TECHNICAL EFFICIENCY IN SMALL-SCALE 'BUNGULAN' BANANA PRODUCTION IN COTABATO, PHILIPPINES: A STOCHASTIC FRONTIER ANALYSIS

Abstract This study evaluates the technical efficiency of small-scale 'Bungulan' banana farming in Cotabato, Philippines, crucial for enhancing productivity. Given the Philippines' prominence as a banana exporter, it aims to identify factors impacting technical efficiency and address local challenges. Using stochastic frontier analysis, 182 members of the Organic Banana Producers Association (OBPA) were sampled through stratified techniques. These farmers, engaged in 'Bungulan' farming for over three years on land under 10 hectares, provided primary and secondary data. Results showed 43.96% of farms had efficiency levels below 0.50, and only 3.30% achieved near-optimal efficiency (>0.90). Key findings include the significant impact of quality planting materials on efficiency (coefficient: 3.76). Increased production correlates with higher efficiency, while family labor and training programs show mixed effects. Regular extension contacts and proximity to markets reduce inefficiency, emphasizing advisory services and market access. Recommendations include improving planting materials, optimizing labor, and enhancing training, extension services, and infrastructure.