Economicidade dos insumos modernos em fazendas de cacau
The present study considers the utilization of the modern inputs such as fertilizers, fungicides, insecticides, etc recommended by Comissao Executiva do Plano da Lavoura Cacaueira (CEPLAC) in cocoa production, at the farm level in southern Bahia during the agricultural year 1971/72. Considering that these inputs require additional investments and the return of these investments depends on the marginal productivity of the resources and the price of the product obtained, the problem seems to be the uncertainty of knowing whether the value of the marginal productivity is sufficient to cover that investment. The specific objectives of this study were; 1) to estimate and analyze the value of the marginal physical product of the resources and modern inputs, 2) to estimate the partial and total elasticities of production, and 3) to estimate and analyze the marginal net return and the marginal rate of return of investment. The data used to study the relevant aspects of cocoa production were obtained from farm records from the Agricultural Records Project conducted by CEPLAC. These farms, which comprised a distinct population, kept records in a uniform manner. All utilized fertilizers, herbicides and fungicides according to CEPLAC's recomendations. Cobb-Douglas production functions were estimated using the ordinary least squares technique. Four regression equations were estimated, of which one was chosen for detailed analysis. Its regression coefficients were highly significant. Also included in the analysis were other indicators, such as the correlation matrices. These demonstrate desirable characteristics from a statistical point of view and also provide insights for economic analysis. The production obtained was measured in units of arrobas (1 arroba = 15 kg), and the resources utilized were measured by the value of the flow of services rendered. The partial elasticities of production suggested that all the factors, including modern inputs, made a positive contribution to the production of cocoa. An increase of 10 per cent in investments in modern inputs causes a 1.1 per cent increase in the physical production of cocoa. Constant returns-to-scale were implied by the analysis. The results suggest that the cocoa producers studied are producing at the rational stage of production although the economic optimum has still not been reached. Increases are implied in the level of use of all resources considered. Under current conditions of resource use, the conclusion is reached that the output obtained is adequate to remunerate all the factors of production. The results suggested that the modern inputs applied in Bahia cocoa production are profitable, but this profitability, approximately equal to 24 per cent, could be increased more rapidly than that for other inputs, given the behavior of the prices of modern inputs, given the orientation of agricultural research, and given that the elasticity of the marginal rate of return on investment for modern inputs is more sensitive to variations in the price of cocoa than is that for the other resources. The marginal rate of return for land in cocoa production was estimated at 94.4 per cent, for miscellaneous expenditure, 7.2 per cent; for flow for services of improvements, livestock and equipment, 21.9 per cent; for manual labor, the estimated rate for return was 89.9 per cent and for the modern inputs, 23.6 per cent. The marginal net return on working capital indicates that for the next cruzeiro invested in land in cocoa production, there is a gain of Cr 1.11; for miscellaneous expenditures, Cr 0.08; for buildings, livestock and equipment, Cr 0.26; for manual labor Cr 0.98, and for modern inputs, Cr 0.25
| Main Authors: | , , , |
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| Format: | biblioteca |
| Published: |
1974
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| Subjects: | THEOBROMA CACAO, INSUMOS AGRICOLAS, ANALISIS DE COSTOS Y BENEFICIOS, BAHIA, BRASIL, |
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| Summary: | The present study considers the utilization of the modern inputs such as fertilizers, fungicides, insecticides, etc recommended by Comissao Executiva do Plano da Lavoura Cacaueira (CEPLAC) in cocoa production, at the farm level in southern Bahia during the agricultural year 1971/72. Considering that these inputs require additional investments and the return of these investments depends on the marginal productivity of the resources and the price of the product obtained, the problem seems to be the uncertainty of knowing whether the value of the marginal productivity is sufficient to cover that investment. The specific objectives of this study were; 1) to estimate and analyze the value of the marginal physical product of the resources and modern inputs, 2) to estimate the partial and total elasticities of production, and 3) to estimate and analyze the marginal net return and the marginal rate of return of investment. The data used to study the relevant aspects of cocoa production were obtained from farm records from the Agricultural Records Project conducted by CEPLAC. These farms, which comprised a distinct population, kept records in a uniform manner. All utilized fertilizers, herbicides and fungicides according to CEPLAC's recomendations. Cobb-Douglas production functions were estimated using the ordinary least squares technique. Four regression equations were estimated, of which one was chosen for detailed analysis. Its regression coefficients were highly significant. Also included in the analysis were other indicators, such as the correlation matrices. These demonstrate desirable characteristics from a statistical point of view and also provide insights for economic analysis. The production obtained was measured in units of arrobas (1 arroba = 15 kg), and the resources utilized were measured by the value of the flow of services rendered. The partial elasticities of production suggested that all the factors, including modern inputs, made a positive contribution to the production of cocoa. An increase of 10 per cent in investments in modern inputs causes a 1.1 per cent increase in the physical production of cocoa. Constant returns-to-scale were implied by the analysis. The results suggest that the cocoa producers studied are producing at the rational stage of production although the economic optimum has still not been reached. Increases are implied in the level of use of all resources considered. Under current conditions of resource use, the conclusion is reached that the output obtained is adequate to remunerate all the factors of production. The results suggested that the modern inputs applied in Bahia cocoa production are profitable, but this profitability, approximately equal to 24 per cent, could be increased more rapidly than that for other inputs, given the behavior of the prices of modern inputs, given the orientation of agricultural research, and given that the elasticity of the marginal rate of return on investment for modern inputs is more sensitive to variations in the price of cocoa than is that for the other resources. The marginal rate of return for land in cocoa production was estimated at 94.4 per cent, for miscellaneous expenditure, 7.2 per cent; for flow for services of improvements, livestock and equipment, 21.9 per cent; for manual labor, the estimated rate for return was 89.9 per cent and for the modern inputs, 23.6 per cent. The marginal net return on working capital indicates that for the next cruzeiro invested in land in cocoa production, there is a gain of Cr 1.11; for miscellaneous expenditures, Cr 0.08; for buildings, livestock and equipment, Cr 0.26; for manual labor Cr 0.98, and for modern inputs, Cr 0.25 |
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