Sri Lanka is the world leader in made tea production and the small holding sector dominates national production by accounting for 60% of the island's tea production. However, given the high cost of production, there is a belief that it is very difficult to increase profitability without increasing costly inputs such as labour. With this background, in this study technical efficiency of the tea small holdings sector in the Mid Country Wet Zone of Sri Lanka was estimated in order to identify the potential to increase production without incurring any additional costs for inputs. The sources of inefficiency and the robustness of measured technical efficiency in various functional specifications was also investigated. The primary data collected during the period September - January 2001 relevant to sixty small holder tea producers in the Mid-country Wet Zone was used for the study. Maximum likelihood estimates of the stochastic frontier model were estimated for green leaf yield as a function of land extent, family labour, hired labour, fertilizer, chemicals, and dolomite, using Cobb- Douglas and translog models. The determinants of technical efficiency such as age of farmer, experience, education, occupation type of crop (VP/Seedling) and type of clone were investigated, following the Battese and Coelli (1995) specification. According to the Cobb-Douglas specification, extent of land, family labour, hired labour, fertilizer and dolomite showed significant effects on yield. The coefficients for land, family labour, hired labour and fertilizer had positive values of 1.11, 0.027, 0.067 0.029 and 0.004 respectively. The mean technical efficiency of the tea small holdings sector in the Mid Country Wet Zone was found to be 64.60 per cent. The result for the inefficiency model indicates that age of farmer, education, occupation, type of crop (VP or seedling) and type of clone have significant effects on efficiency. The coefficients for age, education, occupation and type of crop showed negative values. However contrary to expectations, type of clone and experience showed positive values. The estimation with the translog model yielded different technical efficiencies, which indicates the fact that technical efficiency estimations are highly sensitive to the functional form specified. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3488 SJAE 2002; 4(1): 137-150
{"title":"Estimation of Technical Efficiency and It's Determinants in the Tea Small Holding Sector in the Mid Country Wet Zone of Sri Lanka","authors":"B. Basnayake, L. Gunaratne","doi":"10.4038/SJAE.V4I0.3488","DOIUrl":"https://doi.org/10.4038/SJAE.V4I0.3488","url":null,"abstract":"Sri Lanka is the world leader in made tea production and the small holding sector dominates national production by accounting for 60% of the island's tea production. However, given the high cost of production, there is a belief that it is very difficult to increase profitability without increasing costly inputs such as labour. With this background, in this study technical efficiency of the tea small holdings sector in the Mid Country Wet Zone of Sri Lanka was estimated in order to identify the potential to increase production without incurring any additional costs for inputs. The sources of inefficiency and the robustness of measured technical efficiency in various functional specifications was also investigated. The primary data collected during the period September - January 2001 relevant to sixty small holder tea producers in the Mid-country Wet Zone was used for the study. Maximum likelihood estimates of the stochastic frontier model were estimated for green leaf yield as a function of land extent, family labour, hired labour, fertilizer, chemicals, and dolomite, using Cobb- Douglas and translog models. The determinants of technical efficiency such as age of farmer, experience, education, occupation type of crop (VP/Seedling) and type of clone were investigated, following the Battese and Coelli (1995) specification. According to the Cobb-Douglas specification, extent of land, family labour, hired labour, fertilizer and dolomite showed significant effects on yield. The coefficients for land, family labour, hired labour and fertilizer had positive values of 1.11, 0.027, 0.067 0.029 and 0.004 respectively. The mean technical efficiency of the tea small holdings sector in the Mid Country Wet Zone was found to be 64.60 per cent. The result for the inefficiency model indicates that age of farmer, education, occupation, type of crop (VP or seedling) and type of clone have significant effects on efficiency. The coefficients for age, education, occupation and type of crop showed negative values. However contrary to expectations, type of clone and experience showed positive values. The estimation with the translog model yielded different technical efficiencies, which indicates the fact that technical efficiency estimations are highly sensitive to the functional form specified. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3488 SJAE 2002; 4(1): 137-150","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129223169","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Even though the strategy and resource-based views separately argue that superior performance is influenced by strategies and resources of firms, this study argues that there can be an indirect relationship between the core resources and strategies of firms. The strength of this relationship was examined based on a set of data gathered from a group of value-added tea producers in Sri Lanka. The cannonical analysis revealed a significant relationship between strategy and resource patterns; however, resource patterns explained only 21 per cent of the variance of the strategy patterns. This indicated that the Sri Lankan value-added tea producing firms' choice of, and ability to perform a particular strategy are weakly associated with their core resource strength.
{"title":"The Relationship between Core Resources and Strategies of Firms: The Case of Sri Lankan Value-Added Tea Producers","authors":"A. Ariyawardana, W. C. Bailey","doi":"10.4038/SJAE.V4I0.3481","DOIUrl":"https://doi.org/10.4038/SJAE.V4I0.3481","url":null,"abstract":"Even though the strategy and resource-based views separately argue that superior performance is influenced by strategies and resources of firms, this study argues that there can be an indirect relationship between the core resources and strategies of firms. The strength of this relationship was examined based on a set of data gathered from a group of value-added tea producers in Sri Lanka. The cannonical analysis revealed a significant relationship between strategy and resource patterns; however, resource patterns explained only 21 per cent of the variance of the strategy patterns. This indicated that the Sri Lankan value-added tea producing firms' choice of, and ability to perform a particular strategy are weakly associated with their core resource strength.","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123040845","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Human Development of South Asia 2002 Report is of special interest to agricultural economists as it more or less redefines the role of agriculture in development. It argues the case for continued development of agriculture as the only means by which poverty and human degradation could be reduced. The message of the Report is strong and clear. "high levels of human development cannot be achieved if development priorities do not focus on the occupation of the people - both farm and non farm ‐ and where they live rural areas." The significance of the Human Development of South Asia 2002 Report is that it focuses on agricultural and rural development as the means by which human development could be achieved in South Asia. It analyses the reasons for the persistence of poverty, poor human development indicators and the inability to raise the poor from their misery and comes to the conclusion that without agricultural and rural development the causes of poor human development indicators cannot be eradicated. It is strongly of the view that the economic development strategies adopted in recent decades by South Asian countries were unable to reduce poverty and household level food security owing to inadequate growth in agriculture. Although promoting economic growth and even increases in agricultural and food production, they were incapable of promoting the welfare of a sizeable proportion of the population. The report is of the view that poverty, hunger, malnutrition and the poor human development indicators that are largely a rural phenomenon cannot be resolved by mere overall economic growth, though overall growth is indeed vital. It argues for a new thrust in agricultural development that alone can address these issues. This thrust requires more resources into research, an effective linkage in research and extension and more effective marketing channels for agricultural produce. In other words it argues for a much stronger institutional support for agriculture. what has to be done in Sri
{"title":"The Importance of Agriculture for Development: A Review Article on the Role of Agriculture in Economic and Social Development Based on the Human Development of South Asia Report 2002","authors":"N. Sanderatne","doi":"10.4038/SJAE.V5I0.3480","DOIUrl":"https://doi.org/10.4038/SJAE.V5I0.3480","url":null,"abstract":"The Human Development of South Asia 2002 Report is of special interest to agricultural economists as it more or less redefines the role of agriculture in development. It argues the case for continued development of agriculture as the only means by which poverty and human degradation could be reduced. The message of the Report is strong and clear. \"high levels of human development cannot be achieved if development priorities do not focus on the occupation of the people - both farm and non farm ‐ and where they live rural areas.\" The significance of the Human Development of South Asia 2002 Report is that it focuses on agricultural and rural development as the means by which human development could be achieved in South Asia. It analyses the reasons for the persistence of poverty, poor human development indicators and the inability to raise the poor from their misery and comes to the conclusion that without agricultural and rural development the causes of poor human development indicators cannot be eradicated. It is strongly of the view that the economic development strategies adopted in recent decades by South Asian countries were unable to reduce poverty and household level food security owing to inadequate growth in agriculture. Although promoting economic growth and even increases in agricultural and food production, they were incapable of promoting the welfare of a sizeable proportion of the population. The report is of the view that poverty, hunger, malnutrition and the poor human development indicators that are largely a rural phenomenon cannot be resolved by mere overall economic growth, though overall growth is indeed vital. It argues for a new thrust in agricultural development that alone can address these issues. This thrust requires more resources into research, an effective linkage in research and extension and more effective marketing channels for agricultural produce. In other words it argues for a much stronger institutional support for agriculture. what has to be done in Sri","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123119761","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Dkng Pushpakumara, Hb Kotagama, B. Marambe, G. Gamage, Kaid Silva, Lhp Gunaratne, C. Wijesundara, Ssdk Karaluvinne
Identifying mechanisms to finance environmental conservation is crucial to achieve sustainable development. Pharmaceutical prospecting has been touted as a mechanism with prospects to generate revenue to conserve biodiversity. Pharmaceutical prospecting could improve with the use of prior information to guide pharmaceutical prospecting research. Such prior information could be traditional knowledge on use of biodiversity for medicinal purposes. Sri Lanka is richly bestowed with both biodiversity and traditional knowledge of the use of it for medicinal purposes. This paper, through review of the literature and empirical estimation of the willingness to pay for pharmaceutical prospecting, has estimated the complementary value of biodiversity and traditional knowledge of its use, in Sri Lanka. The Knuckles forest has been used as the demonstrative case for analysis. It is found that pharmaceutical prospecting has reasonable potential to generate revenue to conserve biodiversity in Sri Lanka. Thus, it is recommended that legislations, institutions and mechanisms, which are required to establish property rights on biodiversity and traditional knowledge, be expeditiously established to facilitate pharmaceutical prospecting. Given the social and political sensitivity of pharmaceutical prospecting, broad public consultation should be sought, prior to implementation of pharmaceutical prospecting. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3483 SJAE 2002; 4(1): 39-71
{"title":"Prospects of Pharmaceutical Prospecting to Finance Biodiversity Conservation in Sri Lanka","authors":"Dkng Pushpakumara, Hb Kotagama, B. Marambe, G. Gamage, Kaid Silva, Lhp Gunaratne, C. Wijesundara, Ssdk Karaluvinne","doi":"10.4038/SJAE.V4I0.3483","DOIUrl":"https://doi.org/10.4038/SJAE.V4I0.3483","url":null,"abstract":"Identifying mechanisms to finance environmental conservation is crucial to achieve sustainable development. Pharmaceutical prospecting has been touted as a mechanism with prospects to generate revenue to conserve biodiversity. Pharmaceutical prospecting could improve with the use of prior information to guide pharmaceutical prospecting research. Such prior information could be traditional knowledge on use of biodiversity for medicinal purposes. Sri Lanka is richly bestowed with both biodiversity and traditional knowledge of the use of it for medicinal purposes. This paper, through review of the literature and empirical estimation of the willingness to pay for pharmaceutical prospecting, has estimated the complementary value of biodiversity and traditional knowledge of its use, in Sri Lanka. The Knuckles forest has been used as the demonstrative case for analysis. It is found that pharmaceutical prospecting has reasonable potential to generate revenue to conserve biodiversity in Sri Lanka. Thus, it is recommended that legislations, institutions and mechanisms, which are required to establish property rights on biodiversity and traditional knowledge, be expeditiously established to facilitate pharmaceutical prospecting. Given the social and political sensitivity of pharmaceutical prospecting, broad public consultation should be sought, prior to implementation of pharmaceutical prospecting. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3483 SJAE 2002; 4(1): 39-71","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130180418","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper estimates price and food expenditure elasticities of demand for twelve food groups in Tanzania by applying the linearized Almost Ideal Demand system to the latest household survey data. In estimation, particular attention is paid to the presence of zero expenditure and the effects of demographic characteristics on food demand patterns. The results indicate that maize, rice, other cereals, pulses, sugar, edible oils, fish, starch, fruits and vegetables, meat, and other foods are price inelastic while milk and dairy products have unitary elasticity of demand. Most of the food groups are income elastic. The results also reveal that household income and family size have significant effects on food demand patterns. Main policy implications of the results include inter alia (a) income oriented policies will have a greater effect on promoting food consumption than price related policies, (2) a significant price decline associated with increased production of maize and rice will benefit a majority of households since the two commodities have high budget shares and low own-price elasticities of demand, and (3) meat was found to be inelastic with respect to the expenditure on food.
{"title":"Food Demand Patterns in Tanzania: A Censored Regression Analysis of Microdata","authors":"A. Weliwita, D. Nyange, H. Tsujii","doi":"10.4038/SJAE.V5I0.3474","DOIUrl":"https://doi.org/10.4038/SJAE.V5I0.3474","url":null,"abstract":"This paper estimates price and food expenditure elasticities of demand for twelve food groups in Tanzania by applying the linearized Almost Ideal Demand system to the latest household survey data. In estimation, particular attention is paid to the presence of zero expenditure and the effects of demographic characteristics on food demand patterns. The results indicate that maize, rice, other cereals, pulses, sugar, edible oils, fish, starch, fruits and vegetables, meat, and other foods are price inelastic while milk and dairy products have unitary elasticity of demand. Most of the food groups are income elastic. The results also reveal that household income and family size have significant effects on food demand patterns. Main policy implications of the results include inter alia (a) income oriented policies will have a greater effect on promoting food consumption than price related policies, (2) a significant price decline associated with increased production of maize and rice will benefit a majority of households since the two commodities have high budget shares and low own-price elasticities of demand, and (3) meat was found to be inelastic with respect to the expenditure on food.","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116772122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the impact of trade intervention policies. The trade protection for the rice sector was estimated using both nominal and effective protection rates. These show positive protection to producers at the expense of consumers. Current analysis indicates that one rupee of resources is used to produce 56 cents worth of rice valued in foreign exchange. As trade is increasingly liberalised, protection will be eventually eliminated and rice farmers will be forced to produce rice at competitive prices. Consequently, the extent under rice is expected to decrease by 12 per cent and total production decreases by 16 per cent. Meanwhile demand for rice will increase as a result of the reduction in retail price. Overall welfare impacts reveal that it is a gain to the nation. However, the producers face welfare losses. Therefore concerted and simultaneous efforts are imperative to improve productivity growth and reduce the unit cost of production in order to improve the competitiveness of the rice sector so that it can compete with the rest of the world.
{"title":"Trade Liberalisation and its Impact on the Rice Sector of Sri Lanka","authors":"M. Rafeek, P. Samaratunga","doi":"10.4038/SJAE.V3I0.3494","DOIUrl":"https://doi.org/10.4038/SJAE.V3I0.3494","url":null,"abstract":"This paper examines the impact of trade intervention policies. The trade protection for the rice sector was estimated using both nominal and effective protection rates. These show positive protection to producers at the expense of consumers. Current analysis indicates that one rupee of resources is used to produce 56 cents worth of rice valued in foreign exchange. As trade is increasingly liberalised, protection will be eventually eliminated and rice farmers will be forced to produce rice at competitive prices. Consequently, the extent under rice is expected to decrease by 12 per cent and total production decreases by 16 per cent. Meanwhile demand for rice will increase as a result of the reduction in retail price. Overall welfare impacts reveal that it is a gain to the nation. However, the producers face welfare losses. Therefore concerted and simultaneous efforts are imperative to improve productivity growth and reduce the unit cost of production in order to improve the competitiveness of the rice sector so that it can compete with the rest of the world.","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125049704","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
B. Olsson, P. Birungi, S. Huda, G. Motlaleng, J. Onjala, T. Sterner
Environmental policies to deal with global problems like climate change must be global and some form of environmental valuation at the international level would be a very useful input into decision making. However, such a valuation is likely to be so difficult that we need to consider whether it is possible at all. The purpose of this paper was to investigate how people in different socioeconomic settings and different countries view and value a number of environmental issues. We set out to see how people in widely different settings would rank different “environmental problems”. The study was performed simultaneously in countries from four continents; Botswana, Brazil, Kenya, South Africa, Sri Lanka, Sweden and Uganda. The sample of countries varies by income, population growth, social indicators such as literacy and environmental resources. We found that most of the respondents were reasonably aware of environmental issues and there is a similar group of issues that dominates the environmental agenda in practically all the countries. There is for instance agreement on the fact that water and air pollution as well as waste management are important issues. Issues such as climate change, forest loss and the spread of toxic substances were also considered important in practically all countries. The results have proven to be reasonably in line with what might be expected. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3484 SJAE 2002; 4(1): 73-93
{"title":"Ranking Environmental Services in Different Countries","authors":"B. Olsson, P. Birungi, S. Huda, G. Motlaleng, J. Onjala, T. Sterner","doi":"10.4038/SJAE.V4I0.3484","DOIUrl":"https://doi.org/10.4038/SJAE.V4I0.3484","url":null,"abstract":"Environmental policies to deal with global problems like climate change must be global and some form of environmental valuation at the international level would be a very useful input into decision making. However, such a valuation is likely to be so difficult that we need to consider whether it is possible at all. The purpose of this paper was to investigate how people in different socioeconomic settings and different countries view and value a number of environmental issues. We set out to see how people in widely different settings would rank different “environmental problems”. The study was performed simultaneously in countries from four continents; Botswana, Brazil, Kenya, South Africa, Sri Lanka, Sweden and Uganda. The sample of countries varies by income, population growth, social indicators such as literacy and environmental resources. We found that most of the respondents were reasonably aware of environmental issues and there is a similar group of issues that dominates the environmental agenda in practically all the countries. There is for instance agreement on the fact that water and air pollution as well as waste management are important issues. Issues such as climate change, forest loss and the spread of toxic substances were also considered important in practically all countries. The results have proven to be reasonably in line with what might be expected. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3484 SJAE 2002; 4(1): 73-93","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"6 4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132566753","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Organic products are considered to be superior in quality compared to conventionally produced products, since it has been proved that organic products help prevent several health hazards. Therefore, demand for organic products are increasing all over the world, as well as in Sri Lanka. Given this increasing demand for organic products, this study was conducted with a view to identifing the market potentials for organic products and consumer expectations in Kandy. Further, it identifies the factors that influence the additional willingness to pay for organic vegetables. The research was conducted in three supermarkets, namely, Cargills, Dhanasiri and Royal Garden Mall. Thirty respondents were randomly selected from each of the supermarkets. Results reveal that most of the consumers are aware of organic products and this awareness has influenced their consumption of organic products in the past. Further, a majority of the consumers considered price as an important factor for their organic product consumption and have attached a higher importance for certification from a reputed organization. Consumers also indicated that organic products should be sold in easily accessible shops for the convenience of purchasing. Results of the regression analysis revealed that of the socio-demographic factors, income, environmental education and years of education significantly influence the willingness to pay for organic vegetables. Based on the study it could be concluded that consumer awareness effectively advances the demand for organic products and there is a high potential to introduce organic products to the supermarkets in Kandy. Therefore, along with introducing organic products, marketers should also direct proper awareness programs among consumers in promoting the demand for organic products. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3486 SJAE 2002; 4(1): 107-119
{"title":"Market Potentials and Willingness to Pay for Selected Organic Vegetables in Kandy","authors":"A.G.S.A. Piyasiri, A. Ariyawardana","doi":"10.4038/SJAE.V4I0.3486","DOIUrl":"https://doi.org/10.4038/SJAE.V4I0.3486","url":null,"abstract":"Organic products are considered to be superior in quality compared to conventionally produced products, since it has been proved that organic products help prevent several health hazards. Therefore, demand for organic products are increasing all over the world, as well as in Sri Lanka. Given this increasing demand for organic products, this study was conducted with a view to identifing the market potentials for organic products and consumer expectations in Kandy. Further, it identifies the factors that influence the additional willingness to pay for organic vegetables. The research was conducted in three supermarkets, namely, Cargills, Dhanasiri and Royal Garden Mall. Thirty respondents were randomly selected from each of the supermarkets. Results reveal that most of the consumers are aware of organic products and this awareness has influenced their consumption of organic products in the past. Further, a majority of the consumers considered price as an important factor for their organic product consumption and have attached a higher importance for certification from a reputed organization. Consumers also indicated that organic products should be sold in easily accessible shops for the convenience of purchasing. Results of the regression analysis revealed that of the socio-demographic factors, income, environmental education and years of education significantly influence the willingness to pay for organic vegetables. Based on the study it could be concluded that consumer awareness effectively advances the demand for organic products and there is a high potential to introduce organic products to the supermarkets in Kandy. Therefore, along with introducing organic products, marketers should also direct proper awareness programs among consumers in promoting the demand for organic products. DOI: http://dx.doi.org/10.4038/sjae.v4i0.3486 SJAE 2002; 4(1): 107-119","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"68 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133255179","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Nutritional label plays an important role in providing the relevant nutrition information to consumers. Inclusion of a nutritional label on food items may be an important packaging decision for the Sri Lankan food processors. Hence, a study was conducted with a view of identifying the market for nutritional labeling and the factors that influence the consumer willingness-to-pay for nutritional labeling. Data were collected from a random sample of 90 consumers selected from three supermarkets - Dhanasiri, Cargill’s Food City and Royal Garden Mall - located in Kandy. Market for nutritional labeling were identified by exploring data and a logit method of analysis was performed to identify the factors that influence the willingness-to-pay for nutritional information on food items. A significantly greater proportion of individuals in the age category 36 to 50 years, individuals with tertiary education, individuals with special dietary status and households with less than four members were willing to pay more for the nutritional labels. Logit analysis showed that gender, level of education and special dietary status have a significant positive effect and the household size has a significant negative effect on the willingness to pay for nutrition information. Accordingly, it could be stated that incorporation of a nutritional panel in the package would enhance the demand for food products and it would be an appropriate strategic task for the local food processors. DOI: http://dx.doi.org/10.4038/sjae.v5i0.3475 SJAE 2003; 5(1): 35-46
{"title":"Impact of Nutritional Labeling on Consumer Buying Behavior","authors":"P.H.K. Prathiraja, A. Ariyawardana","doi":"10.4038/SJAE.V5I0.3475","DOIUrl":"https://doi.org/10.4038/SJAE.V5I0.3475","url":null,"abstract":"Nutritional label plays an important role in providing the relevant nutrition information to consumers. Inclusion of a nutritional label on food items may be an important packaging decision for the Sri Lankan food processors. Hence, a study was conducted with a view of identifying the market for nutritional labeling and the factors that influence the consumer willingness-to-pay for nutritional labeling. Data were collected from a random sample of 90 consumers selected from three supermarkets - Dhanasiri, Cargill’s Food City and Royal Garden Mall - located in Kandy. Market for nutritional labeling were identified by exploring data and a logit method of analysis was performed to identify the factors that influence the willingness-to-pay for nutritional information on food items. A significantly greater proportion of individuals in the age category 36 to 50 years, individuals with tertiary education, individuals with special dietary status and households with less than four members were willing to pay more for the nutritional labels. Logit analysis showed that gender, level of education and special dietary status have a significant positive effect and the household size has a significant negative effect on the willingness to pay for nutrition information. Accordingly, it could be stated that incorporation of a nutritional panel in the package would enhance the demand for food products and it would be an appropriate strategic task for the local food processors. DOI: http://dx.doi.org/10.4038/sjae.v5i0.3475 SJAE 2003; 5(1): 35-46","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116744684","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The forest cover of the country has declined significantly and the remaining natural forests provide valuable environmental services. Since logging reduces the supply of environmental services, alternative sources of timber play an important role in sustainable management of forestlands. Forest plantations are alternatives to logging natural forests for timber and other wood products. The objective of this study is to examine the financial and economic feasibility of selected forest plantation species. According to the study, at a 10% discount rate, Mahogany, Teak, Jak and Eucalyptus result in positive financial NPVs. At higher discount rates, all considered species result in negative financial NPVs. Teak provides the highest financial NPV. In a social context, when environmental services are incorporated, Mahogany, Teak, Jak, Eucalyptus and Pine yield higher economic NPVs at 6% social discount rate. This shows that there is a divergence between financial and economic returns to forest plantations. Therefore, government interventions are necessary to get the private sector involved in plantation forestry.
{"title":"An Assessment of Financial and Economic Feasibility of Selected Forest Plantation Species","authors":"G. Pitigala, H. Gunatilake","doi":"10.4038/SJAE.V4I0.3487","DOIUrl":"https://doi.org/10.4038/SJAE.V4I0.3487","url":null,"abstract":"The forest cover of the country has declined significantly and the remaining natural forests provide valuable environmental services. Since logging reduces the supply of environmental services, alternative sources of timber play an important role in sustainable management of forestlands. Forest plantations are alternatives to logging natural forests for timber and other wood products. The objective of this study is to examine the financial and economic feasibility of selected forest plantation species. According to the study, at a 10% discount rate, Mahogany, Teak, Jak and Eucalyptus result in positive financial NPVs. At higher discount rates, all considered species result in negative financial NPVs. Teak provides the highest financial NPV. In a social context, when environmental services are incorporated, Mahogany, Teak, Jak, Eucalyptus and Pine yield higher economic NPVs at 6% social discount rate. This shows that there is a divergence between financial and economic returns to forest plantations. Therefore, government interventions are necessary to get the private sector involved in plantation forestry.","PeriodicalId":318491,"journal":{"name":"Sri Lankan Journal of Agricultural Economics","volume":"354 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125639368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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