Profitability, Productivity and the Efficiency of Grain Production with Climate Impacts: A Case Study of Western Australia

41 Pages Posted: 6 Jul 2012 Last revised: 9 Jul 2012

See all articles by Nhu Che

Nhu Che

Australian National University (ANU) - Crawford School of Public Policy

Tom Kompas

University of Melbourne

Vilaphonh Xayavong

Massey University - Massey Business School

David Cook

affiliation not provided to SSRN

Date Written: July 1, 2012

Abstract

This paper analyses productivity, profitability and efficiency by climate zone for the WA grains industry over the past 30 years. More specifically, following the studies by the Department of Agriculture and Food of Western Australia (2011) and Che, et.al (2012), this paper uses the Törnqvist formula index to measure and analyse movements in inputs, outputs, climate conditions, Total Factor Productivity (TFP), and TFP adjusted by climate impacts for WA grains farms in six climate zones over the period 1980 to 2009-10.

Estimates provide a stochastic production frontier and technical efficiency model for six rainfall zones (including the High Rainfall North and South zones; the Medium Rainfall North and South zones and Low Rainfall North and South zones), which determine the relative importance of land, labour, capital, materials, fuel and energy inputs into wheat production and the effects of climate zone on farm efficiency. A construction of overall farm profiles in Medium Rainfall zones based on the efficiency rankings of grain farms is also generated.

Keywords: productivity, profitability, Western Australia, efficiency, climate impacts, grain production

Suggested Citation

Che, Nhu and Kompas, Tom and Xayavong, Vilaphonh and Cook, David, Profitability, Productivity and the Efficiency of Grain Production with Climate Impacts: A Case Study of Western Australia (July 1, 2012). Crawford School Research Paper No. # 12-08, Available at SSRN: https://ssrn.com/abstract=2095774 or http://dx.doi.org/10.2139/ssrn.2095774

Nhu Che (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Tom Kompas

University of Melbourne ( email )

Parkville, Victoria
Melbourne, Victoria 3010
Australia

Vilaphonh Xayavong

Massey University - Massey Business School ( email )

New Zealand

David Cook

affiliation not provided to SSRN

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