The effects of altitude to the productivity, technical efficiency, and cost and returns of cacao farms, and a cointegration analysis of cacao prices in Davao, Philippines /

Durano, Francis Levi A.,

The effects of altitude to the productivity, technical efficiency, and cost and returns of cacao farms, and a cointegration analysis of cacao prices in Davao, Philippines / Francis Levi A. Durano; Pedro A. Alviola IV, adviser - 2019 - 103 leaves

Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2019

There stands a relationship between altitude and climate. As a matter of fact, climate variability has been shown to affect technical efficiency of farmers. This study, considering farm altitude, compared the productivity, technical efficiency, and cost and returns analysis of different cacao producing areas in Calinan and Marilog Districts. Additionally, cointegration was used to see the existence of relationship between monthly average African prices of dried cacao beans to local farmgate prices in Davao del Sur. Both primary and secondary data was used, for the estimation of productivity and technical efficiency, the Stochastic Frontier Analysis was employed, while profitability ratios were used for the cost and returns analysis. For the cointegration test involving time-series data of prices, the Engle-Granger test was used alongside Granger casualty for testing the effects of casualty prices. The cost and return analysis show that farms engaged in dried cacao bean production in the low, medium and high altitude areas have positive but smaller net returns, relative to wet cacao bean production in low and medium altitude levels. The Stochastic Frontier Analysis demonstrated that farm input is a positive and significant factor of production, while high level altitude of farms, education, and civil status are significant sources of technical inefficiency. Findings from the Engle-Granger test show that Davao del Sur process are cointegrated with African prices, however the Granger causality test showed that African process do not Granger cause Davao del Sur prices. Results from this study point out that altitude, though climate variability, can affect input purchasing behavior by farmers, and that dried cacao bean production entails lesser net returns to farmers. For the Philippines to be able to materialize set goals on intensifying cacao production, infrastructure and post-harvest measures should be improved, along with the increased production to lessen prices volatility in the world markets


Undergraduate Thesis --ABE 200b,
 
University of the Philippines Mindanao
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