Applying the Malmquist Productivity Index Model to Assess the Performance of the Coffee Enterprise in DakLak Vietnam

Abstract

To assess the performance of the coffee industry in DakLak, this study focused on three aspects in terms of efficiency change, productivity growth, and technological change based on the concept of the DEA - Malmquist model. A total of seven companies are chosen with realistic data collected from their company’s website over the period 2020–2022. The empirical results showed that there are 4 companies with an efficiency change greater than 1 and 3 companies with an efficiency change of less than 1. However, the decomposition of total factor productivity change (increasing by 6.12%) showed that technical change has decreased by 4.83% while technical efficiency increased by 14.59% during the period, arising mainly from technical efficiency. This study provides empirical research on the efficiency of the Vietnamese coffee industry to get a brief view of how efficient the coffee industry is, and what needs to change to improve the performance of this sector. Furthermore, this paper is very valuable for both academic study and real value.