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Analysis of Production Efficiency of Mexican Coffee-Producing Districts

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Listed:
  • 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
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    File URL: http://purl.umn.edu/19470
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    References listed on IDEAS

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    1. D. Gale Johnson, 2000. "Population, Food, and Knowledge," American Economic Review, American Economic Association, vol. 90(1), pages 1-14, March.
    2. Fuss, Melvyn & McFadden, Daniel & Mundlak, Yair, 1978. "A Survey of Functional Forms in the Economic Analysis of Production," Histoy of Economic Thought Chapters,in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 4 McMaster University Archive for the History of Economic Thought.
    3. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    4. Gilligan, Daniel O., 1998. "Farm Size, Productivity, And Economic Efficiency: Accounting For Differences In Efficiency Of Farms By Size In Honduras," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20918, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
    6. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
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    Cited by:

    1. 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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    Keywords

    Crop Production/Industries;

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