Skip to content
Research Article Open access CC BY 4.0

Cost Efficiency of Rice Production in Vietnam: An Application of Stochastic Translog Variable Cost Frontier

Vo Hong Tu, Nguyen Thuy Trang

Asian Journal of Agricultural Extension, Economics & Sociology · pp. 1–10 · Published 16 Sep 2015

10.9734/AJAEES/2016/19745

Abstract

Overuse of inputs in rice production results in not only lower profit but also environmental pollution. This study aimed to estimate the cost efficiency and to identify the determinants of efficiency gaps. Stochastic Translog variable cost was applied to the data of 199 rice farmers in An Giang, Mekong Delta. The study showed that the mean cost efficiency score was 90% suggesting that on the average these farmers could proportionally reduce their current variable cost by 10% without any reductions in the output level. The mean overused cost was estimated at 3,651 thousand VND (equivalent to 167.74 USD) per ha. This value is equal to the sales of 702.24 kg of output per ha or 10% increase in output level. To improve cost efficiency, rice farmers should cultivate three crops per year and use collective pumping. Regardless of output price, Jasmine and IR50404 rice varieties and the numbers of paddy plot had negative relationship with cost efficiency. The study further suggests that rice farmers are still using input mix inefficiently.

Cost efficiency rice production stochastic frontier analysis Tobit regression Translog variable cost frontier.

Cited by 5

Do rice varieties matter? Climate change adaptation and livelihood diversification among rural smallholder households in the Mekong Delta region of Vietnam

Tien D. N. Ho, Takuji W. Tsusaka, John K. M. Kuwornu · Mitigation and Adaptation Strategies for Global Change · 2021

Estimating cost efficiency and sources of inefficiency in paddy farming: A study in Vietnam’s Mekong Delta

Phuc Trong Ho, Pham Xuan Hung, Lieu Thi Hoang · Asian Journal of Agriculture and Rural Development · 2024

Land Accumulation and Economic Efficiency in Extensive Black Tiger Shrimp Farming in the Vietnamese Mekong Delta

Nguyen Thuy Trang, Dung Tran Duc, Vo Hong Tu · The Journal of Environment & Development · 2024

The Impact Of Certified Seeds Adoption On Cost Efficiency Of Horticultural Cultivation

Oktya Putri Gitaningtyas · Journal of International Conference Proceedings · 2022

Effects of varieties and seasons on cost efficiency in rice farming: A stochastic metafrontier approach

Phuc Trong Ho, Pham Xuan Hung, Nguyen Duc Tien · Asian Journal of Agriculture and Rural Development · 2023

Article metrics

Real usage data collected on this platform.

0

Page views

0

PDF downloads

0

Outbound clicks

5

Citations

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

No views recorded yet.

Traffic sources

Referring site, by host.

No traffic recorded yet.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.