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- Economic Study of Sugarcane Production in Supanburi, Thailand
Economic Study of Sugarcane Production in Supanburi, Thailand
Thesis Abstract:
Objective of the study were to identify factors that affect sugarcane production in Thailand, estimate resource productivity of the factors, quantity production cost and returns, and suggest policy measures which can help improve sugar output levels.
Included in the study were 130 irrigated sugarcane farms in three districts of Supanburi. Characteristics of farm operators and production data for crop year 1972 -1973 were gathered through personal interviews. Analyses used were of three types. Farm business analysis, production function analysis, and correlation analysis.
Average farm size was 56 rai* ofwhich 40 rai (72%) was devoted to sugarcane. Average capital investment was 160.996 baht* with land contributing 57%, machinery 26%, and building 16%. The rest of the investment was on tools and equipment and livestoch.
Average plan cane yield was 11.41 tons per rai; that of ratoon cane, 10.86 tons per rai. Average net return above total cost of paint cane was 418 baht per rai, or 38 baht per ton cane; that of ratoon cane as 483 per rai, or 45 per ton cane. Average net return was highest on medium farms.
The cob-Douglas production function fitted by multiple regression to the basic input-output data showed that production elasticities for the individual inputs of each farm group were less than unity, indicating that diminishing return to scale existed among the input factors. The sums of production elesticities of all farm groups were greater than unity, showing that increasing returns to scale existed in each farm group.
Coefficients of determination of all farm groups were .6832 for small farms (1-14 rai), .8012 for medium farms (15-99 rai), and .8716 for large farms (100 rai and above).
The marginal value product of land ranged from -252 baht on large farms to 547 baht on small farms. Marginal value products of small and medium farms were higher than their factor cost. Only on large farms was the was the marginal value product of tools and machinery less than the factor cost. Only on large farms was the marginal value product of tools and machinery less than the farms was the marginal value products of tools and machinery less than the factor cost.
For all farms, 7% of yield variation per rai could be explained by the variation in the amount of nitrogen, phosphorus and potassium applied. About 5, 26 and 6% of yield variation could be explained by the number of man-days employed in fertilizer application, weeding and cultivating, respectively.
Results of the study suggest that sugarcane production levels could be raised by improving farm practices and extension services, providing production credit, expanding the sugarcane business, and increasing and/or adjusting farm resource inputs.
