Efficiency in swine production in European countries. Cases of Denmark and Poland

• Juan Cabas-Monje Facultad de Ciencias Empresariales, Departamento de Gestión Empresarial, Grupo de Investigación en Agronegocios, Universidad del Bío-Bío. Región de Ñuble, Chile.
• Luis Améstica-Rivas Facultad de Ciencias Empresariales, Departamento de Gestión Empresarial, Universidad del Bío-Bío. Región de Ñuble, Chile.
• Jonathan Labra-Hernández Facultad de Ciencias Empresariales, Departamento de Gestión Empresarial, Universidad del Bío-Bío. Región de Ñuble, Chile.
• Bouali Guesmi Center for Agro-Food Economics and Development (CREDA-UPC-IRTA). Castelldefels, España.
• José María Gil Center for Agro-Food Economics and Development (CREDA-UPC-IRTA). Castelldefels, España.

DOI: https://doi.org/10.52973/rcfcv-luz311.art4

Keywords: technical efficiency, stochastic frontier, pig production

Abstract

Pork is the second type of meat produced in the world, with Europe being the second most important Region after Asia. Within the European pork meat market, Denmark and Poland are two relevant players with some differences in their production systems (PS). The objective of this research was to study the variables that explain the behavior of pig meat production and the relative technical efficiency of the PS, taking into account the differences in the systems. Stochastic production frontier models of the Translog type were used for samples of swine producers in the period 2010- 2015. The results indicate that the samples of producers from both Countries present high levels of efficiency, with values of 0.899 and 0.859 for Denmark and Poland, respectively. The most important factors that explain pig production are food and capital. In addition, Poland presents significant technological growth in the period without changes in efficiency, while Denmark does not present significant technological progress and a decrease in relative technical efficiency in the period.

References

AIGNER, D. C.; LOVELL, A. K.; SCHMIDT, P. Formulation and estimation of stochastic frontier production function models. J. Econometr. 6(1): 21-37. 1977.

ASMILD, M.; HOUGAARD, J. L.; KRONBORG, D.; KVIST, H. K. Measuring inefficiency via potential improvements. J. Product. Analy.19(1): 59-76. 2003.

BATTES.E, G.E.; COELLI, T.J. Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. J. Product. Analy. 3: 153–169. 1992.

BATTESE, G. E.; COELLI, T. J. A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empiric. Economics. 20: 325–32. 1995.

BOGETOFT, P.; OTTO, L. Stochastic Frontier Analysis SFA. Benchmarking with Dea, Sfa, and R. Springer Science & Business Media. Pp. 197-232. 2010.

BRAVO-URETA, B.; SOLIS, D.; MOREIRA, V.; MARIPANI, J.; ABDOURAHMANE, T.; RIVAS, T. Technical efficiency in farming: a meta-regression analysis. J. Product. Analy. 27: 57–72. 2007.

CALAFAT, C.; MARTÍ, M.; PUERTAS, R. Eficiencia del sector ganadero valenciano: Aproximación no paramétrica. ITEA Inform. Tecn. Econom. Agra.114(1): 61-77. 2018.

CHAITIP, P.; CHAIBOONSRI, C.; INLUANG, F. The Production of Thailand’s Sugarcane: Using Panel Data Envelopment Analysis (Panel DEA) Based Decision on Bootstrapping Method. Procedia Econom. and Finance. 14: 120-127. 2014.

COELLI, T.; HENNINGSEN, A. Frontier: Stochastic Frontier Analysis. R package version 1.1-8. On line: https://bit.ly/3cnP3EC. 2020.

COELLI, T. J.; RAO, D. S. P.; O’DONNELL, C. J.; BATTESE, G. E. Stochastic Frontier Analysis. An introduction to efficiency and productivity analysis. Springer Science & Business Media Inc. Pp. 241-261. 2005.

DANISH AGRICULTURE AND FOOD COUNCIL (DAFC). Fakta Om Erhvervet 2017: Fødevareklyngen Har Kurs Mod Fremtiden (Facts and figures 2017, the food cluster is heading for the future). Copenhague. 40 pp. 2018.

OFICINA ESTADÍSTICA DE LA UNIÓN EUROPEA (EUROSTAT). Agricultural production - livestock and meat - Statistics Explained. 2020. On-line: https://bit.ly/3yYtQuq. 10.11.2020.

FARRELL, MJ. The measurement of productive efficiency. J. Royal Statist. Soc. 120(A): 253-281. 1957.

ORGANIZACIÓN DE LAS NACIONES UNIDAS PARA LA ALIMENTACIÓN Y LA AGRICULTURA (FAO) Y MINISTERIO DE MEDIO AMBIENTE Y ALIMENTACIÓN DE DINAMARCA - ADMINISTRACIÓN DANESA DE VETERINARIA Y ALIMENTACIÓN. Hacer frente al uso de antimicrobianos y la resistencia a los antimicrobianos en la producción porcina: lecciones aprendidas de Dinamarca. Roma. 52 pp. 2019.

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATION (FAO). Food Outlook - Biannual Report on Global Food Markets: June 2020. Food Outlook. 1. 160 pp. 2020.

GARCÍA, E.; SERRANO, C. Competitividad y eficiencia. Estud. Econom. Aplicad. 21(3): 423-450. 2003.

HENNINGSEN, A. Introduction to Econometric Production Analysis with R. Collection of Lecture Notes. 2nd Draft Version. Department of Food and Resource Economics, University of Copenhagen. 370 pp. 2018.

HENNINGSEN, A.; CZEKAJ, T. G.; FORKMAN, B.; LUND, M; NIELSEN, A. S. The relationship between animal welfare and economic performance at farm level: A quantitative study of Danish pig producers. J. Agric. Econom. 69(1): 142-162. 2018.

HOMAN, M. Structural changes in the Polish pig sector. 2018. Embassy of the Kingdom of the Netherlands. On-line: https:// www.agroberichtenbuitenland.nl. 10.01.2021.

JAIME, M.; SALAZAR, C. Participation in Organizations, Technical Efficiency and Territorial Differences: A Study of Small Wheat Farmers in Chile. Chilean J. Agric. Res. 71(1): 104-113. 2011.

KUMBHAKAR, S.; LOVELL, C. The Estimation of Technical Efficiency. Stochastic Frontier Analysis. Cambridge: Cambridge University Press. Pp. 63-130. 2000.

KUMBHAKAR, S.; WANG, H.; HORNCASTLE, A. Estimation of Technical Efficiency in Single Equation Panel Models. A Practitioner’s Guide to Stochastic Frontier Analysis Using Stata. Cambridge: Cambridge University Press. Pp.241-278. 2015.

LABAJOVA, K.; HANSSON, H.; ASMILD, M.; GÖRANSSON, L.; LAGERKVIST, C. J.; NEIL, M. Multidirectional analysis of technical efficiency for pig production systems: The case of Sweden. Livest. Sci. 187: 168-180. 2016.

MEEUSEN, W.; VAN DEN BROECK, J. Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error. Intern. Econom. Rev. 18(2): 435-444. 1977.

MINISTERIO DE AGRICULTURA, PESCA Y ALIMENTACIÓN, GOBIERNO DE ESPAÑA. El sector de la Carne de Cerdo en cifras: Principales Indicadores Económicos. Subdirección General de Producciones Ganaderas y Cinegéticas, Dirección General de Producciones y Mercados Agrarios. 63 pp. 2020.

MROCZEK, R. Red meat sector after accession of Poland to the EU. Econom. Sociol. 2(2): 69-76. 2009.

ORTEGA, L.; WARD, R.; ANDREW, C. Technical Efficiency of the Dual-Purpose Cattle System in Venezuela. J. Agric. Appl. Econom. 39(3):719-733. 2007.

R CORE TEAM. R: A language and environment for statistical computing. R Foundation for Statistical Computing, Vienna, Austria. On Line: https://www.R-project.org/. 2020.

ROGUET, C.; GAIGNÉ, C.; CARIOU, S.; CARLIER, M.; CHATELLIER, V.; CHENUT, R.; DANIEL, K.; PERROT, C. Spécialisation territoriale et concentration des productions animales européennes: état des lieux et facteurs explicatifs. INRA Prod. Anim. 28(1): 5-22. 2015.

TIAN, X.; SUN, F.; ZHOU, Y. Technical efficiency and its determinants in China’s hog production. J. Integrat. Agric. 14(6): 1057-1068. 2015.

UMEH, J. C.; OGBANJE, C.; ADEJO, M. A. Technical efficiency analysis of pig production: A sustainable animal protein augmentation for Nigerians. J. Advanc. Agric. Technol. 2(1): 19-24. 2015.

WAGAN, S.A.; MEMON, Q.U.A.; QIAN, L.; JINGDONG, L. Measuring the efficiency of Pakistani rice production via stochastic frontier and data envelopment analyses. Custos e @gronegócio on line. 15(2): 63-86. 2019.