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Efficiency of smallholder cocoa farmers in Malaysia: a DEA approach

Fadzim, Wan Roshidah and Azman Aziz, Mukhriz Izraf and Abdul Jalil, Ahmad Zafarullah (2017) Efficiency of smallholder cocoa farmers in Malaysia: a DEA approach. International Journal of Supply Chain Management (IJSCM), 6 (1). pp. 214-219. ISSN 2050-7399

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Cocoa production in Malaysia faced several problems and challenges that lead to low productivity.The low productivity is evidenced from the continuous drop in cocoa production since 2001 despite efforts from governing bodies to boost output.This study investigates this issue by looking into the production efficiency among small holder cocoa farmers in Malaysia. The technical efficiencies of cocoa farmers in Malaysia are estimated using data envelopment analysis. The study relies upon primary data gathered during the 2013 production season.Data are collected from a set of structured questionnaire administered on 323 smallholder cocoa farmers throughout Malaysia. Results of the analysis reveal that the mean efficiency score is 0.576.This indicates that many cocoa farmers in Malaysia are technically inefficient and this resulted into the low productivity in the Malaysian raw cocoa beans industry in recent years.This inefficiency is largely due to poor management and usage of inputs in the cocoa production.

Item Type: Article
Uncontrolled Keywords: Cocoa, technical efficiency, data envelopment analysis
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Wan Roshidah Fadzim
Date Deposited: 20 Apr 2017 05:10
Last Modified: 20 Apr 2017 06:09

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