The Analyses of Efficiency and Factors Affecting Efficiency of Agricultural Cooperatives in Lower Northern Region of Thailand

Abstract

Agricultural cooperative has been a crucial community business for Thais in the rural area of Thailand over 100 years. It is important to analyses of efficiency and factors affecting efficiency. The research objectives were to (1) analyze the efficiency of agricultural cooperatives in the lower-northern area of Thailand utilized by the Data Environment Analysis Model (DEA Model) and (2) study the factors affecting the efficiency and operational development of agricultural cooperatives in the lower-northern area of Thailand. The research population comprised of agricultural cooperatives which identified as the general agricultural cooperatives. The study area covered nine provinces comprise of 196 cooperatives. The secondary data were collected from Financial Information Data Base of the Department of Cooperative Auditing, Ministry of Agriculture and Cooperatives. The data were analyzed by using Data Environment Analysis Model and Ordered Probit Model. The major findings were (1) the entire efficiency index of agricultural cooperatives in the lower-northern area of Thailand expressed at the medium score index of efficiency. The return to scale of agricultural cooperative operations in the lower-northern area of Thailand lighted on the Constant Return to Scale (CRS), Diminishing Return to Scale (DRS), as well as Increasing Return to Scale (IRS) of 15.31, 49.49, and 35.20, respectively. (2) Factors affecting the efficiency and operational development of agricultural cooperatives in the lower-northern area of Thailand expressed by value of total assets and value of credit business. According to the research results, it was suggested that the cooperative operations should be reached the maximum point of efficiency and it is necessary for cooperatives to make the operation cost management, the resources of co-operative operations which comprised of the entire co-operative assets. Moreover; the cooperatives should pay the crucial role on credit business management.