Mohamed OA and Lubna MA
This paper reports the measure of total factor productivity change (TFPCH) for the Sudanese sugarcane factories: An empirical analysis with reference to Sudanese sugar companies (Kenana, Gunied, New Halfa, Sinnar and Assalaya). Based on Data Envelopment Analysis Program (DEAP) Software Version 2.1, using model of input– oriented Malmquist indices of total factor productivity (TFP). Relevant secondary data were collected and analyzed to meet the stated objectives. This paper aimed to decompose TFPCH into two components: Technological change (TECH) and technical efficiency change (EFCH) and the latter was further divided into scale efficiency change (SEFCH) and pure efficiency change (PEFCH). In the study on Sudanese sugarcane plants, the innovation was improving up and down of TECH over time. Scale efficiency operating in Kenana was remained constant return to scale, and total factor productivity was positive. For measuring the scale efficiency operating in Sudanese Sugar Company the results suggest that the scale efficiency was constant return to scale in Gunied and New Halfa compared to increased return to scale in Sinnar and Assalaya. The study recommended that the policy maker in the Sudanese Sugar Company and managers of other sugar factories should make effort to benefit from added value of sugar industry through downstream processes of sugarcane by-product such as molasses bagasse and filter cake, which could be utilized usefully for animal feed, energy and ethanol production.
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