Efficiency of corn producers in Sinaloa: a methodological proposal
DOI:
https://doi.org/10.29312/remexca.v9i3.1222Keywords:
corn production, stochastic frontier model, technical efficiencyAbstract
Given the importance that the state of Sinaloa has in corn production at a national level, it is necessary to analyze the conditions under which the Sinaloa producer participates in the market and estimate its level of technical efficiency. The relevance of knowing the technical efficiency of the producer lies in the fact that a lack of this implies a waste of resources that affects the yield and the reduction of average costs. This essay analyzes the disadvantageous situation in which the producer participates in the market, since the price of corn increases at a comparatively lower rate than that of input prices. In addition, there are other actors in the value chain that obtain a higher income with a lower financial risk. The stochastic frontier model is proposed to estimate the level of efficiency and a literature review is offered that supports the choice of the econometric model. Likewise, the equation to be estimated is presented considering the cultivation practices in force in the state of Sinaloa. It is concluded that it is of interest to estimate the technical efficiency to know the available improvement space given the current technology in the study region and that the stochastic frontier model is a viable alternative to achieve said objective.
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