Allocative Efficiency of Chu-Mango Farms in Dong Thap, Vietnam

Abstract

The purpose of this research was to examine the allocative efficiency of Chu mango cultivation in Dong Thap, Vietnam. Stochastic frontier analysis was used to estimate farm-level efficiency ratings, and maximum likelihood estimation methods were used to determine parameter coefficients. A well-structured questionnaire was used to collect data for 684 observating samples. The study's findings indicated that the mean allocative efficiency was 0.639, 0.693, and 0.840 in seasons 1, 2, and 3, respectively. The most efficient farmer of mangoes would have recommended a gain in allocative efficiency of 77,79%, 83.59%, and 24.85%, whereas the least efficient one would have saved 33,74% in season 1, 25.37% in season 2, and 15.71% in season 3. The cost of fertiliser, pesticide, wrapping bags, hired labour, and family labour are the major factors affecting Chu mango output. In terms of socioeconomic variables, family size increases allocative efficiency in season 2, whereas age and farming experience reduce allocative efficiency in season 2. Allocative efficiency in the second season is positively correlated with credit availability and education, but negatively correlated with age and agricultural experience. The study recommends prioritising credit programmes for Chu mango growers via the Agriculture and Rural Developmenr Bank Sytstem. In Dong Thap, Vietnam, connecting small-scale Chu mango growers to micro-finance institutions for loans and incorporating them into sustainable training and extension programmes will boost production efficiency.