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Analysis of Production Efficiency of Mexican Coffee-Producing Districts

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  • Cardenas, Gabriela
  • Vedenov, Dmitry V.
  • Houston, Jack E.

Abstract

Despite the decline of coffee prices during the 1990s, coffee production remains a main economic activity for producers in Southeastern Mexico. This paper analyzes the coffee production system for 24 municipios, or districts, in Veracruz, Mexico during a five-year cropping period (1997-2002). A stochastic frontier approach is used in order to estimate an input distance function and evaluate production efficiency during the period. Factors such as coffee quality and access to markets are tested in terms of their effect on efficiency. The results show the production process in these municipios, as measured by technical efficiency, seems to be stable over time despite of price fluctuations in the global market. Production of staple crops (corn) along with coffee resulted in lower efficiency. Factors contributing to higher efficiency were higher population density, production of specialty crops other than coffee or staple crops, and higher altitude, which is typically associated with production of higher quality coffee.

Suggested Citation

  • Cardenas, Gabriela & Vedenov, Dmitry V. & Houston, Jack E., 2005. "Analysis of Production Efficiency of Mexican Coffee-Producing Districts," 2005 Annual meeting, July 24-27, Providence, RI 19470, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19470
    DOI: 10.22004/ag.econ.19470
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    References listed on IDEAS

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    Cited by:

    1. Jorge Andres, Perdomo Calvo & Darrell Lee, Hueth & Jorge Andres, Perdomo Calvo, 2011. "Funciones de producción, análisis de economías a escala y eficiencia técnica en el eje cafetero colombiano: una aproximación con frontera estocástica [Estimation of the Production Functional Form, ," MPRA Paper 37179, University Library of Munich, Germany.
    2. Perdomo, Jorge-Andres & Hueth, Darrell L., 2010. "Funciones de producción y eficiencia técnica en el eje cafetero colombiano: una aproximación con frontera estocástica," Documentos CEDE Series 100873, Universidad de Los Andes, Economics Department.

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