Multidimensional performance assessment of a sample of beef cattle ranches in the Pantanal from a data envelopment analysis perspective

Abstract

Beef cattle ranching is the main economic activity in the Brazilian Pantanal, undertaken in an extensive manner, mostly in natural environments and dynamic in space and time. The ongoing monitoring, assessment, and performance improvement are key aspects of the search for sustainable use of natural resources in beef cattle ranches, as these ranches are the management units in the Pantanal. In this paper we proposed a data envelopment analysis (DEA) approach to assess the performance of fourteen beef cattle ranches in the Pantanal wetland as a case study, considering financial, productive, and environmental sustainability dimensions. We modeled each dimension separately and calculated an overall performance score. We also fit fractional regression models to study the influence of potential covariates on the performance scores. The methodological approach proposed here proved to be adequate for the case study, as the results are in line with the expectations of decision-makers regarding the performance of the ranches. The overall performance analysis was influenced by the proportion of higher quality native forage resources, which depends on the dynamics and on the spatial-temporal variation of the landscapes. Therefore, overall performance requires adaptive management of ranches based on diversity conservation, which benefits the multifunctionality of products and services.