Page 82 - ACADEMIC REDING

Activity 9

Read the result of a journal article below and answer the questions that
follow.
The Title:
Comparing Efficiency between Cooperative and Non-cooperative Farms:
A Case of Sugar Beet Farmers of West Azerbaijan, Iran
The Result:
In order to compare the efficiency of cooperative and non-cooperative
farms and run the super-efficiency DEA model, we need the data of input and

output for both types of farmers. We have collected the data from main Piranshahr
sugar beet farmers by randomly interviewing 30 farmers from both cooperative

and non-cooperative groups. One sample from the non-cooperative group was
detected as an outlier.

From the interview, the data of the input was obtained. Fertilizer (kg),
pesticide (l), seed (lg) and land (ha) are the main inputs in this case study. The

input uses are converted to monetary base (IRR per ha) in our analysis. The
summary of descriptive analysis for cooperative and non-cooperative samples is

presented in Table 1. Our data show that the mean of revenue in the cooperative
set is 226,243,100 IRR per ha, while it is 148,722,200 IRR per ha in the non-

cooperative. However, the average land size of non-cooperatives is larger than
cooperatives.

Table 1. Gross Revenue and Input Costs of Cooperative
and Non-cooperative Farms (1000 IRR/ha)

Variable Cooperative Non-cooperative
Mean SD Mean SD

Gross revenue* 226,243.1 245,909 148,722.2 36,277.9

(1000 IRR/ha)
Seed (1000 IRR/ha) 9,985.8 8,306.8 7,354.7 2,353.9

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