Technical Efficiency Measurement in Broiler Chicken Production System: A Case Study in Epirus, Greece

L. Hatzizisis, V. Dotas, K. Zagorakis, D. Gourdouvelis and D. Dotas

Agricultural Economics Review, 2019, vol. Volume 20, issue Issue 01

Abstract: The aim of this study was to determine the Technical Efficiency (TE) and Scale Efficiency (SE) of broiler farms (DMUs) in Epirus Region of Greece, calculating the margin at which the farms may increase the output based on certain quantities of inputs. The data were gathered by questionnaires and face to face interviews. A representative sample of 110 broiler farms from Arta, Ioannina and Preveza Regional Units randomly selected by using the Neyman’s allocation method of stratified sampling. TE and SE of DMUs were determined using an output-oriented Data Envelopment Analysis (DEA) approach. Results showed that the applied broiler meat productive system of Epirus is intensive, large scale and characterized by high capital investment, high quantities of used feeds and high rate of efficiency. Output is significantly affected by the quantity of used feeds and the average working capital. TE under Constant Return Scale (CRS) and Variable Return Scale (VRS) models runs up to 0.79 and 0.85, respectively and SE score rises up to 0.94 meaning that the inefficiency is only 6%. Feeding Cost (FC) and Feed Conversion Ratio (FCR) are highlighted as strongly (p≤0.01) related variables with the TE and SE. Further increase of TE must be focused on the improvement of FCR and on better utilization of infrastructure and equipment in general.

Keywords: Production Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aergaa:330638

DOI: 10.22004/ag.econ.330638

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