Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems?

This study assesses the economic viability of different coffee production strategies in Costa Rica and Guatemala, comparing intensive systems with shaded agroforestry approaches. Using a typology based on levels of intensification and sustainability, the authors applied a stochastic cash flow model...

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Detalles Bibliográficos
Autores principales: Lanza, Gracia, Mercado, Leida
Formato: Artículo
Lenguaje:Inglés
Publicado: Elsevier 2025
Materias:
Acceso en línea:https://repositorio.catie.ac.cr/handle/11554/12811
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author Lanza, Gracia
Mercado, Leida
author_browse Lanza, Gracia
Mercado, Leida
author_facet Lanza, Gracia
Mercado, Leida
author_sort Lanza, Gracia
collection Repositorio CATIE
description This study assesses the economic viability of different coffee production strategies in Costa Rica and Guatemala, comparing intensive systems with shaded agroforestry approaches. Using a typology based on levels of intensification and sustainability, the authors applied a stochastic cash flow model based on ten years of farm-level survey data, including information on costs, prices, and yields. Results indicate that high-productivity systems—with significant investment and moderate shade levels—achieve the highest Net Present Value (NPV) under future coffee price scenarios. Among low-investment systems, those with high shade cover yield a higher (and positive) NPV than low-shade systems, which on average produce negative returns despite similar investment levels. Diversification, particularly with high-value export avocados, marginally improves NPV, while other forms of diversification have limited economic impact. Although high-productivity systems incur greater production costs, they generally offer higher probabilities of achieving positive net income and living wages, except in cases of severe price drops (e.g., a 50% decline in coffee prices). Conversely, a 50% increase in coffee prices would be necessary for all farmers to achieve positive net cash income and, in the case of intensive systems, approach a living wage threshold. The study concludes that high-investment, high-productivity coffee systems are compatible with shaded agroforestry and are more likely to ensure economic success under most market conditions. For farmers with limited capacity to invest, high-shade systems offer more stable and positive returns across a wider range of price scenarios than low-shade alternatives.
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institution Centro Agronómico Tropical de Investigación y Enseñanza
language Inglés
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spelling RepoCATIE128112025-05-15T22:54:28Z Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems? Lanza, Gracia Mercado, Leida Coffee agroforestry Ecosystem services Shaded coffee Sustainable agricultural intensification Probabilistic cash-flow analysis Sede Central ODS 12 - Producción y consumo responsables This study assesses the economic viability of different coffee production strategies in Costa Rica and Guatemala, comparing intensive systems with shaded agroforestry approaches. Using a typology based on levels of intensification and sustainability, the authors applied a stochastic cash flow model based on ten years of farm-level survey data, including information on costs, prices, and yields. Results indicate that high-productivity systems—with significant investment and moderate shade levels—achieve the highest Net Present Value (NPV) under future coffee price scenarios. Among low-investment systems, those with high shade cover yield a higher (and positive) NPV than low-shade systems, which on average produce negative returns despite similar investment levels. Diversification, particularly with high-value export avocados, marginally improves NPV, while other forms of diversification have limited economic impact. Although high-productivity systems incur greater production costs, they generally offer higher probabilities of achieving positive net income and living wages, except in cases of severe price drops (e.g., a 50% decline in coffee prices). Conversely, a 50% increase in coffee prices would be necessary for all farmers to achieve positive net cash income and, in the case of intensive systems, approach a living wage threshold. The study concludes that high-investment, high-productivity coffee systems are compatible with shaded agroforestry and are more likely to ensure economic success under most market conditions. For farmers with limited capacity to invest, high-shade systems offer more stable and positive returns across a wider range of price scenarios than low-shade alternatives. 2025-05-14T20:50:32Z 2025-05-14T20:50:32Z 2023-12-11 Artículo https://repositorio.catie.ac.cr/handle/11554/12811 openAccess en Agricultural Systems https://doi.org/10.1016/j.agsy.2023.103814 18 páginas application/pdf Elsevier
spellingShingle Coffee agroforestry
Ecosystem services
Shaded coffee
Sustainable agricultural intensification
Probabilistic cash-flow analysis
Sede Central
ODS 12 - Producción y consumo responsables
Lanza, Gracia
Mercado, Leida
Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems?
title Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems?
title_full Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems?
title_fullStr Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems?
title_full_unstemmed Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems?
title_short Shade versus intensification: Trade-off or synergy for profitability in coffee agroforestry systems?
title_sort shade versus intensification trade off or synergy for profitability in coffee agroforestry systems
topic Coffee agroforestry
Ecosystem services
Shaded coffee
Sustainable agricultural intensification
Probabilistic cash-flow analysis
Sede Central
ODS 12 - Producción y consumo responsables
url https://repositorio.catie.ac.cr/handle/11554/12811
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AT mercadoleida shadeversusintensificationtradeofforsynergyforprofitabilityincoffeeagroforestrysystems