Call Prefix : PR-T

Call Suffix : 2017

Call Cutter : T - AgEc 69

Location : SEARCA Library

Format : TD

Publisher : University of the Philippines Los Baños

Publication Date : June 2017

Publication Place : Los Baños, Laguna, Philippines

Summary : Pig production is considered a major source of livelihood in Nghe An Province, Vietnam since it is its highest-grossing livestock commodity. At present, swine production in the province is undergoing transitions in scale, from small- to large-scale production, and in location, from residential to those outside residential areas. To encourage hog production development, the government has enacted policies that focus on expanding production scale and improving efficiency. However, studies on current economic efficiency and returns to scale levels of pig production are limited. This study provides information on economic efficiency level, returns to scale, and factors affecting efficiency that could serve as reference for producers and policymakers. Primal system approach was utilized to estimate cost efficiency. A total of 186 pig producers from three Nghe An districts were interviewed. Variables used in estimation included the following: Output (y) measured in terms of average weight of pig sold during the last cycle, average quantity of feeds per pig (FEE), average weight of piglets grown (BREE), and average of man-day labor per pig (LAB); average price of feeds (wi); average price of piglets (wb); and average wage rate (wl). Results showed that the variable average weight of piglets exhibited the highest efficiency in terms of input use, followed by the average quantity of man-day, and average amount of feeds. Both Marginal Rate of Technical Substitution (MRTS) ofbreedlfeed and breedllabor were lower than the cost minimizing ratios. Meanwhile, the economics of scale analysis indicated that, in general, pig producers experienced increasing returns to scale (IRS) with a mean level of2.7l. The inefficiency of pig producers in cost minimization is mainly driven by inefficiency in input allocations. On the average, costs increased by 73.7%, owing to a 73.6% allocative inefficiency and 0.48% technical inefficiency. Regarding the impacts of socioeconomic indicators on efficiency, results indicated that farmers' engagement in trainings and access to veterinary services improved efficiency.