Data Envelopment Analysis (Dea) Approach for Assessing Technical, Economic and Scale Efficiency of Broiler Farms

Hassan, Fardos A.M.

doi:10.36103/ijas.v52i2.1290

Cited by 7 publications

(5 citation statements)

References 39 publications

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“…The findings reveal that approximately 88% of farmers have an inefficiency score below 32%, indicating that most farms operate near their cost-efficiency frontier. This aligns with the findings of previous studies (Etuah et al, 2020;Hassan, 2021). The overall inefficiency scores range from 0.056 to over 0.605, with a mean inefficiency score of 0.242.…”

Section: Discussionsupporting

confidence: 90%

Determinants of Cost Inefficiency and Farmer Performance in Broiler Contract Farming

Aji,

Rondhi,

Suwandari

et al. 2023

Trop. Anim. Sci. J.

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The broiler industry plays an important role in meeting the growing demand for animal protein.Ensuring favorable farming conditions are needed to maintain the meat supply, and theoretically, this can be improved through the implementation of Contract Farming (CF). CF grants farmers the privilege to predict quantities, prices, and reduce production risks. However, one of the key challenges in establishing CF is the cost efficiency and performance of farmers. This study aims to develop a cost function for farmers, identify factors contributing to inefficiency, and evaluate farmer performance. The purposive sampling method is employed to select broiler farmers participating in contract farming as the sample for this study. Primary data were collected through surveys. Stochastic frontier cost analysis is utilized to derive a broiler cost function while examining the causes of farm inefficiency and their relationship with farmers' performance variables. The results indicate that the broiler cost function is significantly influenced by labor costs, the price of day-old chickens, feed expenses, and harvest tonnage. Meanwhile, the inefficiency effect is substantially influenced by farmer age, education, household size, experience, and mortality ratio (MR). Reducing the MR can increase broiler yield, directly improving cost efficiency and, thus farmers' income. Nonetheless, a comprehensive approach that includes training, monitoring, feedback, and incentivization is needed to enhance farmer performance in broiler contract farming.

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Section: Discussionsupporting

confidence: 90%

Determinants of Cost Inefficiency and Farmer Performance in Broiler Contract Farming

Aji,

Rondhi,

Suwandari

et al. 2023

Trop. Anim. Sci. J.

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“…Farrell (1957) gave a definition of the technical efficiency of a firm as the ability to obtain maximum output from a set of inputs in a framework of an output-oriented model. DEA has three concepts of efficiency: technical efficiency, allocative efficiency, and economic efficiency (Hassan, 2021). According to Hassan, 2021, technical efficiency is defined as the maximum feasible output from a specified set of inputs (output-oriented DEA) or minimum feasible input for a specified set of output (input-oriented DEA).…”

Section: Data and Research Methodologymentioning

confidence: 99%

“…Source: own computations If we compute the scale efficiency (SE) as the ratio CRS/VRS in an input-oriented DEA, we obtain Table 3 and Figure 3. The scale efficiency means the point at which a DMU reaches an optimal scale to maximize its productivity (Hassan, 2021). TECRS is technical efficiency at constant returns to scale; TEVRS is technical efficiency at variable returns to scale; SE is scale efficiency; SV is standard deviation; and CV is coefficient of variation.…”

Section: Figure 2 Top Vrs Efficienciesmentioning

confidence: 99%

Managing Entrepreneurial Conditions to Support Early-Stage Entrepreneurial Activity: A Data Envelopment Analysis

Georgescu¹,

Androniceanu²,

Kinnunen³

2023

Proceedings of the International Management Conference

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In this paper, we apply Data Envelopment Analysis with constant and variable returns to scale to study the technical efficiency of 42 countries for 2019 starting from 12 inputs and 3 outputs. The inputs represent the features of entrepreneurial framework conditions, which can be managed by governments to enhance or hinder new business creation, i.e., the outputs of total entrepreneurial activity (TEA) and the ratio of male-female TEA together with (iii) entrepreneurial intentions. The two models show that for the VRS approach, the number of efficient entities is larger than in the case of the CRS approach. The results show that the mean values of the CRS and VRS models reveal that the countries have entrepreneurial activities on the efficient frontier if the use of the input may be reduced by 7.73%, and by 3.17% under CRS and VRS models, respectively, without any decrease in the outputs.

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“…This study relied on the VRS assumption to estimate the technical efficiency of shallot producers, which was widely used in previous studies. (Le et al, 2019;Hassan, 2021). The DEA model that measures technical efficiency is based on the following specifications:…”

Section: Study Areamentioning

confidence: 99%

Data envelopment analysis on efficiency of shallot production in Tra Vinh, Vietnam

Truc Linh,

Thanh Tung,

Thi Thuy Hai

2024

Scientific Horizons

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Shallot is a perennial crop that is grown as an annual to harvest bulb seeds and produced widely in Vietnam. This is an easy-to-grow crop, suitable for land conditions in the local area and brings high economic efficiency. Although shallot is a relatively new crop to the farmers in Tra Vinh province, it is considered one of the key crops in the agricultural development strategy of the province. This study was conducted to assess the efficiency of shallot farming in Tra Vinh province using data envelopment analysis (DEA) approach. The findings revealed that the average cost efficiency was 0.770 and only five farms (2.5%) were fully cost-efficient. The score for average allocative efficiency was slightly superior to that for technical efficiency (0.917 and 0.838); thus, inefficient shallot farms could reach higher cost efficiency by increasing technical efficiency. Accordingly, factors influencing technical and cost efficiency in shallot production were determined in this study. Household size and cultivation experience of the farmers demonstrated negative effects on the levels of technical and cost efficiency. The analysis further revealed that those shallot farmers who had larger shallot farm sizes and those who had better access to technical training tended to be more technical and cost-efficient. Consequently, this study suggests that research to improve shallot-farming techniques should be prioritised support and the quality of technical training programmes for local farmers needs to be raised to increase the technical and cost efficiency in shallot production

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Data Envelopment Analysis (Dea) Approach for Assessing Technical, Economic and Scale Efficiency of Broiler Farms

Cited by 7 publications

References 39 publications

Determinants of Cost Inefficiency and Farmer Performance in Broiler Contract Farming

Determinants of Cost Inefficiency and Farmer Performance in Broiler Contract Farming

Managing Entrepreneurial Conditions to Support Early-Stage Entrepreneurial Activity: A Data Envelopment Analysis

Data envelopment analysis on efficiency of shallot production in Tra Vinh, Vietnam

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