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Production efficiency and commercialization channels among small-scale farmers: Evidence for raspberry production in Central Chile

Roberto Jara-Rojas, Boris Bravo-Ureta, Daniel Solis () and Daniela Martinez

No 229330, 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association

Abstract: Raspberry production has become a significant cash crop that supports the livelihood of many small-scale growers in Central Chile. Almost 100% of raspberry production is exported, and the cultivation of this crop has put pressure on smallholder farmers to integrate into the modern agri-food chain system. The goal of this article is to analyze technical efficiency (TE) levels for a sample of 139 small-scale raspberry farmers in the Maule region of Chile, the main production area for this crop in the country. One focus of this study is to evaluate the association between TE -understood as an indicator of managerial performance- and farmers’ decisions to sell their production directly to the agri-industry or indirectly through an informal middleman. Using a stochastic production frontier model we find that the commercialization decision plays an important role in the productivity and revenue of small-scale raspberry producers. The analysis also reveals a positive relationship between TE levels and income among experienced and trained farmers. The role of implementing food quality and safety standards on farm income is also discussed.

Keywords: Commercialization; stochastic production frontiers; technical efficiency; small-scale farmers.; International Development; Production Economics; Productivity Analysis; D24; O13; Q1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-eff
Date: 2016-02
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Handle: RePEc:ags:saea16:229330