According to characteristics of cooperatives systems in attracting local participations, these systems can be seen as one way of achieving the objectives of rural development and agricultural sector. Among the most important goals in the production cooperatives is increase efficiency in production units. According to, in this study which was conducted in the 1389-1388, efficiency of cooperative production in Khuzestan province has been studied, to assess the economic efficiency of these units. In this study, the estimated production frontier function to measure efficiency and its determinants among farmers has been paid. The study results show that the average efficiency of the production cooperatives is79 %.Also the results indicate that the variables; number of members, acreage and number of pieces have a negative effect on production cooperative efficiency. But the effect of variables such as access to public funds, the amount of services produced by cooperatives, education level and experience of cooperative`s manager and the investment manager of cooperative`s capital level can increase production cooperatives efficiency level.
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