Thesis (BS Agribusiness Economics) University of the Philippines Mindanao, 2024

This study investigated the factors affecting technical efficiency of Arabica coffee farmers in Davao del Sur, Philippines. A survey was conducted among 125 famers in two barangays, Managa and Alegre, to collect data on farm management practices and inputs. The study employed a Cobb-Douglas production function, Data Envelopment Analysis(DEA), and Tobit regression methods. Results from Cobb-Douglas production function showed that hired labor costs, total farm income, and altitude were positively correlated with increased productivity. From DEA, it appears that Brgy. Alegre exhibited a wider distribution of efficiency scores, with some farmers achieving near-optimal levels. This signifies that some farmers may be highly efficient, while others have significant room for growth. In contrast, Brgy. Managa had a higher proportion of farmers in lower efficiency ranges, suggesting room for improvement in resource allocation. Furthermore, the Tobit regression analysis identified several factors influencing technical efficiency. Performing pruning on coffee trees, farmer’s sex and membership in producer organizations were all significant in positively affecting efficiency. Conversely, sun-drying process, length of coffee farming experience, and access to credit showed a negative effect on efficiency. These findings suggest areas for improvement, such as promoting proper pruning and alternative drying methods. The study also recommends training programs and support for producer organizations to enhance farm management practices and coffee production in the region.