Description

We study the efficiency of smallholder coffee farms in Vietnam. Data from a 2004 survey of farms in two districts in Dak Lak Province are used in a two-step analysis. In the first step, technical and cost efficiency measures are calculated using DEA. In the second step, Tobit regressions are used to identify factors correlated with technical and cost inefficiency. Results indicate that small farms were less efficient than large farms. Inefficiencies observed on small farms appear to be related, in part, to the scale of investments in irrigation infrastructure.