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ISHS Acta Horticulturae 710: International Symposium on Greenhouses, Environmental Controls and In-house Mechanization for Crop Production in the Tropics and Sub-Tropics

TECHNICAL EFFICIENCY OF PHALAENOPSIS PRODUCTION UNDER PROTECTED FACILITIES IN TAIWAN

Authors:   C.S. Lee, E.Y.W. Lin
Keywords:   technical efficiency, phalaenopsis production
Abstract:
Economic analysis of technical efficiency of phalaenopsis production under protected facilities in Taiwan is presented in this paper. Phalaenopsis production plays a more and more important role in the flower production in Taiwan. From 1998 to 2002, the relative contribution of the phalaenopsis production to total flower production increased from 17 to 29%. A field survey is used in this paper, total number of sample is 45 for research. The size of phalaenopsis production under protected facilities varies significantly ranging from less than 0.1 hectare to more than 2 hectares per farm. The stochastic production frontier function was used in this paper for estimating the technical efficiency of phalaenopsis production. The results show the rate of the technical efficiency of phalaenopsis production (TE=0.82) is very high due to the fact that the degree of capital intensity is very high in this type of production. With regards to the factors affecting the technical inefficiency, the relative importance of the stochastic technical inefficiency to the total technical inefficiency is more serious than the non-stochastic technical inefficiency in phalaenopsis production under protected facilities in Taiwan.

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