An analysis of operational efficiency and optimal development for agricultural cooperatives in Chiang Mai

By employing the Malmquist productivity index, Data Envelope Analysis (DEA) and super-efficiency DEA, this study attempts to analyze the total factor productivity change, find out the optimal size of business and some policy implications are suggested in order to improve efficiency of agricultural cooperatives in Chiang Mai province, Thailand. The results represent that after adopting information technology (Technological change), total productivity change has improved however pure technical efficiency change and scale efficiency change still continue in downward trend. From 55 agricultural cooperatives, there are 19 units (34%) having pure technical efficiency and 18 units of them are extreme efficient DMUs. Moreover 9 agricultural cooperatives (17%) have assets worth approximate 40.69 billion baht and have constant return to scale. The optimal membership and the proper volume of debt are important notices for administrators considering for improving business efficiency.