PROFIT EFFICIENCY OF MANGO GROWERS IN THE MEKONG DELTA, VIETNAM

Abstract

The paper employed Cobb-Douglas and translog stochastic production frontier function to estimate the level of profit efficiency, and a simple random sampling technique was used to select 1,476 sample observations (526, 500 and 450 observations for seasons 1, 2, and 3, respectively) via a structured questionnaire. The results of the analysis showed that cropping season of mango growers have been round year. Difference of the study compared to past researches related to tropical fruits analyzed efficiency of three seasons instead of only focusing on efficiency of one season or total a year. The findings revealed that season 1 ranked first in terms of economic efficiency (29.41%), followed by season 3 (28.97%) and then season 2 (28.42%). Moreover, the input variables that explained profit efficiency were the root  fertilizer price and land area in all  three seasons; the labour price in the second and third season; and the fungicide price, leaf fertilizer  price in season 3. The positive determinants of profit efficiency were the farming experience, wrapping bag, market access and plant density in season 1, the wrapping bag, market access and plant density in season 2, the credit access, market access and plant density in season 3. On the other hand, the constraints to profit efficiency were the age, credit access, payment for agro-input wholesale on ending of season, and classifying sale in season 1; the age, education, credit access, payment for input wholesale on ending of season and classifying sale in season 2; and the age, education, credit access, payment for input wholesale on ending of season, wrapping bag, and classifying sale in season 3.