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Production Efficiency and Diversification in Mexican Coffee-Producing Districts

Author

Listed:
  • Vedenov, Dmitry
  • Houston, Jack
  • Cardenas, Gabriela

Abstract

Coffee production system is analyzed for 24 municipios (districts) in Veracruz, Mexico, from 1997 to 2002. A stochastic frontier approach is used to estimate an input distance function and to evaluate production efficiency. Results show the production process to be stable over time despite global price fluctuations. Production of staple crop (corn) with either coffee or other cash crops results in increased efficiency as a result of the economies of complementarity, while production of coffee with other cash crops leads to lower efficiency. Factors contributing to higher efficiency included higher population density, road availability, and higher altitude, typically associated with production of higher-quality coffee.

Suggested Citation

  • Vedenov, Dmitry & Houston, Jack & Cardenas, Gabriela, 2007. "Production Efficiency and Diversification in Mexican Coffee-Producing Districts," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(3), pages 749-763, December.
    • Handle: RePEc:cup:jagaec:v:39:y:2007:i:03:p:749-763_02
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    Cited by:

    1. Steele C. West & Amin W. Mugera & Ross S. Kingwell, 2024. "The impact of repayment obligations arising as a by‐product of input use on partial inefficiency: Evidence from Western Australian farm businesses," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 68(3), pages 678-700, July.
    2. Gregory BROCK & Constantin OGLOBLIN, 2015. "A Stochastic Walk Down Mexico’S Mesoamerican Frontier, 1990-2011," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 99-114.
    3. Phan Thi Thuy & Le Duc Niem & Thi Minh Hop Ho & Philippe Burny & Philippe Lebailly, 2018. "Economic Analysis of Perennial Crop Systems in Dak Lak Province, Vietnam," Sustainability, MDPI, vol. 11(1), pages 1-14, December.
    4. Gregory Brock, 2020. "The real Oaxaca decomposition: convergence within Mexico’s Oaxaca region in the twenty-first century—Do types of crime and religious belief matter?," Economic Change and Restructuring, Springer, vol. 53(4), pages 543-569, November.
    5. Chih‐Yu Yang & Ching‐Cheng Lu & Yung‐Ho Chiu & Tai‐Yu Lin, 2022. "Analysis of coffee production efficiency and productivity strategy in African and non‐African countries," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 946-969, October.

    More about this item

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L79 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Other
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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