Abstract

ABSTRACT Data from a 2004 survey of farms in two districts in Dak Lak Province in Vietnam were used in a two-step analysis to assess the efficiency of smallholder coffee farms. In the first step, technical and cost efficiency measures were calculated using Data Envelopment Analysis. In the second step, Tobit regressions were used to identify factors correlated with technical and cost inefficiency. Results indicate that small farms were generally less efficient than large farms. Inefficiencies observed on small farms appear to be related, in part, to the scale of investments in irrigation infrastructure, education levels and the degree to which households are reliant on coffee.

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