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Economic assessment of mangosteen farmers’ adoption of good agricultural practice (GAP) in Rayong Province, Thailand
Thesis Abstract:
Good agricultural practice (GAP) in Thailand involves farm management practices such that application of inorganic fertilizers and pesticides are minimized, among others. This is to assure the export market of food safety. Farmers attend a GAP training to learn about it. For purposes of policy, it is important to understand the economic benefits of GAP to the farmers.
This study was conducted to compare yields, profits, and prices received by GAP (those who attended training) and non-GAP (those who did not attended training) mangosteen farmers. Mangosteen was of interest because of its export market potential. The study also attempted to determine and compare the technical efficiency between GAP users and non-GAP users; and identify the factors affecting technical efficiency of mangosteen farmers in Rayong Province, Thailand.
Results of the comparative analysis of yields and net benefits showed that the mean yield (4,496.03 kg/ha for GAP and 3,802.30 kg/ha for non-GAP) and net farm incomes (THB 59,992.99/ha for GAP and THB 31,850.59/ha for non-GAP) obtained from GAP farms were significantly higher than those of non-GAP farms. The price of mangosteen from GAP farms (THB 19.54/kg) was also higher than those from non-GAP farms (THB 16.85/kg) because of the higher fruit quality as a result of the application of GAP knowledge by the trained farmers. Furthermore, GAP farms had lower input cost than those of non-GAP farms because of lower amount of input use. GAP farmers needed to control chemical residue rate in mangosteen and pollution of their farms as required.
The Cobb-Douglas frontier production function estimates showed that GAP farmers’ mangosteen production was significantly influenced by nitrogen use. Herbicide was found to be overused. Non-GAP farmers’ mangosteen production was influenced by hired labor and manure use. Average age of trees of GAP farmers was higher than that of non-GAP which could also explain the higher yields of GAP farmers. Agronomically, yields tend to increase until age 30, after which yields decline.
The mean technical efficiency of GAP farmers (69.78%) was found to be higher than those of non-GAP farmers (60.59%). Farmers’ experience and education were significant factors in explaining technical efficiency. The study also found that GAP farmer-owners had lower technical efficiency than GAP farmer-lessees. This is true in reality as the lessees would try to recoup their production investments including their land rental.
The results of the study support the program of Thai government to conduct more GAP training as farmers benefit from this. More study on the impact of GAP on food safety and the environment could also strengthen further the justification for promoting GAP in Thailand.
