IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v35y2019i3p439-456.html
   My bibliography  Save this article

How can the productivity of Indonesian cocoa farms be increased?

Author

Listed:
  • Andras Tothmihaly
  • Verina Ingram

Abstract

This study investigates the Indonesian cocoa production to reveal the possibilities for poverty alleviation. We estimate, using 1,290 panel observations from 722 households and stochastic frontier analysis, the technical efficiency of cocoa production and disaggregate productivity growth. Our results indicate that the average efficiency of the cocoa farmers is 50%. Farmers' educational attainment and their experience in cocoa farming are significant factors increasing efficiency. We also find that the productivity of Indonesian cocoa farms increased by 75% between 2001 and 2013. Technical efficiency growth and the increased chemicals use supported by government subsidies were responsible for the majority of this gain. Furthermore, large distortions in input allocation were found. Hence, policies that encourage the efficient use of farm inputs would be highly beneficial. Weather‐ and pests‐induced volatility in cocoa production could be decreased by promoting agricultural research on drought‐ and disease‐resistant cocoa varieties (EconLit citations: D24, O13, Q12).

Suggested Citation

  • Andras Tothmihaly & Verina Ingram, 2019. "How can the productivity of Indonesian cocoa farms be increased?," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 439-456, July.
    • Handle: RePEc:wly:agribz:v:35:y:2019:i:3:p:439-456
    DOI: 10.1002/agr.21595
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21595
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21595?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Besseah, Felix A. & Kim, Sangho, 2014. "Technical Efficiency of Cocoa Farmers in Ghana," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 37(2), pages 1-24.
    2. Andras Tothmihaly, 2017. "How low is the price elasticity in the global cocoa market?," GlobalFood Discussion Papers 258587, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    3. Agom, Damian Ila & Ohen, Susan Ben & Itam, Kingsley Okoi & Inyang, Nyambi N., 2012. "Analysis of Technical Efficiency of Smallholder Cocoa Farmers in Cross River State, Nigeria," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 2(3).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Longang, Saubaber Gamo & D., Soh Wenda Boris. & Bergaly, Kamdem Cyrile, 2023. "Adoption of Cocoa Certification Scheme and Farmer’s Technical Efficiency in Cameroon: A Double Bootstrap Procedure," AfricArxiv 2r7qa, Center for Open Science.
    2. Marcomini, Gilson Rogério & Patino, Marco Tulio Ospina & Alam, Mohammad Jahangir, 2023. "Potato Production Strategies in Brazil: The Influence of Determinants of Technical and Economic Efficiency," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(2), April.
    3. Amr Khafagy & Mauro Vigani, 2023. "External finance and agricultural productivity growth," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 448-472, March.
    4. Alexis H. Villacis & Jeffrey R. Alwang & Victor Barrera & Juan Dominguez, 2022. "Prices, specialty varieties, and postharvest practices: Insights from cacao value chains in Ecuador," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 426-458, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andras Tothmihaly, & Verina Ingram., 2017. "How can the productivity of Indonesian cocoa farms be increased?," GlobalFood Discussion Papers 258588, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Gabriel Picone & Assi José Carlos Kimou & Désiré Kanga, 2023. "Medical emergencies and farm productivity in Côte d'Ivoire," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1630-1648, August.
    3. Tothmihaly, Andras & Ingram, Verina & von Cramon-Taubadel, Stephan, 2019. "How Can the Environmental Efficiency of Indonesian Cocoa Farms Be Increased?," Ecological Economics, Elsevier, vol. 158(C), pages 134-145.
    4. Y. R. Waarts & V. Janssen & R. Aryeetey & D. Onduru & D. Heriyanto & S. Tin Aprillya & A. N’Guessan & L. Courbois & D. Bakker & V. J. Ingram, 2021. "Multiple pathways towards achieving a living income for different types of smallholder tree-crop commodity farmers," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1467-1496, December.
    5. Bismark Amfo & Robert Aidoo & James Osei Mensah, 2021. "Food coping strategies among migrant labourers on cocoa farms in southern Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(4), pages 875-894, August.
    6. Gideon Danso-Abbeam & Lloyd J. S. Baiyegunhi, 2020. "Do farm-level technical efficiency and welfare complement each other? Insight from Ghana’s cocoa industry," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-15, December.
    7. NDUBUEZE-OGARAKU, Mercy Ebere & ADEYOOLA, Olutola Ayodele & NWIGWE, Cecilia Akuchinyere, 2021. "Determinants Of Technical Efficiency Of Small-Holders Yam Farmers In Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 24(1), March.
    8. Aboah, Joshua & Setsoafia, Edinam Dope, 2022. "Examining the synergistic effect of cocoa-plantain intercropping system on gross margin: A system dynamics modelling approach," Agricultural Systems, Elsevier, vol. 195(C).
    9. Dolatabadi, Sepideh Rostami & Ghahremanzadeh, Mohammad, 2016. "Measuring the Technical Efficiency of Canola Farmers and Determining the Effective Factors in Tabriz County, Iran," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(4), December.
    10. Thomas Cherico Wanger & Francis Dennig & Manuel Toledo-Hern'andez & Teja Tscharntke & Eric F. Lambin, 2021. "Cocoa pollination, biodiversity-friendly production, and the global market," Papers 2112.02877, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:35:y:2019:i:3:p:439-456. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.