Economic and environmental benefits of improving production efficiency in eco-feed plants: A case study from Japan

Junji Tsuru, Daigo Ushijima, Tomoaki Nakaishi and Shigemi Kagawa

Socio-Economic Planning Sciences, 2025, vol. 101, issue C

Abstract: This study analyzed the production efficiency of 45 eco-feed plants in Japan—28 using the dry method, 11 with the liquid method, and six using the fermentation method—through data envelopment analysis (DEA). Inputs included annual food waste and maintenance costs, while the output was annual eco-feed production. The results revealed average production efficiency scores of 0.436 (dry), 0.491 (liquid), and 0.469 (fermentation). Improving efficiency could significantly boost eco-feed production. The primary source of inefficiency was identified as pure technical efficiency (PTE), which highlighted disparities in production technologies among plants. By improving inefficiencies, the sales increase potential (SIP), which refers to the potential annual economic savings were estimated to be 4 billion JPY, while greenhouse gas emissions could be reduced by approximately 35,000 t-CO2. Scaling up production was recommended for plants with scale inefficiencies (SE)—particularly those under increasing returns to scale (IRS). Policy measures, including linking food-related industries to eco-feed plants, were proposed to facilitate this. Additionally, identifying reference plants for inefficient facilities was emphasized to enhance PTE. To support this, the government should enable plant managers to visit reference plants and improve waste management systems—particularly for the dry method—by requiring food companies to better sort waste. These measures aim to improve both economic and environmental outcomes.

Keywords: Eco-feed; Food waste; Data envelopment analysis; Production efficiency; Reference plants (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceps:v:101:y:2025:i:c:s0038012125001405

DOI: 10.1016/j.seps.2025.102291

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