Awam Anuar Mat Esa
Farmers’ Organization Authority
To fulfill highly expectations of the government and to retain continuous supports from the members, Area Farmers Organization (AFOs) is anticipated to be an efficient organization. Hence, one way to measure the ability of an organization is through efficiency measurement. Therefore, this paper examines the technical efficiency (TE) of AFOs and determinant factors of efficiency; from 2006 to 2010. The efficiency is measured through three different dimensions namely as economic, social and socio-economic. For the purpose of the study, a two stage Data Envelopment Analysis (DEA) is used. In the first stage, DEA applied to measure the efficiency score of 56 AFOs. In the second stage, the efficiency score obtained and regressed by using Tobit model. Based on previous study, determinant factors such as assets, location, year of operation, types of business, manager’s education, size of business and size of membership serve as independent variables. The efficiency analysis in the study reveals most of the AFOs are plagued with inefficiency. The average technical efficiency scores recorded at 0.708, 0.672 and 0.790 under economic, social and socio-economic dimensions respectively. As for determinant factors, the variables liked location, age of operation, size of business and membership are found to have a positive relationship with efficiency level.
