Charcoal production profitability and technical efficiency in the Sierra Nevada of Puebla, Mexico

This study aimed to analyze the technological and economic aspects of charcoal production to suggest opportunities for improving production process efficiency and reducing potential environmental impact. The research was conducted in San Nicolás de los Ranchos, located in the Sierra Nevada of Puebla. Data were obtained through 40 interviews with charcoal producers, key informants, and field visits. Project analysis and stochastic frontier analysis were employed to estimate both the profitability and technical efficiency of charcoal production. The average age of charcoal producers was 43 years, with an average of 15 years of experience in charcoal production. Elementary education accounted for 63 % of respondents, while 37 % had completed junior high school. Of the interviewees, 42 % were exclusively dedicated to charcoal production, while the remaining respondents engaged in complementary activities. The production activity is carried out year-round (68 %) with an average of 25 burns. The analysis revealed a benefit-cost ratio (BCR) of 1.6 and technical efficiency (TE) ranging from 0.50 to 0.88. Key variables explaining TE included education, experience, kiln size, and land area owned by the producer. The findings indicate significant room for improving efficiency, particularly for small-scale producers.