Factors influencing paddy producers’ profitability and sale to markets: evidence from Battambang Province, Cambodia

Abstract

While rice farming is essential for livelihoods of smallholder farmers and the economy, there is limited evidence of specific socioeconomic determinants of paddy sale and profitability of Cambodian farmers. The study analyzes factors influencing sale and profitability of paddy production in Battambang Province using primary data collected from randomly selected 242 paddy farmers in the northwest of Cambodia. The data were analyzed using the log-linear ordinary least squares regression. The results show that paddy farming is profitable with the benefit-cost ratio of around 2.0. Besides, smallholders obtained larger profitability than medium- and large-scale farmers due to the diseconomies of scale. Fertilizer, pesticide, harvesting, and seed costs were major cost items for paddy production in the study area. Education level of household heads, household size, land are under paddy, the quantity of paddy consumed at home, the quantity of paddy retained for seed recycling, varieties of rice, and distance to markets significantly influenced paddy sale to markets, while education level of household heads, farming experience, household size, varieties of rice, selling price, cost of seed, and cost of fertilizer were found to influence the profitability of paddy production. Farm policies should aim at increasing paddy fields, expanding irrigation systems, promoting premium rice varieties, and supporting the farm gate price of paddy produce, while reducing the prices of inputs, particularly seed and fertilizer.