Economic analysis of coffee production in Cavite, Philippines
1988
Ersando, M.A.
The analysis of profitability shows that coffee farming in Cavite [Philippines] was generally profitable. The net farm income-cost ratios indicate that larger farms were slightly more profitable than smaller farms. Likewise, farms with coffee trees that were older than 10 years were more profitable than farms with younger trees. The estimation of production shows that output was affected by several variables such as crop area, man labor, fertilizer, number of coffee trees and age of coffee trees. The most important of these variables was fertilizer followed by crop area. Resource productivities did not differ significantly among farms grouped according to farm size as well as among farms grouped according to age of coffee trees. Hence resource productivities were not greatly affected by changes in farm size and age of coffee trees. The analysis of resources-use efficiency indicates that profit would still increase with an increase in crop area and fertilizer. On the other hand, further increase in man labor and number of bearing trees tend to reduce profit. Although the results of this study is practically applied to an average farm, these may nevertheless serve as guides in formulating plans for further improvement of coffee production, particularly in Cavite [Philippines].
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