with stochastic frontier models: application to northern German dairy farms. Eurpean Review of Agricultural Economics. 34: 393-416.

    ACIAR-ILRI-CAP (2008). Market actor survey. Hanoi.

    Adetunji M. & Adeyemo K. (2012). Economic efficiency of pig production in Oyo State, Nigeria: a stochastic production frontier approach. American Journal of Experimental Agriculture. 2: 382.

    Aigner D., Lovell C. K. & Schmidt P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics. 6: 21-37.

    Ali M. & Chaudhry M. A. (1990). Inter‐regional farm efficiency in Pakistan's Punjab: a frontier Production function study. Journal of Agricultural Economics. 41: 62-74.

    Aminu F. O. & Akhigbe-Ahonkhai C. E. (2017). Profitability and Technical Efficiency of Pig Production in Nigeria: the Case of Ekiti State. Agricultura Tropica et Subtropica. 50: 27-35.

    Anderson S. (2003). Animal genetic resources and sustainable livelihoods. Ecological economics. 45: 331-339.

    Battese G. E. & Coelli T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical economics. 20: 325-332.

    Belete A., Setumo M., Laurie S. & Senyolo M. (2016). A Stochastic Frontier Approach to Technical Efficiency and Marketing of Orange Fleshed Sweet Potato (OFSP) at Farm Level: A Case Study of Kwazulu-Natal Province, South Africa. Journal of Human Ecology. 53: 257-265.

    Dzung N. M. (2014). Pig production and marketing in Vietnam. Country report. 145-152.

    Etim N., Etim N. & Offiong E. E. (2014). Estimation of efficiency in small scale pig production. EURpean International Journal of Science and Technology. 3: 111-118.

    Ezeibe A. (2010). Profitability analysis of pig production under intensive management system in Nsukka Local Government Area of Enugu State, Nigeria. International Journal of Economic Development

    Research and Investment. 1: 48-54.

    Førsund F. R., Lovell C. K. & Schmidt P. (1980). A survey of frontier production functions and of their relationship to efficiency measurement. Journal of Econometrics. 13: 5-25.

    GSO (General Statistical Office) (2016). Statistical Yearbook Vietnam 2015. Statistical Publishing House, Hanoi, Vietnam.

    Hung P. V., Nga N. T. D. & Lapar L. (2015). Improving the livelihood of small farmers in the pig value chain: Experiences in the north of Vietnam. Regional seminar on "Agriculture Development for the Mekong Delta: How to Increase the Livelihood of Farmers", Can Tho City, Vietnam, April 24, 2015. Hanoi, Vietnam: Vietnam National University of Agriculture.

    Hung P. V., Nga N. T. D. & Lapar L. (2017). Pig production and farm income in the pig value chain in Hung Yen and Nghe An provinces. Vietnam Journal of Agricultural Science. 15(9): 1301-1308.

    Ly N. T., Nanseki T. & Chomei Y. (2016). Technical Efficiency and Its Determinants in Household Pig Production in Vietnam: A DEA Approach. The Japanese Journal of Rural Economics. 18: 56-61.

    Meeusen W. & van Den Broeck J. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International Economic Review. 18(2): 435-444.

    Ojo S. (2003). Productivity and technical efficiency of poultry egg production in Nigeria. International Journal of Poultry Science. 2: 459-464.

    Palmer S. & Torgerson D. (1999). Economic Notes: Definitions of Efficiency. BMJ Clinical Research. 318(7191): 1136. DOI: 10.1136/bmj.318.7191.1136.

    Rahman S., Barthakur S. & Kalita G. (2008). Pig production and management system in Aizawl district of Mizoram, India. Livestock Research for Rural Development 20 (9)

    Sharma K. R., Leung P. S. & Zaleski, H. M. (1999). Technicalities allocative and economic efficiencies in swine production in Hawaii. A comparison of parametric and non parametric approaches. Agricultural Economics. 20:23-35.

    Shomo F., Ahmed M., Shideed K., Aw-Hassan A. & Erkan O. (2010). Sources of technical efficiency of sheep production systems in dry areas in Syria. Small Ruminant Research. 91: 160-169.

    Sikasunge C., Phiri I., Phiri A., Dorny P., Siziya S. & Willingham A. L. (2007). Risk factors associated with porcine cysticercosis in selected districts of Eastern and Southern provinces of Zambia. Veterinary Parasitology. 143: 59-66.

    Umeh J. C., Ogbanje C. & Adejo M. (2015). Technical efficiency analysis of pig production: A sustainable animal protein augmentation for Nigerians. Journal of Advanced Agricultural Technologies. 2(1). DOI: 10.12720/joaat.2.1.19-24.