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Production Efficiency and Diversification in Mexican Coffee-Producing Districts

Published online by Cambridge University Press:  28 April 2015

Dmitry Vedenov ,
Jack Houston  and
Gabriela Cardenas
Dmitry Vedenov*
Affiliation:
Department of Agricultural Economics, Texas A&M University
Jack Houston
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, GA
Gabriela Cardenas
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, GA
*
330C Blocker Bldg, 2124 TAMU, Texas A&M University, College Station, TX 77843-2124; Tel:979-845-8493; Fax: 979862-3019; E-mail: vedenov@tamu.edu
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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.

Keywords

coffee productiondistance functionMexicoproduction systemsstochastic frontiertechnical efficiencyL25L79O13O18Q12
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 3 , December 2007 , pp. 749 - 763
Copyright
Copyright © Southern Agricultural Economics Association 2007

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