Productivity and technological change in the sugarcane agribusiness in Mexico

Authors

  • Ilich Miguel Santiago Zárate Postgrado de la División de Ciencias Económico Administrativas-UACH. Carretera México-Texcoco km 38.5, Chapingo, México. CP. 56230. Tel. 951 3979433
  • Miguel Ángel Martínez Damián Colegio de Posgraduados. Carretera México-Texcoco km 36.5, Texcoco, Estado de México. CP. 56230. Tel. 55 58045900.
  • Cristóbal Martín Cuevas Alvarado Consultor independiente. Calle Arboledas 28, Montecillo, Texcoco, Estado de México. CP. 56264. Tel. 55 61651251
  • Ramón Valdivia Alcala Postgrado de la División de Ciencias Económico Administrativas-UACH. Carretera México-Texcoco km 38.5, Chapingo, México. CP. 56230. Tel. 951 3979433
  • Mario Ivan García Hernández Postgrado de la División de Ciencias Económico Administrativas-UACH. Carretera México-Texcoco km 38.5, Chapingo, México. CP. 56230. Tel. 951 3979433
  • Jesdel Hernández Toscano Postgrado de la División de Ciencias Económico Administrativas-UACH. Carretera México-Texcoco km 38.5, Chapingo, México. CP. 56230. Tel. 951 3979433

DOI:

https://doi.org/10.29312/remexca.v12i6.2692

Keywords:

technical efficiency, efficient frontier, Malmquist index, total factor productivity

Abstract

The sugarcane agribusiness in Mexico is important due to its impact on employment and linkages in the economies of 267 municipalities of 15 states. The objective of this research was to analyze the total factor productivity, technical efficiency and technological change of sugarcane mills in Mexico. The method used was the Malmquist index, which measures changes in productivity over time and breaks it down into changes in efficiency and changes in technology under the assumptions of input orientation and constant returns to scale. The analysis used balanced panel data for the harvest period 2006/07-2015/16. The results show that at the level of decision-making units, the case of the El Dorado sugar mill in Sinaloa stands out, whose cumulative percentage change in its technical efficiency was 4.4%, in technical progress and innovation of 21.7% and a total productivity of the factors of 27%. The reverse situation occurs with the San Miguel del Naranjo sugar mill, whose cumulative percentage change in its technical efficiency grew by -10.20%, technological progress and innovation by -0.30% and its total factor productivity of -10.40%. The general conclusion is that for 20 sugar mills that operated in the study period, productivity grew at negative rates and for 30 it grew at positive rates.

Downloads

Download data is not yet available.

References

Banker, R. D.; Charnes, A. and Cooper, W. W. 1984. Some models for the estimation of technical and scale inefficiencies in data envelopment analysis. Manag. Sci. 30(9):1078-1092. Doi:10.1287/mnsc.30.9.1078. DOI: https://doi.org/10.1287/mnsc.30.9.1078

Bushara, M. and Moneim, A. S. 2016. Evaluation of total factor productivity of Sudanese sugar company farms: a non-parametric analysis 1999-2007. Arabian J. Business Management Review. 6(3):1-4. Doi: 10.4172/2223-5833.1000211.

Caves, D. W.; Christensen, L. R. and Diewert, W. E. 1982. The economic theory of index numbers and the measurement of input, output, and productivity. Econometrica. 50(6):1393-1414. Doi: 10.2307/1913388. DOI: https://doi.org/10.2307/1913388

Charnes, A.; Cooper, W. W. and Rhodes, E. L. 1978. Measuring the efficiency of decision making units. Eur. J. Operational Res. 2(6):429-444. Doi: https://doi.org/10.1016/0377-2217(78)90138-8. DOI: https://doi.org/10.1016/0377-2217(78)90138-8

Coelli, T. 1996. A guide to DEAP. Version 2.1: a data envelopment analysis (computer) program. Centre for efficiency and productivity analysis. University of New England, Australia. http://www.owlnet.rice.edu/~econ380/DEAP.PDF.

Coelli, T. J.; Rao, D. S. P.; O'Donnell, C. J. and Battese, G. E. 2005. An introduction to efficiency and productivity analysis. Kluwer academic publisher. Boston, Massachusetts. 341 p.

CONADESUCA. 2017. Comité nacional para el desarrollo sustentable de la caña de azúcar. Informe estadístico del sector agroindustrial de la caña de azúcar en México zafras 2006-2007/2015-2016. Ciudad de México, México. https://www.gob.mx/conadesuca/articulos/ informe-estadistico-del-sector-agroindustrial-de-la-cana-de-azucar-en-mexico-zafras-2006-2007-2015-2016?idiom=es.

Färe, R.; Grosskopf, S.; Norris, M. and Zhang, Z. 1994. Productivity growth, technical progress and efficiency change in industrialized countries. American Economic Review. 84(1):66-83. Doi: 10.2307/2117971.

Färe, R. and Grosskopf, S. 2000. Theory and applicatrions of directional distance functions. J. Productivity Analysis. 13(1):93-103. Doi: https://doi.org/10.1023/A:1007844628920. DOI: https://doi.org/10.1023/A:1007844628920

Farrell, M. J. 1959. The measurement of productive effiency. J. Royal Statistical Society. 120(3):253-81. Doi: 10.2307/2343100. DOI: https://doi.org/10.2307/2343100

Huguenin, J. M. 2012. Data envelopment analysis (DEA). A pedagogical guide for decision makers in the public sector. Institut de hautes études en administration publique (IHEAP). Laussane, swiis. https://serval.unil.ch/resource/serval:BIB-0FC432348A97.P001/REF.

Kumar, S. and Arora, N. 2012. Evaluation of technical eficiency in Indian sugar industry: an application of full cumulative data envelopment analysis. Eurasian journal of business and economics. 5(9):57-78. https://www.researchgate.net/publication/233627972-Data-envelopment-analysis-of-technical-efficiency-and-productivity-growth-in-the-US-Pacific-Northwest-sawmill-industry.

Lee, K. R. and Leem, B. I. 2010. Malmquist productivity index using DEA frontier in stata. The Stata J. 2(2):1-9. https://www.cgdev.org/sites/default/files/archive/doc/stata/MO/DEA/ malmq.pdf.

Malmquist, S. 1953. Index numbers and indifference curves. Trabajos de estadística. 4(1):209-42. DOI: https://doi.org/10.1007/BF03006863

Mikulás, L. 2010. Mathematical optimization and economic analysis. Springer. New York. 307 p.

Raheman, A.; Qayyum, A. and Afza, T. 2009. Efficiency dynamic of sugar industry of pakistan. The Pakistan Development Review. 48(4):921-938. Doi: 10.30541/v48i4IIpp.921-938.

Rein, Peter. 2012. Ingeniería de la caña de azúcar. Verlag, Albert Bartens. Berlin, Germany. 850 p. https://mpra.ub.uni-muenchen.de/28578/1/MPRA-paper-28578.pdf.

SAGARPA. 2005. Secretaría de Agricultura, Ganadería, Desarrollo Rural Pesca y Alimentación. Ley de desarrollo sustentable de la caña de azúcar. Diario Oficial de la Federación (DOF) del 22 de agosto de 2005. México, DF.

SAGARPA-CONADESUCA. 2014. Secretaría de Agricultura, Ganadería, Desarrollo Rural Pesca y Alimentación-comité nacional para el desarrollo sustentable de la caña de azúcar. Programa Nacional de La Agroindustria de la Caña de Azúcar (PRONAC). Diario Oficial de la Federación (DOF) 02 de mayo de 2014. México, DF.

SIAP-SAGARPA. 2018. Servicio de información agroindustrial y pesquera-secretaria de agricultura, ganadería. Desarrollo rural, pesca y alimentación. Avance de siembras y cosechas. Resumen nacional por cultivo. http://infosiap.siap.gob.mx:8080/agricola-siap-gobmx/AvanceNacionalSinPrograma.do.

Shephard, R. W. 1970. Theory of cost and production function. Princeton University Press. Princeton. 324 p.

Singh, S. P. 2016. Technical change and productivity growth in the Indian sugar industry. Procedia Economics and Finance. 39(1):131-139. Doi: 10.1016/s2212-5671(16)30257-x. DOI: https://doi.org/10.1016/S2212-5671(16)30257-X

Thanassoulis, E. 2001. Introduction to the theory and application of data envelopment analysis. A foundation text with integrated software. Kluwer academic publishers. Norwell, Massachussetts. 296 p. DOI: https://doi.org/10.1007/978-1-4615-1407-7_5

Yet, J.; Que, Y. X.; Li, Y. R. and Xu, L. P. 2016. Evaluating sugarcane productivity in China over different periods using data envelopment analysis and the malmquist index. Sugar Tech. 18(1):478-487. Doi: https://doi.org/10.1007/s12355-016-0427-0. DOI: https://doi.org/10.1007/s12355-016-0427-0

Published

2021-09-20

How to Cite

Santiago Zárate, Ilich Miguel, Miguel Ángel Martínez Damián, Cristóbal Martín Cuevas Alvarado, Ramón Valdivia Alcala, Mario Ivan García Hernández, and Jesdel Hernández Toscano. 2021. “Productivity and Technological Change in the Sugarcane Agribusiness in Mexico”. Revista Mexicana De Ciencias Agrícolas 12 (6). México, ME:1005-17. https://doi.org/10.29312/remexca.v12i6.2692.

Issue

Section

Articles

Most read articles by the same author(s)

1 2 > >>