RSUSCI-2021 & RSUSOC-2021
IN21-060 Do Dairy Cooperatives perform their Own Business with the Technical Efficiency? : The Evidence from Dairy Cooperatives in Nakhon Ratchasima Province Area, Thailand.
Presenter: Anucha Wittayakorn-Puripunpinyoo
School of Agriculture and Cooperative, Sukhothai Thammathirat Open University,Parkkred, Nonthaburi, Thailand, 11120, Agriculture and Cooperatives, Sukhothai Thammathirat Open University
Abstract
Since 1962, when the first dairy farming in Thailand has been started, Thai dairy farmers have adopted dairy farms as their career of living. They gathered themselves as a dairy cooperative for business operation. Until now, dairy cooperatives have never known that they performed their own business with technical efficiency or not. In this paper, the researcher attempted to answer this question with the research objective to analyze the technical efficiency of dairy cooperatives in the Nakhon Ratchasima province area. This research focused on quantitative analysis. Times-series and cross-sectional data were collected from the cooperative auditing department database from 10 dairy cooperatives from 2008 to 2020. 130 observations were selected, and data analysis was applied to the panel data econometrics model to analyze the dairy cooperatives’ technical efficiency.
The findings found that the overall average of 10 dairy cooperatives in the Nakhon Ratchasima province area obtained a very high performance of technical efficiency score of 0.98 whereas 2 out of 10 dairy cooperatives performed their own business with their outstanding technical efficiency score of 1.000 and 1.000, respectively. There is a tendency to increase the number of dairy farmers in Nakhon Ratchasima province, which indicates that the production of raw milk by dairy cooperatives tends to increase in response to the increased demand for milk and dairy products of domestic consumption. Also, the dairy cooperatives’ business performance still needs government assistant both academic and financial supports.