Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


Economic efficiency of beef cattle production in Thailand

Author(s): Khunchaikarn, S., Mankeb, P., & Suwanmaneepong, S.

Beef farming in Thailand has expanded considerably in recent years. However, the amount of beef supply is still insufficient to meet current demand. This study characterised beef cattle farmers in Thailand and determined their economic efficiency about the technical, allocative, and cost aspects of raising beef cattle. Data were collected from 325 beef cattle farmers across five regions and 21 provinces, representing the upstream beef cattle segment. Data Envelopment Analysis (DEA) was employed to measure the Technical Efficiency (TE), Allocative Efficiency (AE), and Economic Efficiency (EE) of the beef cattle farmers. The results showed that farmers have overall TE, AE, and EE scores of 76%, 36% and 29%, respectively. Under the Constant Returns to Scale (CRS) scenario, the DEA showed lower efficiency than under the Variable Returns to Scale (VRS) scenario, indicating scale inefficiency. The results suggest that the beef cattle industry in Thailand can enhance efficiency by improving farms’ allocation of inputs rather than focusing on producing within the production frontier. Government policy and projects are recommended to develop the knowledge and skills of beef cattle farmers in determining the optimal input mix, which is predicted to improve the level of EE by 71%.

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