Smallholders cocoa production in Sabak Bernam: Implications on economies of scale

Mohd Noor Mamat, . and Saaban Shahar, . Smallholders cocoa production in Sabak Bernam: Implications on economies of scale. pp. 45-53. ISSN 0128-0686

A Cobb-Douglas production function was applied to study economies of scale behaviour in cocoa smallholders in Sabak Bernam Selangor Malaysia. Variables land labour fertilizer and chemical were regressed on production using Ordinary Least Squares (OLS) technique. The data for the study was obtained from a survey of cocoa and coconut smallholders in Sabah Bernam Selangor in 1982. The results showed output supply elasticities of land labour and fertilizer inputs of 0.710 0.053 and 0.133 respectively while the input chemical showed statistical insignificance. The production elasticity was found to be 0.9 but this does not imply declining returns to scale for cocoa smallholders in Sabak Bernam. The less than unity production elasticity indicated the exclusion of important variables especially the age of cocoa trees which is important to production. The result indicated constant returns to scale in the smallholder cocoa production in Sabak Bernam.

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Abstract

A Cobb-Douglas production function was applied to study economies of scale behaviour in cocoa smallholders in Sabak Bernam Selangor Malaysia. Variables land labour fertilizer and chemical were regressed on production using Ordinary Least Squares (OLS) technique. The data for the study was obtained from a survey of cocoa and coconut smallholders in Sabah Bernam Selangor in 1982. The results showed output supply elasticities of land labour and fertilizer inputs of 0.710 0.053 and 0.133 respectively while the input chemical showed statistical insignificance. The production elasticity was found to be 0.9 but this does not imply declining returns to scale for cocoa smallholders in Sabak Bernam. The less than unity production elasticity indicated the exclusion of important variables especially the age of cocoa trees which is important to production. The result indicated constant returns to scale in the smallholder cocoa production in Sabak Bernam.

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Item Type:	Article
Additional Information:	5 tables; 8 ref. Summary (En Malay)
AGROVOC Term:	MALASIA PENINSULAR
AGROVOC Term:	SISTEMAS DE EXPLOTACION
AGROVOC Term:	EXPLOTACION EN PEQUENA ESCALA
AGROVOC Term:	THEOBROMA CACAO/ FUNCIONES DE LA PRODUCCION
Depositing User:	Ms. Norfaezah Khomsan
Last Modified:	24 Apr 2025 05:55
URI:	http://webagris.upm.edu.my/id/eprint/20060

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