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The economics of pest and production management in small-holder cocoa: lessons from Sulawesi

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  • Jessica Grace Perdew
  • Gerald Shively

Abstract

We examine pest control and production management methods used by farmers in Sulawesi to improve cocoa bean quality and increase income from cocoa. Strategies investigated include those directed at increasing the number and size of cocoa pods, those aimed at reducing hosts for pest transmission, two input-intensive approaches, and the alternative of doing nothing beyond harvesting mature cocoa pods. Using 2005 production data from 600 cocoa farms, we identify factors correlated with adoption of each treatment and, controlling for treatment, isolate factors that influence cocoa yields. To study the conditional profitability of input allocation, we compare observed factor shares with profit-maximising input levels and derive lessons for extension efforts. We conclude that the average increase in private returns arising from more intensive cocoa management appears sufficient to compensate for higher production costs, but that observed extension efforts have not been correlated with higher profits among farmers in the sample.

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  • Jessica Grace Perdew & Gerald Shively, 2009. "The economics of pest and production management in small-holder cocoa: lessons from Sulawesi," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(3), pages 373-389.
    • Handle: RePEc:taf:bindes:v:45:y:2009:i:3:p:373-389
    DOI: 10.1080/00074910903416288
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    1. François Ruf & Frederic Lançon, 2004. "From Slash and Burn to Replanting : Green Revolutions in the Indonesian Uplands?," World Bank Publications - Books, The World Bank Group, number 15015.
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    Cited by:

    1. Xu, Pei & Wang, Zhigang, 2012. "Factors Affect Chinese Producers' Adoption of a New Production Technology: Survey Results from Chinese Fruits Producers," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(2), pages 1-16.

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