Cost Efficiency of RSPO Oil Palm Farms in Thailand
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Abstract
According to Roundtable on Sustainable Palm Oil (RSPO), Thailand is the first oil palm producer in the world to achieve independent smallholders RSPO-certified under the RSPO Group Certification in 2012. The purpose of this study is to measure cost efficiency and to identify factors affecting cost efficiency in RSPO oil palm plantation in Thailand. The RSPO record book from 2014 was analyzed using data envelopment analysis method in value-based cost efficiency model of Tone (2002). The estimated cost efficiency of RSPO oil palm farms was found to be 62.66 percent with a minimum of 32.42 percent and a maximum of 100 percent. The result of this study revealed that the important factors affecting positive relationship on cost efficiency are applied empty fresh fruit bunch and paid for water supply.
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