Alejandra Engler

Risk preferences estimation for small raspberry producers in the Bío-Bío Region, Chile

A B S T R A C T Decisions are strongly influenced by risk and risk preferences of decision makers; however, in Chile there are few studies in the agricultural sector focused on this topic. The present paper analyzes the risk preferences of small producers of raspberries (Rubus idaeus L.) and the production function associated with their production system in the Bio-Bio Region of Chile. Under a mean-variance approach, the estimation procedure uses a flexible utility function to incorporate a variety of risk preference alternatives. Three different estimation procedures were used: Least Squares Estimation, Seemingly Unrelated Regression and Full Information Maximum Likelihood, which revealed the same conclusions. Results showed that small farmers are risk averse (γ = 0.104) and present increasing relative and absolute aversion to risk (θ = 0.099 < 1 and θ < γ, respectively). The hypotheses of risk neutrality (γ = 0) and constant absolute risk aversion (θ = 1) were rejected with 94% and 99% confidence, respectively. The chosen function of production is the Cobb Douglas type, because it presents a better adjustment, and the relevant factors are fertilizer quantity per hectare, the experience of the producer and the planted area. This function presents decreasing returns to scale, then β2 + β3 + β4 is equal to 0.18. The hypothesis of constant returns to scale is rejected with 99% confidence.

An analysis of factors affecting the adoption of economic and productive data recording methods of Chilean farmers.

Integration of the Chilean domestic economy into international markets has created the need to incorporate more technology, information, and management tools and to generate better entrepreneurial skills at the farm level. These changes require the development of strategic capabilities and farmer changes in attitude. The goal for farmers is to be more prepared for the decision-making process and to have adequate evaluation and control systems to face the complexity of the farm business. The literature suggests that using management tools positively correlates with profits and concludes that management skills are positively related to farmers’ well-being. Survey information on 211 farmers from central and southern Chile was used to estimate a probit model where the dependent variable was record-keeping by farmers. The results show that the farmers’ educational level, age, membership a Technological Transfer Group, land leasing, and the farmers’ own perception of their aversion to risk are statistically significant variables in the model. The model goodness of fit is 0.41, and the model has good predictive power for groups of farmers. La integracion de la economia chilena a los mercados internacionales ha creado la necesidad de incorporar mas tecnologia, informacion, nuevas herramientas de gestion y generar nuevas habilidades empresariales a nivel de predio, lo cual implica el desarrollo de capacidades estrategicas y un cambio en la actitud por parte de los agricultores. El objetivo para el agricultor es estar mejor preparados para la toma de decisiones y contar con sistemas de evaluacion y control adecuados a la complejidad del negocio agricola. La literatura sugiere que el uso de herramientas de gestion tiene una correlacion positiva con los beneficios, lo que permite concluir que la capacidad de gestion incrementa las posibilidades de buenos resultados. A partir de una encuesta a 211 agricultores de la zona centro y centro sur de Chile se estimo un modelo probit, donde la variable dependiente corresponde a productores que mantienen registros digitales. Los resultados muestran que el nivel educacional del productor, edad, pertenencia a un grupo de Transferencia Tecnologica, arriendo de tierra y la percepcion personal respecto a aversion al riesgo son variables estadisticamente significativas. La bondad de ajuste del modelo es de 0,41, y presenta un buen nivel de prediccion, para agricultores con diferente metodo de registro.

Assessing long- and short-term trends in cereal yields: the case of Chile between 1929 and 2009

A. Engler, and A. del Pozo. 2013. Assessing long- and short-term trends in cereal yields: the case of Chile between 1929 and 2009. Cien. Inv. Agr. 40(1):55-67. Cereal grain yields have increased worldwide during the 20 th century as a consequence of plant breeding, improved cultural practices and intensive use of inputs. However, there is evidence that there are differences in yield pattern evolution across countries and cereals. The purpose of this study was to compare trends in the yields of the most commonly produced cereals in Chile, namely wheat, oat, barley, maize and rice, to identify similarities in trends across crops and to estimate long-term growth rates in the yields and their changes over time. Data for wheat, barley, oat, rice and maize yields between 1929 and 2009 were obtained from the Chilean Oficina de Estudios y Politicas Agrarias (ODEPA). A first-order autoregressive (AR1) model with trend was applied to a time series analysis of yield data to estimate the relative rates of yield increase and short-run adjustments to yield progress. There was a break in the time series for wheat, barley and oat in approximately 1980. Following this break, the yields exhibited notable increases, with these three cereals reaching similar yields (4.4–4.7 ton ha -1 in the last decade). The long-term relative rate of yield was approximately 0.6–1% before the break (approximately 1980) and slightly less after the break. Rice yields decreased from the thirties to the sixties and have increased since then. The maize yield was very low before the sixties (< 2 t ha -1 ) but has since increased steadily, reaching an average of 10.8 t ha -1 in the last decade. Economic and agronomic changes that have taken place in the country explain the break observed in the cereal yield trends.

HARVEST LABOR QUALITY AND PRODUCTIVITY:CASE STUDY OF CHERRY GROWING IN CHILE

In Chile, the cherry tree has been one of the fastest growing and most profitable crops in the last ten years. However, increasing production costs, the scarcity of hired labor, and unfavorable exchange rates have reduced the productivity and competitiveness of the Chilean fruit sector. The aim of this article is to evaluate the harvest labor quality in cherry growing in Chile through the use of productivity indicators. A harvest labor evaluation system (HLES) was designed and four indicators were measured: Average Weight of Harvested Box, Average Daily Production per Worker, Percent of Export Fruit, and Percent of Fruit Discarded. Significant differences werefound between the 2010/11 season (with the HLES implementation) and the previous seasons without HLES. The average worker yield, average weight of a filled box, and fruit quality improved, while the amount of discarded fruit decreased. Hired labor management in agriculture is crucial for improving the productivity of the fresh fruit export producers. The use of HLES and the adoption of new technologies could help to solve the competitiveness problem in the Chilean fruit sector.

Food Safety Management Through the Lens of Hybrids: The Case of Fresh Fruit and Vegetable Shippers

Managing the pesticide safety risk to provide end markets with safe fruit and vegetables raises complex issues due to the diversity and stringent nature of public and private safety requirements and the high cost of controlling the product and the production process. More often than not, this leads to the development of diversified and more integrated relationships between growers and their buyers. Our paper is a case study of the hybrid forms underlying such relationships. It begins by developing the analytical framework, drawing on transaction cost, positive agency, and property rights theories with a special focus on the model proposed by Menard (The Handbook of Organizational Economics, Princeton, 1066–1108, 2013), positioning the hybrid forms along the two dimensions of decision rights and strategic resources. It then presents a selection of quantitative and qualitative findings obtained from data collected through face-to-face interviews with managers of fresh produce shipping firms in France and Chile. Both case studies confirm that the level of centralization increases with the buyer’s commercial reputation, the level of customer safety requirements (a key component in the marketing strategy of the buyer), and the level of asset specificity which is mostly embedded in the technical assistance and training provided by the buyer to the growers. Moreover, our paper establishes a clear divide between firms that only control product safety at the delivery stage and firms that also control safety throughout the production process and may take decisions on behalf of the grower before harvesting.

Efficient use of Water Resources in Vineyards: A Recursive joint Estimation for the Adoption of Irrigation Technology and Scheduling

Water constraints are becoming a major restriction for different economic sectors. The agricultural sector is one of the most affected, but according to experts, the use of irrigation technologies and scheduling can keep productivity high while diminishing the use of water resources. Although irrigation technology is available, for various reasons the rate of adoption is rather low. This article uses a recursive bivariate probit model to examine the impact of social, human, and physical capital on the adoption of irrigation technology and scheduling. The study was conducted in vineyard farms in the Maule and O’Higgins regions of Chile, from which a sample of 452 large, medium, and smallholders was drawn. The average planted area is 37 hectares, ranging from 0.5 to 810 hectares. The adoption rate of irrigation technology is 43 % and for scheduling instruments, 23 %. Results show that adopting irrigation technology increases the chance of adopting scheduling by 31 % and that these adoption decisions are jointly made. While size of the vineyard is relevant in irrigation technology adoption, it is not for scheduling and, in contrast, the use of the Internet is relevant for adopting scheduling but not for irrigation technology. A relevant result is that networks and trust are important factors in explaining the adoption of both technologies.

Effects of the transaction characteristics on the side of dependence in a context of vertical coordination: The case of fresh produce exports from Chile to Europe

Abstract While organization theories acknowledge the influence of specific assets on dependence and increasingly represent the latter as a structure of mutual dependence (dependence of A on B and dependence of B on A), there is, to the best of our knowledge, no empirical test concerning the impact of specific assets on a structure of dependence. Our chapter aims to fill this gap. It is all the more original in that it considers a case study where dependence changes sides according to the characteristics of the transaction. We examine the dependence between Chilean exporters and European importers when trading fresh produce. Such dependence originates with the need for just-in-time coordination and compliance with a compelling demand in a context of high price uncertainty. Using a unique dataset from international trade in fresh produce between Chile and the rest of the world, we justify the use of a concentration sales ratio as a proxy for dependence and test the influence of a variety of specific assets on the side of dependence by using both categorical and dimensional approaches. Original findings show that certain transaction attributes have a strong influence on the side of dependence. In particular, the higher the frequency and the level of specific assets such as volume, niche varieties, and joint sales with other products, in the transaction, the greater the likelihood of a higher ratio of dependence for the importer rather than the exporter. Conversely, in the event of low levels of specific assets and less frequent operations, dependence tends to be greater on the side of the exporter.