Abstract
This study analyzes the pineapple production efficiency of the Integrated Agricultural Development Project (IADP) in Samarahan, Sarawak, Malaysia and also studies its determinants. In the study area, IADP plays an important role in rural development as a poverty alleviation program through agricultural development. Despite the many privileges received by the farmers, especially from the government, they are still less efficient. This study adopts the Data Envelopment Analysis (DEA) in measuring technical efficiency. Further, this study aims to examine the determinants of efficiency by estimating the level of farmer characteristics as a function of farmer’s age, education level, family labor, years of experience in agriculture, society members and farm size. The estimation used the Tobit Model. The results from this study show that the majority of farmers in IADP are still less efficient. In addition, the results show that relying on family labor, the years of experience in agriculture and also participation as the association’s member are all important determinants of the level of efficiency for the IADP farmers in the agricultural sector. Increasing agriculture productivity can also guarantee the achievement of a more optimal sustainable living in an effort to increase the farmers’ income. Such information is valuable for extension services and policy makers since it can help to guide policies toward increased efficiency among pineapple farmers in Malaysia.
Highlights
The Data Envelopment Analysis (DEA) efficiency score can be summarized to show how much supposedly the farmers maximum output production is without addition of input if it can be considered as the best technical efficiency
The objective of this study was to apply a two-step methodology to investigate the technical efficiency and assess the factors that influence the efficiency of crop production in Integrated Agricultural Development Project (IADP) Samarahan, Sarawak
The lack of empirical studies in Malaysia, which focus on the factors affecting the efficiency of the crop production, motivated this study
Summary
The. Domestic Product (GDP) and providing employment for Policy of Malaysia (NAP 3) are to enhance food security, 12 percent of the population Malaysia, 2010. Sarawak is one of the states that contributes about 1.8 percent of the country’s commodity products; apart from the three main increase productivity and the competitiveness of the sector, deepen linkage with other sectors, create new sources of growth and to conserve and utilize crops which are rubber, oil palm and cocoa, Sarawak produces a number of fruits and vegetables for the natural resources on a sustainable basis. Determining the existing level of efficiency will be useful to improve these relationships that can help farmers allocate their resources more wisely and to assist the government in designing and searching for new policy tools to reach sector-specific goals
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