Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea

Abstract

Smallholder farming systems in Papua New Guinea are characterised by an integrated set of cash cropping and subsistence food cropping activities. In the Highlands provinces, the subsistence food crop sub-system is dominated by sweet potato production. Coffee dominates the cash cropping sub-system, but a limited number of food crops are also grown for cash sale. The dynamics between sub-systems can influence the scope for complementarity between, and technical efficiency of, their operations, especially in light of the seasonality of demand for household labour and management inputs within the farming system. A crucial element of these dynamic processes is diversification into commercial agricultural production, which can influence factor productivity and the efficiency of crop production where smallholders maintain a strong production base in subsistence foods.In this study we use survey data from households engaged in coffee and food crop production in the Benabena district of Eastern Highlands Province to derive technical efficiency indices for each household over two years. A stochastic input distance function approach is used to establish whether diversification economies exist and whether specialisation in coffee, subsistence food or cash food production significantly influences technical efficiency on the sampled smallholdings.Diversification economies are weakly evident between subsistence food production and both coffee and cash food production, but diseconomies of diversification are discerned between coffee and cash food production. A number of factors are tested for their effects on technical efficiency. Significant technical efficiency gains are made from diversification among broad cropping enterprises.

Economic Analisys of a Coffee-Banana System of a Family-Based Agriculture at the Atlantic Forest Zone, Brazil

“…Other study reports that the human labor either in coffee agroforestry Graaff;Puleman, 2012) or conventional and organic (Siqueira;Ponciano, 2011) systems in the same region is the largest part of the cost as it is in other coffee production regions, where household labor is one of the most important input of family farmers (Coelli;Fleming, 2004). On those systems, coffee also requires most of services, especially in post-harvest activities and the input costs vary with the adopted management with the Bananas require labor every month, but on coffee crop there is a concentration of labor demand in the (Figure 1), the harvest season.…”

“…In addition, in the long run the growing supply of 'sustainable certificated coffee' (e.g. organic, fairtrade, forest friendly) will reduce price premiums (Killian et al, 2006) or the farmers will not actually receive this premium price (Bacon, 2005), while the diversification of coffee with another cash crop can economically support family farming (Coelli;Fleming, 2004;González;Perilla;Pulido, 2010).…”

“…This complementarity between coffee and banana labor demand is a very important feature of the system. The smallholder's diversification in cash production allows farmers to manage activities in order to meet seasonal demands of labor throughout the year (Coelli;Fleming, 2004).…”

“…Coffee-based agroforestry systems (AFS) are associated with environmental resources conservation, less inputs needs and, a focus on both more sustainable production and generation other options of income for family farming (Coelli;Fleming, 2004;González;Perilla;Pulido, 2010;Perdoná et al, 2013).…”

“…Agrotec., Lavras, v.39, n.3, p.232-239, maio/jun., 2015Pulido, 2010Graaff;Puleman, 2012). Smallholders rely on flexibility of their production systems, which comes from diversification of farming activities (Coelli;Fleming, 2004). In the Atlantic Forest region of Minas Gerais state, predominantly a hilly landscape, Arabica coffee is the major source of income for the family farming Graaff;Puleman, 2012).…”