Leomar M. Sabroso, Adrian M. Tamayo


The Philippine coffee industry is dominated by small-scaled farm households. This study was conducted to measure the technical efficiency of coffee production in Davao City using Data Envelopment Analysis. The study also determined the factors that contribute to the technical efficiency of coffee farms using Logistic Regression. Among the 166 respondents obtained, the study revealed that only 11 DMUs are technically efficient operating under constant return to scale while 154 and 1 were technically inefficient operating under increasing return to scale and decreasing return to scale, respectively. This means that input such as farm size, labor, number of coffee trees, age of coffee trees, fertilizers and pesticides has to be adjusted in order to reach the frontier to be technically efficient DMUs in which coffee farms are the potential to increase production if provided with appropriate support. Furthermore, to achieve bias-corrected DEA technical efficiency scores, Bootstrapping was done and later used for regression. Meanwhile, the logistic regression results revealed that there were significant relationships between technical efficiency and socioeconomic such as Age of Household Head, Sex, Access to Credit, Cropping System, Technology, and Coffee Variety. However, the logistic regression also revealed the factors that have no statistically significant relationship in the variables such as Education, Farm Experiences, Household Size, Extension Services, and Off-farm Activities.


JEL: L60; L66; O13


Article visualizations:

Hit counter


coffee, efficiency, DEA, production

Full Text:



Abdallah, A. H. (2016). Agricultural Credit and Technical Efficiency in Ghana: Is There A Nexus? Agricultural Finance Review.

Abdulai, A., & Huffman, W. (2000). Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana. Economic Development and Cultural Change.

Abdulai, S., Nkegbe, P. K., & Donkoh, S. A. (2013). Technical efficiency of maize production in Northern Ghana. African Journal of Agricultural Research, 8 (43), 5251 - 5259

Addison, M., Ohene-Yankyera, K., & Fredua-Antoh, E. (2016). Gender Role, Input Use and Technical Efficiency among Rice Farmers at Ahafo Ano North District in Ashanti Region of Ghana. Journal of Food Security, 4(2), 27-35. doi:10.12691/jfs-4-2-1

Altieri, M. A., Nicholls, C. I., & Ponti, L. (2008). Crop Diversification Strategies for Pest Regulation in IPM Systems. Integrated Pest Management: Concepts, Tactics, Strategies and Case Studies.

Ang, P. (2010). Philippine Coffee Situation and Outlook. GAIN Report. Retrieved from

Arroyo, J. C. T. (2020). Analysis and design of enterprise resource planning system for a coffee shop. International Journal of Advanced Trends in Computer Science and Engineering.

Asian Development Bank (ADB). (2019, April). REG: Sustainable Financing of Small-Scale Agriculture in South Asia and Southeast Asia. Retrieved from

Awotide, B., Abdoulaye, T., Alene, A., & Manyong, V. (2015). Impact of Access to Credit on Agricultural Productivity: Evidence from Smallholder Cassava Farmers in Nigeria. International Conference of Agricultural Economists.

Bamber, P., Daly, J., & Gereffi, G. (2017). The Philippines in the Coffee Global Value Chain. Center on Globalization, Governance & Competitiveness, Duke University. Retrieved from

Binam, J. N., Sylla, K., Diarra, I., & Nyambi, G. (2003). Factors Affecting Technical Efficiency among Coffee Farmers in Cote d’Ivoire: Evidence from the Centre West Region. African Development Review, 15(1), 66–76.

Boyd, C. (2015). Common Coffee Pests and Pesticides. Chem Service Inc. Analytical Standards and Certified References Standards. Retrieved from

Bozoǧlu, M., & Ceyhan, V. (2007). Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey. Agricultural Systems.

Bureau of Plant Industry (BPI). (2017). 2017 - 2022 Philippine Coffee Industry Roadmap. Retrieved from,%202017.pdf

Byrareddy, V., Kouadio, L., Mushtaq, S., & Stone, R. (2019). Sustainable production of robusta coffee under a changing climate: A 10-year monitoring of fertilizer management in coffee farms in Vietnam and Indonesia. Agronomy.

Cardenas, G., Vedenov, D. V., & Houston, J. E. (2005). Analysis of Production Efficiency of Mexican Coffee-Producing Districts. 2005 Annual meeting, July 24-27, Providence, RI 19470, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). doi: 10.22004/ag.econ.19470

Cerda, R., Avelino, J., Gary, C., Tixier, P., Lechevallier, E., & Allinne, C. (2017). Primary and secondary yield losses caused by pests and diseases: Assessment and modeling in coffee. PLoS ONE.

Coelli, T. (1996). A Guide to DEAP Version 2.1: Data Computer Analysis (Computer) Program. CEPA Working Papers.

Coelli, T. (2016). A Guide to DEAP Version 2.1: A Data Envelopment Analysis (Computer) Program. In CEPA Working Paper 96/08 ABSTRACT.

Coelli, T. J., Prasada Rao, D. S., O'Donnell, C. J., & Battese, G. E. (2005). An Introduction to Efficiency and Productivity Analysis (2nd ed.). New York: Springer Science + Business Media Inc.

Coelli, T. J., & Prasada Rao, D.S. (2003, August 14). Total Factor Productivity Growth in Agriculture: A Malmquist Index Analysis of 93 Countries, 1980-2000. Retrieved from

Coste, R. (2018, November 23). Coffee Production. Encyclopædia Britannica. Retrieved from

Creswell, J. (2013). Qualitative, quantitative, and mixed methods approach. In Research design.

Danso-Abbeam, G., & Baiyegunhi, L. J. S. (2020). Do farm-level technical efficiency and welfare complement each other? Insight from Ghana’s cocoa industry. Journal of Economic Structures.

Dao, G. T. N. (2013). An Analysis of Technical Efficiency of Crop Farms in The Northern Region of Vietnam.

de Queiroz, V. T., Azevedo, M. M., da Silva Quadros, I. P., Costa, A. V., do Amaral, A. A., dos Santos, G. M. A. D. A., Juvanhol, R. S., de Almeida Telles, L. A., & dos Santos, A. R. (2018). Environmental risk assessment for sustainable pesticide use in coffee production. Journal of Contaminant Hydrology.

Department of Agriculture (DA) - Coffee. (2013). Retrieved December 2016, from Department of Agriculture- HVCDP:

Department of Agriculture (DA). (n.d.). The Philippine Coffee Industry. Retrieved 2018, from

Department of Agriculture XI. (n.d.). Regional Profile. Retrieved from Department of Agriculture XI:

Department of Trade and Industry XI (DTI – XI). (2018). Performance Report 2018. Region XI: DTI XI.

Department of Trade and Industry (DTI). (2018, September). DTI, DA Holds First Regional Coffee Forum. Retrieved from Department of Trade and Industry: Enabling Business, Empowering Consumers:

Department of Trade and Industry (DTI). (2017). The Philippines in the Coffee Global Value Chain. Department of Trade and Industry – Bureau of Trade and Industrial Policy Research (BTIPR).

Dessale, M. (2019). Analysis of technical efficiency of small holder wheat-growing farmers of Jamma district, Ethiopia. Agriculture and Food Security.

Diega, A. S. (2014, October 12). BAS: Coffee, cacao production declined steadily in 2009-2013. Retrieved from Business Mirror:

Essilfie, F., Asiamah, M. T., & Nimoh, F. (2011). Estimation of farm level technical efficiency in small scale maize production in the Mfantseman Municipality in the Central Region of Ghana: A stochastic frontier approach. Journal of Development and Agricultural Economics, 3(14), 645-654. doi:10.5897/JDAE11.069

Farrell, M. J. (1957). The Measurement of Productive Efficiency. Journal of the Royal Statistical Society. Series A (General).

Food and Agriculture Organization (FAO). (1977). Coffee "Le caféier". FAO Economic and Social Development Series, 3/23. Retrieved from

Furi, T., & Bashargo, G. (2016). Analysis of Technical Efficiency of Coffee Production on Small Holder Farmers in Case of Sasiga & Limu Districts of East Wollega Zone. Journal of Economics and Sustainable Development, Vol.7, No.15. Retrieved from

Goldsmith, P. D., Gunjal, K., & Ndarishikanye, B. (2004). Rural-urban migration and agricultural productivity: The case of Senegal. Agricultural Economics.

Hamidi, S. (2016). Measuring efficiency of governmental hospitals in Palestine using stochastic frontier analysis. Cost Effectiveness and Resource Allocation.

Huong, N., & Anh, L. (2019). Factors Affecting the Technical Efficiency of Coffee Producers - Case Study in Dak Lak Province, Vietnam. International Journal of Economics, Commerce and Management, VII (11). Retrieved from

Inso, F. A. (2018). Declining Farmer Population. Cebu Daily News (Inquirer). Retrieved from

Itam, K. O., Ajah, E. A., Ofem, U. I., & Abam, O. E. (2015). Technical Efficiency Analysis of Small Scale Cassava Farmers in Cross River State, Nigeria: A Stochastic Production Frontier Approach. Applied Economics and Finance.

Kamau, V., Ateka, J., & Mbeche, R. M. (2017). Assessment of Technical Efficiency of Smallholder Enterprises in Muranga, Kenya Coffee Farming. Retrieved from

Li, M., & Sicular, T. (2013). Aging of the labor force and technical efficiency in crop production: Evidence from Liaoning province, China. China Agricultural Economic Review.

Nazario, D. (2020). Farmers not keen on children following in their footsteps – study. Manila Bulletin. Retrieved from,at%20the%20individual%20age%20level.

Nchare, A. (2007). Analysis of Factors Affecting the Technical Efficiency of Arabica Coffee Producers in Cameroon. Research Papers.

Ngango, J. (2018, June). Analysis of Technical Efficiency among Small Scale Coffee Farmers in the Northern Province of Rwanda. Retrieved from Google Scholar:

Ngango, J., & Kim, S. G. (2019). Assessment of technical efficiency and its potential determinants among small-scale coffee farmers in Rwanda. Agriculture (Switzerland).

Nginyangi, J. M. (2011). Economic Efficiency of Smallholder Coffee Production in Mathira District, Kenya. Mathira, Kenya. Retrieved April 9, 2017, from

Nguyen, L. D., Raabe, K., & Grote, U. (2015). Rural-Urban Migration, Household Vulnerability, and Welfare in Vietnam. World Development.

Ntshangase, N. L., Muroyiwa, B., & Sibanda, M. (2018). Farmers’ perceptions and factors influencing the adoption of no-till conservation agriculture by small-scale farmers in Zashuke, KwaZulu-Natal province. Sustainability (Switzerland).

Nyagaka, D. O., Obare, G. A., Omiti, J. M., & Nguyo, W. (2010). Technical Efficiency in Resource Use: Evidence from Smallholder Irish Potato Farmers in Nyandarua North District, Kenya. African Journal of Agricultural Research.

Palis, F. G. (2020). Aging Filipino Rice Farmers and their Aspirations for their Children. Philippine Journal of Science.

Pantzios, C., Rozakis, S., & Tzouvelekas, V. (2002). Assessing the Perspectives of EU Cotton Farming: Technical and Scale Efficiencies of Greek Cotton Growers. European Association of Agricultural Economists.

Perreault, K. (2011). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Manual Therapy, 16(1), 103.

Philippine Statistics Authority (PSA). (2018). Trends in Agricultural Wage Rates. Philippine Statistics Authority (PSA). Retrieved from

Philippine Statistics Authority (PSA). (2018). Selected Statistics on Agriculture 2018. The Government, Philippine Statistics Authority. Retrieved from

Philippine Statistics Authority (PSA). (2018, April 26). Davao Region’s economy expands by 10.9 percent in 2017. Retrieved from Philippine Statistics Authority Region XI - Davao Region:

Philippine Statistics Authority (PSA). (2016, August). Selected Statistics on Agriculture 2016. Retrieved from

Philippine Statistics Authority (PSA). (2017). 2016 Commodity Fact Sheet. Philippine Statistics Authority.

Philippine Statistics Authority (PSA). (2019). Selected Statistics on Agriculture 2019. Quezon City: Philippine Statistics Authority. Retrieved from

Poudel, K. L., Johnson, T. G., Yamamoto, N., Gautam, S., & Mishra, B. (2015). Comparing Technical Efficiency of Organic and Conventional Coffee Farms in Rural Hill Region of Nepal using Data Envelopment Analysis (DEA) approach. Organic Agriculture.

Poudel, K. L., Yamamoto, N., & Johnson, T. G. (2012, August). Comparing Technical Efficiency of Organic and Conventional Coffee Farms in Nepal using Data Envelopment Analysis (DEA) Approach. Retrieved from

Quisumbing, A. R. (1996). Male-female Differences in Agricultural Productivity: Methodological issues and empirical evidence. World Development.

Rahji, M., Akintola, J., & Tiamiyu, S. (2009). Technology Adoption and Productivity Difference among Growers of New Rice for Africa in Savanna Zone of Nigeria. Tropicultura.

R.Z. Margate, J.N. Maravilla, R.M. Ebuna, & M.N. Eroy (1994). Response of Coconut and Coffee to Fertilizers Applied on Either or Both Crops in An Intercropping System. CORD.

Sarmiento, B. S. (2015a). Mindanao Still Lords Over PHL Coffee Production. MindaNews. Retrieved from

Sarmiento, R. S. (2015b, September 30). Business World Online. Retrieved November 2016, from Coffee industry hampered by lack of know-how, quality seedlings:

Simar, L., & Wilson, P. W. (1998). Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models. Management Science.

Tampuli Abukari, A.-B., & Alemdar, T. (2019). Measuring the Technical and Cost Efficiencies of Maize Farming in The Northern Region of Ghana: Deterministic and Stochastic Approaches. Agricultural Social Economic Journal.

Tan, G. N. D. (2021). A Business-Model Approach on Strategic Flexibility of Firms in a Shifting Value Chain: The Case of Coffee Processors in Amadeo and Silang, Cavite, Philippines. Global Journal of Flexible Systems Management.

Tauer, L. (1995). Age and Farmer Productivity. Review of Agricultural Economics.

Tenaye, A. (2020). Technical Efficiency of Smallholder Agriculture in Developing Countries: The Case of Ethiopia. Economies.

Tolentino, T. R., & Hernandez, A. A. (2019). Assessment of Predictive Models for Coffee Production in the Philippines. International Conference on ICT and Knowledge Engineering.

Varian, H. R. (1984, May). The Nonparametric Approach to Production Analysis. Econometrica, 52, 579-597. Retrieved from

Vitale, P. P., Vitale, J., & Epplin, F. (2019). Factors affecting efficiency measures of western great plains wheat dominant farms. Journal of Agricultural and Applied Economics.

William, M. (2006). Organizing Academic Research Papers: Types of Research Designs. Sacredheartlibrary. Retrieved from

Winston, E., Op de Laak, J., Marsh, T., Lempke, H., & Chapman, K. (2005). Arabica coffee manual for Lao-PDR. Food and Agriculture Organization of the United Nations.

Wollni, M., & Brümmer, B. (2012). Productive efficiency of specialty and conventional coffee farmers in costa rica: Accounting for technological heterogeneity and self-selection. Food Policy.

Zhang, S., Deng, W., Peng, L., Zhou, P., & Liu, Y. (2020). Has Rural Migration Weakened Agricultural Cultivation? Evidence from the Mountains of Southwest China. Agriculture (Switzerland).



  • There are currently no refbacks.

Copyright (c) 2022 Leomar M. Sabroso, Adrian M. Tamayo

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.