Optimization of enterprise combinations with special reference to garden land agriculture

Abstract

This study on optimal enterprise combinations on garden land farms in Kerala was carried out using data collected from sample holdings selected from the ninth ward of Panancherry panchayath under Ollukkara block in Trichur district, through simple random sampling. The 72 holdings that formed the sample were grouped into four categories based on size of garden land holdings. The major constraints identified were land, labour in three seasons viz. June to September, October to December and January to May, irrigation and capital. Banana was identified as the most resource intensive activity followed by arecanut plus pepper. Cocoa was the least labour and capital intensive activity. Net margins calculated per unit of activity indicated that banana had highest net margin in all categories followed by arecanut plus pepper, coconut, cow, tapioca and cocoa in the decreasing order. Optimal plans worked out under existing conditions using linear programming technique for model farms under the four categories of holdings indicated a uniform tendency of increase in area under coconut over the existing plan. Except the optimal plan for the second category, which included arecanut plus pepper also, all other optimal plans had three enterprises viz. coconut, banana and cow. Cocoa and tapioca did not appear in any optimal plan. Maximum increase in net income of 52 per cent was recorded in optimal plan for first category. In other categories the increases were ten per cent in both second and third and nine per cent in the fourth category. Optimal plans resulted in more efficient use of resources. Sensitivity of optimal plans were tested by considering 25 per cent increases in prices of pepper and tapioca. The optimal plans at revised prices indicated decline in area under coconut over optimal plans at original prices in all categories simultaneously followed by appearance of tapioca in the first category and arecanut plus pepper in second, third and fourth categories. Banana was eliminated from second category and cow activity from the third category. Increase in net incomes on revised optimal plans over existing plans worked out to 54 per cent, 20 per cent, 13 per cent and 10 per cent respectively on categories I, II, III and IV.