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Assessing the Technical and Allocative Efficiency of Marketing Decisions by U.S. Organic Producers

Luanne Lohr and Timothy Park

No 103365, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association

Abstract: We develop measures of technical and allocative efficiency of producers in marketing certified organic products. A stochastic output distance frontier and the associated revenue share equations are estimated using comprehensive U.S. data on certified organic producers. Farm-level measures of technical efficiency are calculated and factors which enhance performance are identified. Factors that systematically influence allocative efficiency are assessed. The revenue mix of organic producers is systematically inefficient as both male and female producers rely too heavily on revenue from organic markets relative to conventional outlets.

Keywords: Farm Management; Marketing (search for similar items in EconPapers)
Pages: 30
Date: 2011
New Economics Papers: this item is included in nep-agr and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea11:103365

DOI: 10.22004/ag.econ.103365

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