Use of agricultural technology, yields and economic profitability of small-scale producers (Coffea arabica L.)

Abstract

Objective: The objective of this study was to determine the relationship between use of agricultural technology and levels of crop yield and profitability of coffee farmers (Coffea arabica L.) en Puebal and Oaxaca, Mexico. Design/Methodology/Approach: The field work was carried out in the Mazateca region of Oaxaca and the Cuetzalan region of Puebla, in 2019. The data were gathered by applying a survey, using a statistical sample, with 95% confidence and accuracy of 6% of the average coffee yields. Results: The profitability (BCR) was 0.90, which means that for each invested peso, 0.10 pesos were lost, that is, 10% of the investment. For Puebla farmers, the RBC was 1.0 and for Oaxaca producers, 0.81. The BCR of the producers that sold as parchment coffee was 1.16 for those from Cuetzalan and 1.04 for those from the Mazateca region. The group of producers that have high TUI have a different average yield and profitability than the average of the groups of producers that have medium and low TUI. The explanatory variables of yield and profitability are the TUI, the size of the PU, and human capital. Study Limitations/Implications: This study, in a next stage, could benefit from estimating the rate of technology adoption and the training needs of coffee farmers. Conclusions: Due to the positive effect of TUI and HC on yields and profitability, these can be part of public policy interventions to improve coffee growing.