Ponte Academic Journal Apr 2023, Volume 79, Issue 4 |
COST-EFFICIENCY ANALYSIS OF PINEAPPLE PRODUCTION IN THAILAND Author(s): Phattarapong Malawal ,Nattanin Ueasin, Wongchai Anupong, Ke-Chung Peng J. Ponte - Apr 2023 - Volume 79 - Issue 4 doi: 10.21506/j.ponte.2023.4.4 Abstract: Thailand is the world's largest exporter of canned pineapple, although 90% of production is produced for export that the cancellation of commercial privileges had an effect on competitiveness and supply chain, which were formerly vital. In 2018, manufacturers' severe pineapple overstock crisis, greatly affects the purchase price are directly impacted farmers' income. Therefore, this research aimed to analyze the cost management of pineapple production in 2017/18 during this crucial price situation by using a stochastic frontier approach of 388 pineapple farmers in Loei and Nong Khai Provinces in northeastern Thailand. The results showed that overproduction and the usage of fertilizers: Ammonium sulfate and 15-15-15 formula are lacks economy of scale. The surprisingly direction of the variable inefficiency coefficient in this unusual situation that increases the inefficiency are contacting with agricultural extension officers and using flower accelerator. It appears the average of cost-efficiency index only 0.146 indicated the farmers are unable to adjust their crop management and strategies sufficiently. Lastly, it should adequately inform farmers about the process of the circumstances. It is also necessary to mention hedging tools such as farmers' access to contact framing, improving agriculture cooperatives and farmers association, buffer funds, and agricultural price insurance to ensure resilience to any shocks.
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