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Efficiency in the Valencian pig and poultry sector: a non‑parametric approximation

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Authors: C. Calafat‑Marzal, M.L. Martí‑Selva y R. Puertas‑Medina
Issue: 114-1 (61-77)
Topic: Agricultural Economics
Keywords: Livestock farming, Data Envelopment Analysis, farm management, intensive livestock sectors

The aim of this study is to analyse the efficiency of livestock farms in the Valencian community, particularly for pig and poultry, which currently are the main contributors to the agricultural GDP of the Community. By creating a production function representative of the existing allocations on farm and using Data Envelopment Analysis, the farms that reach an optimal level of production in the absence of inefficiencies will be identified. The results obtained in this study confirm that the pig and poultry sectors of the Valencian Community have significant potential for improvement. The number of farms situated at the threshold of efficiency is low for both species, especially pigs, where only 5.11% of the analysed farms are completely efficient. A comparison of the poultry and pig sectors reveals that the environmental problems surrounding the pig industry could also be one of the causes of deficient economic management.

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