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Abstract

Farm-specific profit inefficiency among Khao Dawk Mali and glutinous rice producers was estimated from a stochastic profit frontier. The mean level of farm inefficiency, given farm-specific prices and level of fixed factors, was estimated at 32% (with range 33%-92%) for Khao Dawk Mali and 20% (with range 50%-93%) for glutinous rice, respectively. The average loss of profit per ha is estimated at Baht 3,858 for Khao Dawk Mali and Baht 2,702 for glutinous rice, respectively. A 25% reduction in the estimated profit loss among Khao Dawk Mali rice producers would generate about Baht 293 million additional profit each season.

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