The efficiency of the dairy sector in mainland Portugal

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A two-stage Data Envelopment Analysis (DEA) approach is employed to analyze the efficiency of dairy farms in mainland Portugal. The data are a 2010 sample from the European Commission Farm Accountancy Data Network (FADN) of 271 Portuguese mainland dairy farms. In the first stage, a directional input distance function and DEA are used to generate overall inefficiency measures and decompose them for each farm. In the second stage, the inefficiency measures are regressed on environmental and/or organizational factors to explain efficiency differentials. Despite environmental and/or organizational differences, results indicate that most dairy farms in mainland Portugal can reduce costs by improving allocative efficiency and pure technical efficiency.
Original languageEnglish
Title of host publicationAlimentar mentalidade, vencer a crise global - atas do ESADR 2013
EditorsMaria Leonor da Silva Carvalho, Pedro Damião de Sousa Henriques, Vanda Narciso
Place of PublicationÉvora
PublisherUniversidade de Évora
Publication statusPublished - Dec 2013
EventESADR 2013: alimentar mentalidades, vencer a crise global - Universidade de Évora, Évora, Portugal
Duration: 15 May 201319 May 2013


ConferenceESADR 2013


  • Bootstrapping
  • DEA
  • Economic efficiency
  • Input directional distance function
  • Portuguese mainland dairy farms


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