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INSTITUTE OF POLICY AND STRATEGY FOR AGRICULTURE AND RURAL DEVELOPMENT
CENTER FOR AGRICULTURAL POLICY
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CARD Project 030/06 VIE: Developing a strategy for enhancing the competitiveness of rural small and medium enterprises in the agro-food chain: the case of animal feed
Training Manual for CARD project 030/06 VIE
Donna Brennan and Sally Marsh
School of Agricultural and Resource Economics, University of Western Australia
Maximizing Feasible profit
July 2010
Table of Contents
Table of Contents...........................................................................................................2
1 Purpose of the training manual..............................................................................4 2 Problem identification............................................................................................6 2.1 Identification of key issues..............................................................................6 2.1.1 Methodology/activities ............................................................................6 2.1.2 Use of reviews and secondary data..........................................................9
2.2 Formulating researchable questions or hypotheses.........................................9 2.3 Focusing data collection................................................................................10 2.4 References in this section..............................................................................11
3 Survey design and sampling techniques..............................................................12 3.1 Introduction...................................................................................................12 3.2 Why is it so difficult to conduct a good survey?...........................................12 3.2.1 Issues with translation............................................................................13
3.3 Steps in the process of doing a survey ..........................................................13 3.3.1 Is a survey really needed?......................................................................13 3.3.2 Statement of information goals and uses...............................................14 3.3.3 Collect background information............................................................14 3.3.4 Focus groups..........................................................................................14 3.3.5 Select survey method (personal interview, phone, letter, web-based)...15 3.3.6 Determine sampling method and select sample.....................................16 3.3.7 Draft questions.......................................................................................16 3.3.8 Pilot test the questionnaire.....................................................................17 3.3.9 Redraft the survey..................................................................................17 3.3.10 Train interviewers/enumerators.............................................................17 3.3.11 Collect the data ......................................................................................17 3.4 Sampling........................................................................................................18 3.4.1 Accuracy, bias and precision .................................................................18 3.4.2 Types of sample design..........................................................................18 3.4.3 Sampling strategies................................................................................19 3.4.4 Proportional stratification by size..........................................................23 3.5 Question design.............................................................................................24 3.5.1 Designing good survey questions ..........................................................24 3.5.2 Should you use open or closed questions?.............................................24 3.5.3 If closed questions, which type of closed question format? ..................25 3.5.4 Using Likert Scales................................................................................26 3.6 References in this chapter .............................................................................27
4 Data entry.............................................................................................................28 4.1 Principles of database design ........................................................................28 4.2 Designing tables from survey questionnaires................................................28 4.2.1 Example of table design in IFPRI feedmill database.............................29
4.3 Practicing using queries ................................................................................29 4.3.1 Types of queries:....................................................................................30 4.4 Designing a database for the CARD Livestock questionnaire......................31
5 Data cleaning and analysis– techniques using Stata............................................33 5.1 Data cleaning.................................................................................................33 5.2 Creating Output Templates ...........................................................................33 5.3 Stata dofiles for feed use as an example .......................................................36 5.3.1 Objectives: .............................................................................................36
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5.3.2 Exercises................................................................................................37 6 Analysis of Survey Data ......................................................................................49
6.1 Treatment of variables in survey analysis.....................................................49 6.1.1 The number of variables ........................................................................49 6.1.2 Levels of measurement..........................................................................49 6.1.3 Method of analysis.................................................................................50 6.1.4 Descriptive and inferential statistics......................................................51 6.2 A Quick Overview of Descriptive Statistics.................................................51 6.2.1 Measures of location..............................................................................52 6.2.2 Measures of spread ................................................................................52 6.2.3 Measures of shape..................................................................................53 6.2.4 Techniques for displaying and examining distributions........................53 6.3 Data management in Excel............................................................................55 6.3.1 Notation for basic functions in Excel.....................................................55 6.3.2 Using more complex functions in Excel - SUMIF ................................55 6.3.3 Using more complex functions in Excel - COUNTIF...........................57 6.3.4 Using more complex functions in Excel - TRANSPOSE......................58 6.3.5 Pivot Tables in Excel.............................................................................62 6.3.6 Using MACROs in Excel.......................................................................66 6.4 References in this section..............................................................................71
7 Assessing competitiveness – principles and exercises.........................................72 7.1 Types of market structure..............................................................................72 7.1.1 Perfect competition................................................................................72 7.1.2 Monopoly...............................................................................................72 7.1.3 Monopolistic competition......................................................................72 7.1.4 Oligopoly ...............................................................................................73
7.2 Analyzing competitiveness ...........................................................................74 7.3 Product differentiation in the feedmill industry............................................74 7.4 Competitiveness in the livestock feed production sector..............................75 7.4.1 Evidence of returns to scale...................................................................76 7.4.2 Supply chain differences........................................................................77 7.4.3 Competitive strategies............................................................................77 7.5 Production economics for feed operations – least-cost feed rations.............79 7.5.1 Some basic animal nutrition...................................................................79 7.5.2 The pig diet used in this training course................................................80 7.5.3 Linear programming ..............................................................................81 7.5.4 Mathematical specification of the linear programming problem...........86 7.5.5 Least cost feed analysis using linear programming...............................87 7.6 References for this chapter............................................................................88
8 Reporting and communication.............................................................................89 8.1 Writing the research report............................................................................89 8.1.1 Working in Outline................................................................................89 8.1.2 Labelling and cross referencing tables and figures................................90 8.1.3 Tables and figures in a Research Report................................................91 8.1.4 Other conventions for Report writing in English...................................92
8.2 Some common errors in English writing.......................................................92 8.2.1 Language used in reports.......................................................................92 8.2.2 Correct use of some English words in Reports......................................93 8.3 Writing policy briefs .....................................................................................94 8.3.1 Preparation of a Policy Brief..................................................................94
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1. Purpose of the training manual
The purpose of this manual is to document theoretical issues, methodology and analytical techniques that were used in the process of conducting CARD Project 030/06 VIE “Developing a strategy for enhancing the competitiveness of rural small and medium enterprises in the agro-food chain: the case of animal feed”. Work for this project was conducted from mid-2007 to early 2010. It is hoped that the experiences gained from the project work and documented in this training manual will be useful for future work undertaken by IPSARD/CAP.
The chapters include:
• 2. Problem identification. In this chapter, techniques to identify key issues, formulate researchable hypothesis and focus data collection are discussed using examples from the project.
• 3. Survey design and sampling techniques. This chapter focuses on aspects of socio-economic surveying, including: reasons why surveys can be difficult to conduct; steps in conducting a survey; sampling techniques used in surveys; and question design.
• 4. Data entry. This chapter contains the material from a course on database design presented by Donna Brennan in July 2008. It should be read in conjunction with electronic course materials in the zip file “Course database and access forms.zip”. The chapter includes sections on principles of database design, designing tables from survey questionnaires and using queries in Microsoft Access.
• 5. Data cleaning and analysis – techniques using Stata. This chapter contains tips and techniques for data cleaning, building data output templates, and data analysis. Training notes recorded by members of the CAP team (Pham Thi Lien Phuong and Nguyen Thi Thinh), in the form of annotated Stata do files, are provided in this section. Data needed for these analyses will be in the CARD project database kept at CAP.
• 6. Analysis of survey data. This chapter includes a discussion of treatment of variables in analysis of survey data and an overview of descriptive statistics. Additionally, it includes material from a training course in data management in Excel provided to team members when they visited Perth in August 2009. The course covered special functions for managing and querying large data tables, including conditional sums, transposing data, and extracting subsets using pivot tables. The course also covered the basics of building macros. Training notes recorded by members of the CAP team (Pham Thi Lien Phuong and Nguyen Thi Thinh) are provided in this chapter.
• 7. Assessing competitiveness - principles and exercises. This chapter briefly outlines types of market structure. Issues to consider when analyzing competitiveness, and in particular, issues when assessing competitiveness of firms producing a heterogeneous product are discussed. Aspects of competitiveness investigated in the project are outlined, and material from a training course on Least-Cost feed rations is included.
• 8. Reporting and communication. This final chapter focuses on providing tips for producing a well-structured and well-written Research Report, including techniques for handling large documents in Microsoft Word and a
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discussion of common errors made in English writing. Finally we outline the preparation of a Policy Brief.
The report was mainly written by Dr Donna Brennan and Sally Marsh, but also contains contributions from Vietnamese CARD project team members, Pham Thi Lien Phuong and Nguyen Thi Thinh in Chapters 5 and 6.
A number of electronic files are provided as part of and to be used in conjunction with this report:
For Chapter 4: Course database and access forms.zip For Chapter 6: macro_practice.xls
For Chapter 7: Cong Nhan May Mac.xls
Least cost feed ration exercise.xls
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