Abstract
Abstract The growth of small-scale Peruvian farmers is highly dependent on cocoa factor productivity. Agricultural extension programs can help to improve farm productivity using available resources. Thus, the objective of this study is to estimate the productivity of Peruvian cocoa farming and identify if frequent technical assistance impacts on farmers’ technical efficiency. The data came from a survey of 379 cocoa farmers in Tocache, San Martin (177 producers who sell through intermediaries and 202 who are cooperative members), conducted between January and June 2015. This article is supported by the interaction of two associated techniques: the production function and the technical efficiency technique based on stochastic frontier analysis (SFA). The key findings were that the estimated coefficients for labor, capital, land and fertilizer were positive to cocoa production. Our outcomes also show there is a (marginally) significant relationship between technical assistance and technical efficiency (p-value<10%). There is also a positive relationship between efficiency and other socioeconomic characteristics of being a male, having experience in cocoa cultivation and practicing non-diversification in other crops. Policymakers could consider these results to improve farm management systems and, therefore, the competitiveness of the cocoa plantations in the Peruvian Amazonia.
Highlights
IntroductionThere have been a number of transformations in the agri-food value chains
In recent years, there have been a number of transformations in the agri-food value chains
This study demonstrated several issues related to the productivity of cocoa in the Peruvian Amazon
Summary
There have been a number of transformations in the agri-food value chains. Cocoa and chocolate are no exception to this general trend, and in recent years, a rising number of cocoa marketing channels have emerged to satisfy increasingly diversified patterns of consumer demand (Cidell & Alberts, 2006; Wollni & Brümmer, 2012). Prices have been the most important trading element in the cocoa and chocolate commodity chain (CCCC) (Wollni & Brümmer, 2012); the CCCC is becoming increasingly segmented, with distinctive quality strands emerging that are based on price (Cidell & Alberts, 2006). Cocoa is a paradigmatic case because around 80–90% of cocoa is produced by small family farmers (World Cocoa Foundation, 2014); all the aforementioned processes have had and are still having a relevant impact on small farmers
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