Production environment and managerial techniques in explaining productivity growth in Brazilian beef cattle production

Maristela M. Martins, Humberto F. S. Spolador and Eric Njuki

Agribusiness, 2022, vol. 38, issue 2, 371-385

Abstract: Brazil is a key player in the global beef markets having generated 15% of global production, and approximately 20% of world exports in 2018. Productivity improvements will be indispensable if the Brazilian beef sector wants to maintain its position as a key player in both the domestic and international markets. In light of the aforementioned, this study makes two key contributions to the agricultural productivity literature on Brazil. First, it estimates the production technology used in the Brazilian beef cattle sector using stochastic production frontier methods that account for exogenous factors that impact the production environment. Second, using the estimated coefficients as weights, it decomposes a total factor productivity (TFP) index that tracks various sources of productivity growth including: technical efficiency, technological change, scale efficiency, and environmental efficiency. By utilizing farm‐level data this study generates deeper insights into the dynamics driving beef cattle production at the most disaggregated level. Results indicate that TFP growth averaged 1.73% per annum and was primarily driven by scale efficiency, which increased at 1.39%. Meanwhile, technical efficiency declined at a rate of −0.03% per annum. [EconLit Citations: D24, O13, Q15].

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:38:y:2022:i:2:p:371-385

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