TECHNICAL EFFICIENCY OF SERBIAN DAIRY PROCESSING INDUSTRY

  • Rade Popović, PhD University of Novi Sad, Faculty of Economics in Subotica, Subotica http://orcid.org/0000-0002-0879-1340
  • Dalibor Panić, MsC, PhD student University of Novi Sad, Faculty of Economics in Subotica, Subotica

Abstract

Serbian dairy processing sector is passing through signifcant structural changes in last couple decades. Concentration, vertical coordination and integration become a main characteristics. The main goal of the paper is to explore technical effciency of 91 Serbian dairy processors in sample by non-parametric method Data envelopment analysis. Data were collected from financial reports of dairy companies in 2015. All dairy companies were divided in 4 groups: micro, small, middle and big. The empirical results indicate that 16.5% of companies were technically effcient. This study shows that efficient companies exist across all size groups, and while small companies suffer from input ineffciency and insufficient size of business, the bigger companies are over invested.

Downloads

Download data is not yet available.

References

1. Aldeseit, B. (2013). Measurement of Scale Effciency in Dairy Farms: Data Envelopment Analysis (DEA) Approach. Journal of Agricultural Science; 5 (9), 37-43. DOI: 10.5539/jas.v5n9p37
2. Barać, Ž., Muminović, S. (2013). The impact of capital investments on dairy processing industry features: evidence from Slovenia, Croatia and Serbia. Mljekarstvo 63 (3), 140-149. URI https://hrcak.srce.hr/106564
3. Al-Sharafat, A. (2013). Technical Effciency of Dairy Farms: A Stochastic Frontier Applicationon Dairy Farms in Jordan.Journal of Agricultural Science5 (3), 45-53. DOI: 105539/jas.v5n3p45
4. Banker, R., Charnes, A., Cooper, W. (1984). Some models for estimating technical and scale ineffciencies in data envelopment analysis. Management science, 30(9), 1078-1092. DOI: 10.1287/mnsc.30.9.1078
5. Baran, J. (2013). Effciency of the production scale of polish dairy companies based on data envelopment analysis. Oeconomia 12 (2), 5–13. ISSN 1644- 0757
6. Barnes, A. P. (2006). Does multi-functionality affect technical effciency? A non-parametric analysis of the Scottish dairy industry. Journal of Environmental Management, 80, 287-294. DOI: 10.1016/j.jenvman.2005.09.020
7. Ben-Belhasenn, B. (2000). Measurement and Explanation of Technical Effciency in Missouri Hog Production. American Agricultural Economics Association (AAEA), Annual Meeting, Tampa, Florida, July 30-Avgust 2. http://ageconsearch.umn.edu/record/21819
8. Business register agency, (2017). Yearly fnancial reports, Available at: http://pretraga2.apr.gov.rs/pretragaObveznikaFI/
9. Candemir, M., Koyubenbe, N. (2013). Effciency Analysis of Dairy Farms in the Province of Izmir (Turkey): Data Envelopment Analysis (DEA), Journal of Applied Animal Research, 29 (1), 61-64. DOI: 10.1080/09712119.2006.9706572
10. Charnes, R., Cooper, W., Rhodes, E. (1978). Measuring the effciency of decision making units. European Journal of Operational Research 2, 429-444. DOI: 10.1016/0377-2217(78)90138-8
11. Coelli, T. (1996). A guide to DEAP Version 2.1. A Data Envelopment Analysis Computer Program, Centre for Effciency and Productivity Analysis, Department of Econometrics, University of New England, Armidale, Australia. ISSN 1327-435X
12. Coelli, T., J., Rao, P., D., S., O’Donnell, C., J., Battese, G., E. (2005). An introduction to effciency and productivity analysis, Springer, USA. ISBN-10: 0-387-24265-1
13. Cooper, W.W., Li S., Seiford, L.M., Tone, K., Thrall, R.M., Zhu, J. (2001). Sensitivity and stability analysis in DEA: some recent developments, Journal of productivity analysis, 15 (3), 217-246.
14. Cooper, W.W., Seiford, L.M. and Zhu, J. (2004). Handbook on Data Envelopment Analysis. Springer, Kluwer Academic Publishers, Boston.
15. D’Haese, M., Speelman, S., Alary, V., Tillard, E., & D’Haese, L. (2009). Effciency in milk production on Reunion Island: Dealing with land scarcity. Journal of Dairy Science, 92, 3676-3683. DOI: 10.3168/jds.2008-1874
16. Farrell, M. J. (1957). The Measurement of Productive Effciency. Journal of the Royal Statistical Society, 120, 253–281. DOI: 10.2307/2343100
17. Fraser, I., Cordina, D. (1999). An application of data envelopment analysis to irrigated dairy farms in Northern Victoria. Agricultural Systems 59, 267-282. DOI: 10.1016/S0308- 521X(99)00009-8
18. Hambrusch, J., Kirner, l., Ortner, K.M. (2006). Technical and scale efficiency in Austrian dairy farming. Economic Science for Rural Development (10), 42- 49. ISSN : 1691-3078
19. Hemme, T. (2016). IFCN Dairy Report 2016. International farm comparison network, IFCN Dairy research center, Kiel, Germany.
20. Kelly, E., Shalloo, L., Geary, U., Kinsella, A., Wallace, M. (2012). Application of data envelopment analysis to measure technical effciency on a sample of Irish dairy farms. Irish Journal of Agricultural and Food Research 51 (1), 63–77. DOI: 10.2307/41756846
21. Kumar, S., Gulati, R. (2008). An Examination of Technical, Pure Technical, and Scale Effciencies in Indian Public Sector Banks using Data Envelopment Analysis, Eurasian Journal of Business and Economics, 1 (2), 33-69.
22. Law on accounting of the Republic of Serbia („Offcial gazette RS”, no. 62/2013), 23. Minh, N. K., & Long, G. T. (2009). Effciency Estimates for Agricultural Production in Vietnam: A Comparison of Parametric and Non parametric Approaches. Agricultural Economics Review, 10, 62-78.
24. Ouattara, W. (2012). Economic Effciency Analysis in Côte d’Ivoire, American Journal of Economics, 2 (1), 37-46.
25. Popovic, R. (2006). An Economic Effciency In Vojvodina Dairy Production. Economics of Agriculture, Belgrade, 53(3), 869-877.
26. Popovic, R. (2013). Economic effciency of dairy farms with intensive and grazing production systems. Book of proceedings the Seminar: Agriculture and rural development - challenges of transition and integration processes, Belgrade 26-28.9.2013. pp. 205-213.
27. Popovic, R. (2014). Structure of farms with livestock enterprises and its importance for agricultural policy. Book of proceedings the Conference: Utilization of the Census of Agriculture 2012 data in analyzing status of agriculture and agricultural policy making in the Republic of Serbia, Subotica
28-30 May 2014, page 325-339 ISBN-978-8686-6161-115-5 Available at: http://popispoljoprivrede.stat.rs/?page_id=5173
28. Popovic, R., Panic D. (2015). Innovative strategies of SMEs food industry in Serbia. Proceedings of the workshop at AgriMBA network Congress „Smart Agribusiness for Society of Tomorrow“, Porec, Croatia, 17 and 18 June 2015, FAO. Available at: http://www.fao.org/fleadmin/user_upload/Europe/documents/Publications/AFC_EECA_en.pdf
29. Popovic, R., Radovanov, B. (2010). Price transmission in Serbian dairy chain. Economics of agriculture, 57 (4), 543-554. ISSN 0352-3462
30. Sarkis, J. (2007). Preparing your data for DEA. Modelling data irregularities and structural complexities in Data envelopment analysis. Springer, New York, USA.
31. Silva, E., Arzubi, A., Berbel, J. (2004). An Application of Data Envelopment Analysis (DEA) in Azores Dairy Farms, New Medit 3, 39-43. DOI: 10.1007/978- 94-007-5739-4-5
32. Soboh, R., Lansink, A., Dijk, G. (2014). Effciency of European dairy processing frms. Wageningen Journal of live sciences, 70-71, 53-59.
33. Špička, J. (2015). The Effciency Improvement of Central European Corporate Milk Processors in 2008 – 2013, Agris on-line Papers in Economics and Informatics 8 (4), 175-188.
34. Vlontzos, G., Theodoridis, A. (2013). Effciency and Productivity Change in the Greek Dairy Industry, Agricultural Economics Review 14 (2), 14-28. ISSN: 1109-2580
Published
2018-06-27
How to Cite
POPOVIĆ, Rade; PANIĆ, Dalibor. TECHNICAL EFFICIENCY OF SERBIAN DAIRY PROCESSING INDUSTRY. Economics of Agriculture, [S.l.], v. 65, n. 2, p. 569-581, june 2018. ISSN 2334-8453. Available at: <http://ea.bg.ac.rs/index.php/EA/article/view/480>. Date accessed: 16 july 2018. doi: https://doi.org/10.5937/ekoPolj1802569P.
Section
Original scientific papers