Factors influencing paddy producers’ profitability and sale to markets: evidence from Battambang Province, Cambodia

Figures & data

Figure 1. Map of the study area.

Table 1. Proportionate sampling of rice farm households

District	Commune	Paddy Farm Household Population	Share of population (%)	Sample Size	Share of sample (%)
Thmor Kol	Ta Pung	1921	11	27	11
	Ta Meun	2432	14	34	14
	Ou Ta Ki	2751	16	39	16
	Chrey	2185	13	31	13
	Anlong Run	644	4	9	4
	Chrouy Sdau	1453	8	20	8
	Boeng Pring	1241	7	17	7
	Koak Khmum	1617	9	23	9
	Bansay Traeng	1330	8	19	8
	Rung Chrey	1625	10	23	10
Total		17,200	100	242	100

Table 2. Description of the independent variables in quantitative analysis for volume of rice sale

Variable	Unit	Expected sign	References
Dependent variable
Volume of rice sale to markets	tonne/household
Independent variables
X1 = Gender of the household head	Dummy (1 if male, 0 if female)	±	Boniphace et al. (2014), Hailu (2016)
X2 = Age of household head	Household head’s age (years)	±	Moono (2015), Khanal and Maharjan (2014)
X3–5 = Education of household head (Base = Illiterate)			Ayalew (2015)
Primary school	Dummy (1 if yes, 0 otherwise)	+
Secondary school	Dummy (1 if yes, 0 otherwise)	+
High school	Dummy (1 if yes, 0 otherwise)	+
X6 = Farming experience of household head	Years	+	Endris et al. (2020)
X7 = Household size	Persons	±	Kassa et al. (2017), Kyaw et al. (2018)
X8 = Household labor engaged in rice farming	Persons	+	Lefebo et al. (2016)
X9 = Land cultivated under rice	ha	+	Gani and Hossain (2015)
X10 = Access to irrigation facilities	Dummy (1 if yes, 0 otherwise)	+	Khanal and Maharjan (2014)
X11–13 = Variety of rice			Eliste and Zorya (2015)
White rice	Dummy (1 if yes, 0 otherwise)	+
Jasmine rice	Dummy (1 if yes, 0 otherwise)	+
Fragrant rice	Dummy (1 if yes, 0 otherwise	+
X14 = Seed costs	1,000,000 KHR/ha	+	Khanal and Maharjan (2014)
X15 = Fertilizer costs	1,000,000 KHR/ha	+	Bolakhe et al. (2022), Rehman et al. (2019)
X16 = Household consumption	tonne	–	Balirwa and Waholi (2019)
X17 = Retained for seed recycling	tonne	–	Tolno et al. (2016)
X18 = Selling price	1,000,000 KHR/tonne	+	Workye et al. (2019)
X19 = Road condition	Dummy (1 if good, 0 otherwise)	+	Kyaw et al. (2018)
X20 = Distance to the market	km	–	Kyaw et al. (2018)
X21 = Transport unit cost	1,000,000 KHR/tonne	-	Nabay et al. (2020)
X22 = Access to market information	Dummy (1 if yes, 0 otherwise)	+	Kyaw et al. (2018)
X23 = Access to extension	Dummy (1 if yes, 0 otherwise)	+	Siziba et al. (2011)
X24 = Access to credit	Dummy (1 if yes, 0 otherwise)	+	Anthony et al. (2021)

Note: USD 1 = approx. KHR 4050 at the time of the survey.

Table 3. Description of the dependent and independent variables in quantitative analysis for profitability of rice farming

Variable	Unit	Expected sign	References
Dependent variable
Profitability of rice production	1,000,000 KHR/ha
Independent variables
X1 = Gender of the household head	Dummy (1 if male, 0 if female)	±	Fakkhong and Suwanmaneepong (2016), Kebede et al. (2017), and Shrestha et al. (2022)
X2 = Age of household head	Household head’s age (years)	±	Onoja (2012), Patterson-Andrews and Pemberton (2014)
X3–5 = Education of household head (Base = Illiterate)			Modeste et al. (2018)
Primary school	Dummy (1 if yes, 0 otherwise)	+
Secondary school	Dummy (1 if yes, 0 otherwise)	+
High school	Dummy (1 if yes, 0 otherwise)	+
X6 = Farming experience of head household	Years	+	Tu et al. (2018), Modeste et al. (2018)
X7 = Household size	Persons	±	Centes et al. (2017), Rugube et al. (2019)
X8 = Household labor engaged in rice farming	Persons	+	Patterson-Andrews and Pemberton (2014)
X9 = Land cultivated under rice	ha	+	Mwatawala et al. (2019)
X10 = Access to irrigation facilities	Dummy (1 if yes, 0 otherwise)	+	Srean et al. (2018)
X11–13 = Variety of rice			Kebede et al. (2017), Bunthan et al. (2018)
White rice	Dummy (1 if yes, 0 otherwise)	+
Jasmine rice	Dummy (1 if yes, 0 otherwise)	+
Fragrant rice	Dummy (1 if yes, 0 otherwise	+
X14 = Seed costs	1,000,000 KHR/ha	–	Okam et al. (2016)
X15 = Fertilizer costs	1,000,000 KHR/ha	–	Okam et al. (2016)
X16 = Household consumption	tonne	–	Tolno et al. (2016)
X17 = Retained for seed recycling	tonne	–	Srean et al. (2018)
X18 = Selling price	1,000,000 KHR/tonne	+	Tumukunde et al. (2020)
X19 = Road condition	Dummy (1 if good, 0 otherwise)	+	Mdoda and Obi (2019)
X20 = Distance to the market	km	–	Shrestha et al. (2022)
X21 = Transport unit cost	1,000,000 KHR/tonne	–	Tumukunde et al. (2020)
X22 = Access to market information	Dummy (1 if yes, 0 otherwise)	+	Mwatawala et al. (2019)
X23 = Access to extension	Dummy (1 if yes, 0 otherwise)	+	Shrestha et al. (2022)
X24 = Access to credit	Dummy (1 if yes, 0 otherwise)	+	Shrestha et al. (2022)

Note: USD 1 = approx. KHR 4050 KHR at the time of the survey.

Table 4. Variance inflation factor (VIF) for the set of covariates included in both of the regression analyses

Variable	VIF
Gender of household head (1 if male, 0 if female) (x1)	1.150
Age of household head (years) (x2)	3.658
Education of household head (x3–5) (base = illiterate)
Primary school (1 if completed, 0 otherwise)	1.850
Secondary school (1 if completed, 0 otherwise)	1.750
High school (1 if completed, 0 otherwise)	1.366
Farming experience of household head (years) (x6)	3.699
Household size (persons) (x7)	1.263
Household labor engaged in rice farming (persons) (x8)	1.326
Land cultivated under rice (ha) (x9)	1.882
Access to irrigation facility (1 if yes, 0 otherwise) (x10)	3.961
Variety of rice (x11–13)
White rice (1 if yes, 0 otherwise)	3.374
Jasmine rice (1 if yes, 0 otherwise)	3.612
Fragrant rice (1 if yes, 0 otherwise)	4.313
Seed cost (1,000,000 KHR/ha) (x14)	1.128
Fertilizer cost (1,000,000 KHR/ha) (x15)	1.188
Household own consumption (tonne) (x16)	1.348
Retained for seed recycling (tonne) (x17)	1.860
Selling price (1,000,000 KHR/tonne) (x18)	1.559
Road condition (1 if good, 0 otherwise) (x19)	1.162
Distance to nearest market (km) (x20)	1.184
Transport unit cost (1,000,000 KHR/tonne) (x21)	1.138
Access to market information (1 if yes, 0 otherwise) (x22)	1.089
Access to extension (1 if yes, 0 otherwise) (x23)	1.075
Access to credit (1 if yes, 0 otherwise) (x24)	1.099

Note: USD 1 = approx. KHR 4050 KHR at the time of the survey.

Figure 2. Distribution of farmers by landholding size in the study area.

Table 5. Distribution of landholding size in the study area

Item	Scale of Farming
	Small (< 2 ha)	Medium (≥ 2 ha and<5 ha)	Large (≥ 5 ha)
Average	0.93	2.89	9.39
Std. Dev.	0.38	0.72	7.19
Median	1.0	3.0	7.0
Min.	0.2	2.0	5.0
Max.	2.0	4.1	50.0
n	97	79	66
ANOVA-F	102.50
p-value	0.000

Table 6. Profile of the sampled rice farmers: distribution of socioeconomic variables by landholding category

Category	Small-scale farmers (n = 97)		Medium-scale farmers (n = 79)		Large-scale farmers (n = 66)		Chi-squared (χ^2)	p-value
	Number	%	Number	%	Number	%
Gender
Male	70	72.2	58	73.4	38	57.6	5.2	0.076
Female	27	27.8	21	26.6	28	42.4
Age of the respondent
<30	6	6.2	14	17.7	9	13.6	11.5	0.176
30–40	17	17.5	14	17.7	18	27.3
41–50	28	28.9	14	17.7	16	24.2
51–60	27	27.8	20	25.3	14	21.2
>60	19	19.6	17	21.5	9	13.6
Education of the respondent
Illiterate	21	21.6	16	20.3	10	15.2	5.2	0.523
Primary school	48	49.5	44	55.7	35	53.0
Secondary school	24	24.7	12	15.2	15	22.7
High school	4	4.1	7	8.9	6	9.1
Household size (persons)
1–2	10	10.3	5	6.3	3	4.5	26.9	0.000
3–4	58	59.8	39	49.4	20	30.3
5–6	24	24.7	28	35.4	26	39.4
>6	5	5.2	7	8.9	17	25.8
Number of household members engaged in rice farming
1–2	50	51.5	60	75.9	45	68.2	17.0	0.002
3–4	47	48.5	17	21.5	19	28.8
>4	0	0.0	2	2.5	2	3.0
Experience in rice farming (years)
<20	18	18.6	35	44.3	28	42.4	17.4	0.002
20–30	23	23.7	10	12.7	13	19.7
>30	56	57.7	34	43.0	25	37.9

Figure 3. Proportion of different uses of rice harvest in the study area.

Table 7. Quantity of production, sale, household consumption, and seed recycling (tonne)

Item	Harvest			Sale			Household consumption			Retained for seed recycling
	Small	Medium	Large	Small	Medium	Large	Small	Medium	Large	Small	Medium	Large
Average	5.70	10.72	27.18	4.57	8.96	23.98	0.85	1.18	1.70	0.30	0.59	1.51
Std. Dev.	3.20	5.17	23.51	2.88	5.12	23.28	0.57	0.73	1.25	0.22	0.40	0.90
Median	4.50	9.00	21.00	3.40	7.90	17.45	1.00	1.00	1.40	0.20	0.50	1.35
Min.	1.20	2.50	4.50	0.70	1.70	1.80	0.00	0.00	0.00	0.00	0.00	0.00
Max.	15.80	30.70	185.00	13.60	29.00	181.80	3.30	3.00	6.00	1.00	2.60	5.00
ANOVA-F	57.7			48.5			18.8			103.0
p-value	0.000			0.000			0.000			0.000

Table 8. Yield (tonne/ha) of three groups of rice farmers

Item	Small-scale farmers	Medium-scale farmers	Large-scale farmers
Average	3.82	3.50	3.20
Std. Dev.	0.64	0.58	0.61
Median	3.82	3.50	3.22
Min.	2.33	2.00	2.00
Max.	5.71	5.07	4.65
n	97	79	66
ANOVA-F	20.34
p-value	0.000

Table 9. Access to irrigation facilities, road condition, access to market, access to extension service, and access to credit

Binary variable (1 if yes, 0 if no)	Small-scale farmers (n = 97)		Medium-scale farmers (n = 79)		Large-scale farmers (n = 66)		p-value for χ^2
	Count of yes	%	Count of yes	%	Count of yes	%
Access to irrigation facilities	71	73.2	29	36.7	28	42.4	0.000
Good road condition	79	81.4	62	78.5	54	81.8	0.847
Access to market information	80	82.5	70	88.6	51	77.3	0.190
Access to extension	49	20.2	34	14.0	26	10.7	0.341
Access to credit	61	62.9	54	68.4	47	71.2	0.513
White rice	18	18.6	37	46.8	32	48.5	0.000
Jasmine rice	78	80.4	44	55.7	27	40.9	0.000
Fragrant rice	71	73.2	29	36.7	26	39.4	0.000

Table 10. Price and revenue of rice of three group farmers

Item	Price of rice (’000 KHR/tonne)			Revenue (’000 KHR/ha)
	Small	Medium	Large	Small	Medium	Large
Average	997	940	966	3,829	3,294	3,092
Std. Dev.	1,323	131	145	881	710	759
Median	1,025	950	1,000	4,014	3,376	3,007
Min.	600	630	600	1,620	1,800	1,200
Max.	1,400	1,300	1,400	5,775	5,093	4,709
ANOVA-F	3.88			19.23
p-Value	0.022			0.000

Note: USD 1 = approx. KHR 4050 at the time of the survey.

Table 11. Seed and fertilizer costs per area for three size groups of rice farmers

Item	Seed cost (’000 KHR/ha)			Fertilizer cost (’000 KHR/ha)
	Small	Medium	Large	Small	Medium	Large
Average	251	213	215	494	503	532
Std. Dev.	177	123	50	152	1998	96
Median	190	210	240	480	460	520
Min.	50	20	90	240	150	310
Max.	960	860	300	890	1,250	750
ANOVA-F	2.21			1.14
p-value	0.112			0.321

Note: USD 1 = approx. KHR 4050 at the time of the survey.

Table 12. Transportation cost and distance to market of three groups of rice farmers

Item	Transportation Cost (’000 KHR/tonne)			Distance to Market (km)
	Small	Medium	Large	Small	Medium	Large
Average	40.9	32.6	30.5	6.0	3.6	2.7
Std. Dev.	22.6	18.1	19.4	4.1	2.4	3.3
Median	40.0	30.0	25.0	5.0	3.0	1.0
Min.	10.0	10.0	6.0	0.5	0.5	0.4
Max.	100.0	82.0	95.0	20.0	15.0	15.0
ANOVA-F	6.27			21.29
p-value	0.020			0.000

Note: USD 1 = approx. KHR 4050 at the time of the survey.

Table 13. Profitability of rice production for three size groups of farmers

Item	Profitability per area (’000 KHR/ha)			Profitability per volume (KHR/kg)
	Small	Medium	Large	Small	Medium	Large
Average	2,104	1,710	1,312	539	480	396
Std. Dev.	854	791	717	191	185	172
Median	2,179	1,747	1,162	556	521	381
Min.	290	239	167	113	60	46
Max.	4,170	3,860	3,390	1,086	823	761
ANOVA-F	19.57			11.84
p-value	0.000			0.000

Note: USD 1 = approx. KHR 4050 at the time of the survey.

Table 14. Average cost and profit of paddy production per ha in Battambang Province

	Item	Whole sample (n = 242)	Small-scale farmers (n = 97)	Medium-scale farmers (n = 79)	Large-scale farmers (n = 66)
[A]	Variable costs
	Land preparation	148,998	167,908	129,641	144,375
	Seed	228,818	251,090	213,241	214,732
	Transplanting	30,199	30,673	29,019	30,838
	Fertilizer and pesticide	507,686	494,948	503,038	531,970
	Spraying	27,274	25,273	26,753	30,455
	Weeding	15,395	16,726	13,493	17,182
	Irrigation	27,918	30,820	23,756	27,303
	Harvesting	307,222	312,423	300,285	307,883
	Transportation	35,360	40,900	32,600	30,500
	Bag	17,500	26,800	17,500	21,000
	Total variable cost	1,346,370	1,397,561	1,289,325	1,356,237
[B]	Fixed costs
	Land rent	24,025	0	0	122,576
	Interest (12%)	303,685	307,230	290,835	300,051
	Total fixed cost	327,709	307,230	290,835	422,627
	Total cost (A+B)	1,674,079	1,704,791	1,580,160	1,778,864
	Yield (kg/ha)	3,545	3,820	3,500	3,200
	Paddy price (KHR/kg)	970	997	940	966
	Revenue per area (KHR/ha)	3,438,650	3,808,540	3,290,000	3,091,200
	Profitability (KHR/ha)	1,764,571	2,103,749	1,709,840	1,312,336
	Benefit-cost ratio	2.05	2.23	2.08	1.74

Note: USD 1 = approx. KHR 4050 at the time of the survey.

Figure 4. Frequency distribution of paddy sale.

Figure 5. Frequency distribution of natural logarithm of paddy sale.

Figure 6. Frequency distribution of profitability of paddy production.

Table 15. Log-linear ordinary least squares regression for volume of rice sale

Variable	Coeff.	Std. Err.	p-value
Gender of household head (1 if male, 0 if female) (x1)	−0.007	0.077	0.930
Age of household head (years) (x2)	−0.001	0.005	0.862
Education of household head (x3–5) (base = illiterate)
Primary school (1 if completed, 0 otherwise)	−0.012	0.091	0.898
Secondary school (1 if completed, 0 otherwise)	−0.099	0.108	0.359
High school (1 if completed, 0 otherwise)	0.298*	0.153	0.052
Farming experience of household head (years) (x6)	−0.004	0.005	0.512
Household size (persons) (x7)	0.040*	0.022	0.070
Household labor engaged in rice farming (persons) (x8)	−0.062	0.039	0.115
Land cultivated under rice (ha) (x9)	0.084***	0.009	0.000
Access to irrigation facility (1 if yes, 0 otherwise) (x10)	0.046	0.133	0.729
Variety of rice (x11–13)
White rice (1 if yes, 0 otherwise)	0.078	0.128	0.543
Jasmine rice (1 if yes, 0 otherwise)	0.098	0.130	0.453
Fragrant rice (1 if yes, 0 otherwise)	0.295**	0.139	0.035
Seed cost (1,000,000 KHR/ha) (x14)	−0.215	0.262	0.414
Fertilizer cost (1,000,000 KHR/ha) (x15)	0.204	0.232	0.380
Household own consumption (tonne) (x16)	0.074*	0.042	0.080
Retained for seed recycling (tonne) (x17)	0.176***	0.062	0.005
Selling price (1,000,000 KHR/tonne) (x18)	0.259	0.039	0.398
Road condition (1 if good, 0 otherwise) (x19)	0.049	0.091	0.591
Distance to nearest market (km) (x20)	−0.100***	0.010	0.000
Transport unit cost (1,000,000 KHR/tonne) (x21)	−1.357	1.718	0.431
Access to market information (1 if yes, 0 otherwise) (x22)	−0.027	0.093	0.770
Access to extension (1 if yes, 0 otherwise) (x23)	0.013	0.070	0.851
Access to credit (1 if yes, 0 otherwise) (x24)	−0.082	0.074	0.269
Constant	1.498	0.400	0.000
Dependent variables = natural logarithm of the volume of rice sale to markets per household (ln tonne) n = 242, R^2 = 0.699, Adjusted R^2 = 0.665, F-statistic = 20.97 (p = 0.000).

Notes: ***, **, and * indicate the statistical significance at p < 0.01, p < 0.05, and p < 0.10, respectively.

USD 1 = approx. KHR 4050 at the time of the survey.

Table 16. Ordinary least squares regression for profitability of rice farming

Variable	Coeff.	Std. Err.	p-value
Gender of household head (1 if male, 0 if female) (x1)	−0.061	0.087	0.487
Age of household head (years) (x2)	−0.007	0.005	0.198
Education of household head (x3–5) (base = illiterate)
Primary school (1 if completed, 0 otherwise)	0.213**	0.103	0.039
Secondary school (1 if completed, 0 otherwise)	0.252**	0.122	0.039
High school (1 if completed, 0 otherwise)	0.263	0.173	0.129
Farming experience of household head (years) (x6)	0.013**	0.006	0.034
Household size (persons) (x7)	−0.042*	0.025	0.096
Household labor engaged in rice farming (persons) (x8)	0.041	0.044	0.351
Land cultivated under rice (ha) (x9)	−0.016	0.010	0.112
Access to irrigation facility (1 if yes, 0 otherwise) (x10)	−0.061	0.151	0.686
Variety of rice (x11–13)
White rice (1 if yes, 0 otherwise)	0.017	0.145	0.908
Jasmine rice (1 if yes, 0 otherwise)	0.320**	0.148	0.031
Fragrant rice (1 if yes, 0 otherwise)	0.717***	0.157	0.000
Seed cost (1,000,000 KHR/ha) (x14)	−0.940***	0.296	0.002
Fertilizer cost (1,000,000 KHR/ha)) (x15)	−1.228***	0.263	0.000
Household own consumption (tonne) (x16)	0.073	0.048	0.130
Retained for seed recycling (tonne) (x17)	−0.081	0.070	0.245
Selling price (1,000,000 KHR/tonne) (x18)	1.266***	0.345	0.000
Road condition (1 if good, 0 otherwise) (x19)	0.002	0.103	0.987
Distance to nearest market (km) (x20)	0.002	0.011	0.858
Transport unit cost (1,000,000 KHR/tonne) (x21)	2.483	1.943	0.203
Access to market information (1 if yes, 0 otherwise) (x22)	−0.019	0.105	0.853
Access to extension (1 if yes, 0 otherwise) (x23)	−0.026	0.079	0.739
Access to credit (1 if yes, 0 otherwise) (x24)	−0.027	0.084	0.751
Constant	0.746	0.452	0.101
Dependent variables = profitability of rice (KHR 1,000,000/ha) n = 242, R^2 = 0.577, Adjusted R^2 = 0.531, F-statistic = 12.36 (p = 0.000).

Notes: ***, **, and * indicate the statistical significance at p < 0.01, p < 0.05, and p < 0.10, respectively.

USD 1 = approx. KHR 4050 at the time of the survey.

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