Technical efficiency of coffee farming in the south of Minas Gerais

Abstract

The objective of this study was to estimate the technical efficiency indices for coffee production, as well as to identify the determinants of efficiency differentials in rural properties, in the south region of Minas Gerais state, Brazil. The adverse economic situation of coffee growing in Brazil, in recent years, generated by the falling tendency of international prices, has led many producers to reduce the productive area or to give up the activity. It is estimated that the incidence of inefficiency in coffee growing contributes to the growth of negative results and the constant discouragement of coffee growers. However, the determination and analysis of these indicators allow of the identification of efficient standards, informing producers on the changes needed to achieve positive economic outcomes. This study is a quantitative work, with transversal temporality, in addition to being an explanatory and descriptive research, supported by an intentional nonprobabilistic sample (with 107 producers who represent 0.8% of establishments in the south/southwest region of Minas Gerais state), with data collection resulting from the application of questionnaires, and data treatment from the estimation of stochastic frontiers, which allowed to know the characteristics of the adopted technology and efficiency. Due to the type of the performed sampling, an average of 57.33% was evidenced by the results, for which the use of agricultural insurance, mechanized harvesting, soil analysis, leaf and pest analyses, in addition to organic fertilization and observation with a cooperative are the factors that most collaborate.