Profit Efficiency and Productivity Analysis of an Intercropped Coffee Production in Batangas and Cavite, 2021

Date

1-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nora DM. Carambas

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

The demand for coffee nowadays has been steadily increasing especially with coffee shops being established left and right. However, domestic production cannot supply the needed amount of coffee beans and have to rely heavily on importation.

The study was to examine the productivity and profit efficiency of coffee farms in Batangas and Cavite that adopt an intercropping system. Along with the general objective, the study was guided by four specific objectives: (1) characterize the coffee farmers in Batangas and Cavite and their cropping system; (2) to compare the profitability of an intercropped coffee production system between Batangas and Cavite; (3) to compare the profit efficiency between the intercrops; and (4) to determine the factors affecting the productivity and profit efficiency of an intercropped coffee.

Sixty-five coffee-farmer respondents were randomly selected in from three municipalities in Cavite and Batangas. Comparison of inputs used and output produced, profitability analysis, stochastic profit frontier analysis, and analysis of variance were done to evaluate the profit efficiency of the coffee farms.

Results showed that there were significant differences in the profitability of the farms. Moreover, the most profitable intercrops for coffee farms are pineapple and banana. The analysis of the stochastic profit frontier revealed that fertilizer price, wage rate, land area, capital investments, and the age of coffee trees significantly affects the profit of the coffee farms. The inefficiency model showed that weeding frequency, pruning frequency, and coffee-related trainings are positively related to profit efficiency, while fertilizer application frequency, and location of the farm are positively related to profit inefficiency.

The results of the study can be used by the Department of Agriculture, Philippine Coffee Board, and other agencies to further improve the coffee industry in our country. Research and extension services are recommended to help increase the knowledge of the farmers and convince them to shift into more profitable intercrops.

Language

English

LC Subject

Coffee industry, Production (Economic theory)

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 D64

Notes

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Document Type

Thesis

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