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Home Browse 2022 - Volume 124 Volume 124 - Issue 3

Returns to Scale and Technical Efficiency in Colombian Coffee Production: Implications for Colombia’s Agricultural and Land Policies

byPERDOMO CALVO, Jorge Andrés,ARTECHE, JosuandANSUATEGI, Alberto
  • Year 2022
  • Volume 124
  • Issue 3
  • Pages 104-112

This paper applies a parametric approach to estimate technical and scale (in)efficiencies using input and output data at the level of 850 individual Colombian coffee-farms. Different Stochastic Production Frontier functions are estimated using a two-step procedure that corrects the endogeneity that has been ignored in previous works, leading to more reliable (i.e. unbiased and consistent) results. We conclude that small and medium coffee farmers are technically inefficient and exhibit increasing returns to scale, whereas large coffee farmers are close to being quasi-technically efficient and exhibit decreasing returns to scale. The corrected-for-endogeneity estimation also indicates that small and medium-sized units must prioritise primarily the land factor, whereas large farms should concentrate their efforts on increasing the labour factor. Based on these results, several agricultural and land policy recommendations are made.

Tags: coffee productionendogeneityreturns to scalestochastic production frontiertechnical efficiency
  • https://doi.org/10.7896/j.2370
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  • Scopus SJR (2024): 0.37
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  • ISSN (electronic): 2063-0476
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Publisher Name: Institute of Agricultural Economics Nonprofit Kft. (AKI)

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Name of Responsible Person for Publishing:        Dr. Pal Goda

Name of Responsible Person for Editing:             Dr. Attila Jambor

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adoption (6) agricultural exports (3) agriculture (13) AKIS (4) Albania (4) CAP (4) Central and Eastern Europe (3) climate change (7) Common Agricultural Policy (3) competitiveness (5) consumer preferences (4) Covid-19 (6) Data Envelopment Analysis (3) DEA (3) digitalisation (4) economic growth (3) efficiency (3) elasticity (3) European Integration (3) European Union (8) family farms (4) food security (4) Hungary (5) impact evaluation (4) innovation (4) Kosovo (3) LEADER (4) maize (3) off-farm income (4) participation (3) policy (4) price transmission (3) profitability (4) propensity score matching (3) risk management (3) rural areas (4) rural development (13) social capital (3) social innovation (3) Structural Funds (3) sustainability (6) sustainable agriculture (4) sustainable development (4) technical efficiency (6) Ukraine (4)
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