A Cost of Production Literature Review and Study of Arabica Coffee Production in Pacto, Ecuador

A Cost of Production Literature Review and Study of Arabica Coffee Production in Pacto, Ecuador

Author: Asha Sharma

Publisher:

Published: 2020

Total Pages: 0

ISBN-13:

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We conducted a cost of production study through farmer interviews to determine the costs, revenue and net benefits of farming coffee in Pacto, Ecuador in a standard year of production. Farmer interviews also included questions about agronomic challenges farmers face. Secondly, I performed a literature review of how cost of production studies have been shaped by the political economy of the coffee sector - particularly by the power relations between institutions within the coffee sector. I also consider the subjective decisions researchers must make in the design, data collection, analysis, and publication of cost studies, and how these have been shaped by the political economy of the coffee sector. Our results indicated that farmers are losing money by producing coffee in Pacto, Ecuador. Results showed farmers are earning negative net benefits from coffee production in Ecuador, particularly when family labor is valued. Farmers also earned net negative equivalent daily wages from coffee production. Coffee farmers reported struggling with challenges related to lack of extension, pests and diseases, and environmental degradation. Further research is needed to determine if farmers and other stakeholders should continue investing in coffee production, or if other livelihoods might be more appropriate for farmers in this region. Cost studies could benefit from increased transparency of the subjective decisions researchers make during the design and implementation, in order to help standardize and compare methodologies and results. Further research could also be conducted on how to increase the accuracy of farmer-reported data.


Determinants of Technical Efficiency of Coffee Production in Jimma Zone, South West Ethiopia

Determinants of Technical Efficiency of Coffee Production in Jimma Zone, South West Ethiopia

Author: Negese Tamirat Mulatu

Publisher:

Published: 2022

Total Pages: 0

ISBN-13:

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Agriculture has been and continues to assume center stage in the economic policy of Ethiopia. Coffee is one of the most vital sources of income for many coffee growers and continues to be still the leading export commodity in the national economy of Ethiopia. Despite the economic use, the productivity and quality of the coffee is unsatisfactory. Adoption of coffee yield-enhancing technical efficiency is key in improving coffee productivity and quality. Therefore, this study aims to investigate determinants that influence the technical efficiency of coffee yield in Jimma Zone, South west Ethiopia. The primary data was collected among 398 coffee growers in research locations during 2020/21 season. Descriptive statistics and econometric methods were developed for the data analysis. The estimated average value of technical, allocative, and economic efficiencies was 82.63%, 78.35%, and 74.65% respectively, which shows the existence of inefficiency in coffee yield in the Jimma Zone. The findings of OLS regression indicated that technical inefficiency is affected by age, sex, education status, landholding, livestock holding, credit uses, extension uses, off-farm activity, land ownerships, seed, and variety of coffee planted. Coffee yield technical efficiency was associated with a significantly higher coffee yield and per capita annual income of coffee cultivator. Concerned bodies should give important attention to coffee yield enhancing technical efficiency which is base for improving yield. The summary of this coffee yield technical efficiency by policymakers and plan designers could bring better enhancement to the coffee cultivator in the study area.