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Agriculture 2016, 6(2), 21; doi:10.3390/agriculture6020021

Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh

1
School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth PL4 8AA, UK
2
Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh
3
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
4
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
These authors contributed equally to this work.
*
Author to whom correspondence should be addressed.
Academic Editor: Les Copeland
Received: 4 December 2015 / Revised: 6 May 2016 / Accepted: 16 May 2016 / Published: 23 May 2016
(This article belongs to the Special Issue Agriculture and Rural Development)
View Full-Text   |   Download PDF [240 KB, uploaded 23 May 2016]

Abstract

The study assesses international competitiveness, profitability, output supply and input demand of maize production using a farm survey data of 165 farmers from two major maize growing areas (i.e., Dinajpur and Lalmonirhat districts) of northwestern Bangladesh. Results revealed that maize production is globally competitive and, therefore, can successfully substitute its import. Maize production is also profitable at the farm level (Benefit Cost Ratio = 1.21) with no adverse influence of farm size on yield and profitability. Maize farmers are also responsive to changes in market prices of inputs and outputs. A 1% increase in maize price will increase output supply by 0.4%. The most dominant driver of maize supply and other input demands is land. A 1% increase in available land will increase maize supply by a substantial 3.9%. In addition, landless laborers will benefit through an increase in hired labor demand when land area increases. Policy implications include investments in R&D, tenurial reform to consolidate land holding and smooth functioning of the hired labor market in order to increase maize production and profitability in Bangladesh. View Full-Text
Keywords: competitiveness; Policy Analysis Matrix (PAM) analysis; profitability; output supply; input demand; translog profit function; maize; Bangladesh competitiveness; Policy Analysis Matrix (PAM) analysis; profitability; output supply; input demand; translog profit function; maize; Bangladesh
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Rahman, S.; Kazal, M.M.H.; Begum, I.A.; Alam, M.J. Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh. Agriculture 2016, 6, 21.

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