Estimation of Technical Efficiency in the Stochastic Frontier Production Function Model - An Application to the Coffee-Based Mixed Cropping System

Technical efficiency of coffee and inter crops is measured through the estimation of a stochastic frontier production function using the data for the year 2003-04. Variation in technical efficiency index across production units is explained through a number of managerial and estate characteristics variable that ranged from 41 to 98 per cent. The study has observed a positive influence of labour mandays, fertiliser applied, expenditure and plant protection chemicals on yield of coffee and its inter crops. The results indicate fairly high Mean Technical Efficiency for coffee estates at 86 per cent of the frontier yield. The coffee growers have recorded higher technical efficiency (96 per cent) for inter crops such as pepper and orange.