1 AIT Asian Institute of Technology

Assessment of performance and profitability of the private sugarcane production system in Myanmar : a case study in Mandalay Division

AuthorYu Yu Mon
Call NumberAIT Thesis no.AS-05-31
Subject(s)Sugarcane--Myanmar

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Science, School of Environment, Resources and Development
PublisherAsian Institute of Technology
Series StatementThesis ; no. AS-05-31
AbstractSugarcane is not only the major industrial crop but also a food crop with increasing local Consumption and export over the years 1990s and early decade of this century. Production share of state sector and private sector is nearly the same. Private sugarcane production is increased year by year due to area expansion. The increase in production should have to come from a breakthrough in productivity and increased efficiency in production. The issue is to find out whether the farmers are technically efficient in their resource utilization in sugarcane production. The objective of this study was to investigate the profitability and technical efficiency of private sector sugarcane farmers in Sinku Township. A field survey, covering 108 sugarcane farmers in the selected township, was conducted from February to June of 2005. The cross sectional data were obtained for 2004-2005 crop season. Firstly, the enterprise budget was used to compare the profitability for different farm sizes and different plant types of nature. The stochastic production frontier was then applied to examine the technical efficiency of sugarcane production using LIMDE1 version (7) software. The empirical results of Gross Marginal Analysis (GMA) indicated that medium fame size group was more financially attractive than other farm size groups. Net profits of ratoon farms were greater than new plant farms. The modeling results showed that mean technical efficiencies for small, medium and large farm size group farmers were 0.86, 0.91, and 0.84, respectively. The technical efficiencies of medium fanciers were varied from 0.66 (66%) to 1.00 (100%) with the mean value of 0.91 (91%) that was the highest estimated mean technical efficiency among different farm size groups. In two types of plant natures, the new plant type of farmers' technical efficiency was higher than ratoon plant farmers. The technical efficiency of ratoon farmer was 0.87 (87%) while it was 0.90 (90%) for new plant farmers. The empirical results for all selected farmers show that out of the variables identified, total labor and animal labor used in land preparation, cultivation, and transporting to the syrup processing plant, capital investment, fertilizer application, weeding three times and above application, and machine used by the farm for land preparation were the most important explanatory variables in the frontier estimate. As for ratoon plant, seed use total human labor and animal labor used, irrigation and extension contact were more important than other variables. Since the production system is dominated by a multiple system, above variables used in sugarcane production would have an important role in increasing total output. The technical and allocative efficiencies must be promoted firstly in order to improve the fancier's economic efficiency. Farmers should allocate their resources at the optimal to get higher economic efficiency. Therefore, the assessment of farms' profitability and technical efficiency are essential requirement for this area
Year2005
Corresponding Series Added EntryAsian Institute of Technology. Thesis ; no. AS-05-31
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Food, Agriculture and Natural Resources (Former title: Department of Food Agriculture, and BioResources (DFAB))
Academic Program/FoSAgricultural and Aquatic Systems (AS)
Chairperson(s)Shivakoti, Ganesh P.;
Examination Committee(s)Jayasuriya, H.P.W.;Schmidt-Vogt, Dietrich;
Scholarship Donor(s)Joint Japan/World Bank Graduate Scholarship Program, AIT Fellowship;
DegreeThesis (M.Sc.) - Asian Institute of Technology, 2005


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