At the turn of the millennium, world coffee prices dropped to their lowest levels in 30 years giving rise to the most severe crisis experienced by the coffee sector. The study evaluates the effects of the coffee crisis on the Costa Rican coffee sector and identifies the factors that influence farmers production and marketing performance. A two-step selection model is applied to analyze farmers participation in specialty markets and cooperatives and the effects on producer prices. Furthermore, a stochastic production frontier is estimated to explore technical efficiency levels of specialty and...