Technical Efficiency of Lettuce Production using Hydroponic Systems in Selected Municipalities of Cavite, 2024

Eugene N. Morales, College of Economics and Management, University of the Philippines Los Baños

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Abstract

The study was conducted to primarily analyze the technical efficiency of hydroponic lettuce production in selected municipalities in Cavite. Specifically, the study aimed to (1) describe the hydroponic lettuce farmers in terms of their socio-economic characteristics, (2) determine the level of technical efficiency of hydroponic lettuce farmers, (3) identify the factors affecting technical efficiency in hydroponic lettuce production, and (4) draw policy implications and provide recommendations for improvement. Thirty hydroponic lettuce farmers were interviewed using a pre-tested questionnaire. Tables, graphs, frequency distributions, mean and summations, standard deviation, and range were used for the descriptive analysis. On the other hand, Stochastic Frontier Analysis (SFA) was used to determine the technical efficiency.

The stochastic production frontier revealed that the mean efficiency of the farmers was 59.71 percent. Seeds, nitrogen, potassium, labor, water usage, and NFT use positively affected output. Pesticide use on the other hand negatively affected output. Phosphorus did not significantly affect output. In the inefficiency model, the factors that positively affected technical inefficiency were sex, tenurial status, organizational affiliation, and credit access, but these were not significant. Household size, farming experience, and seminar attendance all negatively affected technical inefficiency. Lastly, the following negatively affected technical inefficiency but were not significant: age and educational attainment.

To improve technical efficiency, the following recommendations are suggested: (1) conduct training and seminars for technical and crucial information regarding proper hydroponic lettuce production technic, along with follow-up monitoring, and (2) provision and proper use of fertilizer and insecticide.