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Decomposing Productivity and Efficiency among Western Australian Grain Producers

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  • Tozer, Peter R.
  • Villano, Renato

Abstract

We provide empirical evidence to decompose productivity growth of a group of producers into technical change and efficiency measures at the farm level. Using four years of farm-level data from forty-five grain producers in the low- to medium-rainfall zone of Western Australia, we decompose productivity numbers to analyze total factor productivity. The results show that producers are generally technical, mix, and scale efficient, but the results for input and output mix efficiencies vary. The outcomes for input mix efficiency suggest that producers face some rigidity in their production decisions. In contrast, output mix efficiency suggests that most producers adjust their output mixes to account for different seasonal conditions and enterprise mixes.

Suggested Citation

  • Tozer, Peter R. & Villano, Renato, 2013. "Decomposing Productivity and Efficiency among Western Australian Grain Producers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-15.
    • Handle: RePEc:ags:jlaare:165930
    DOI: 10.22004/ag.econ.165930
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    1. Temoso, Omphile & Villano, Renato & Hadley, David, 2015. "Agricultural productivity, efficiency and growth in a semi-arid country: a case study of Botswana," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(3), pages 1-15, September.
    2. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe, Laure, 2016. "Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," 149th Seminar, October 27-28, 2016, Rennes, France 244793, European Association of Agricultural Economists.
    3. Majiwa, Eucabeth Bosibori Opande & Lee, Boon & Wilson, Clevo, 2015. "Multi-lateral multi-output measurement of productivity: the case of African agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 212769, International Association of Agricultural Economists.
    4. Hu, Yue & Liu, Chang & Peng, Jiangang, 2021. "Financial inclusion and agricultural total factor productivity growth in China," Economic Modelling, Elsevier, vol. 96(C), pages 68-82.
    5. S. C. West & A. W. Mugera & R. S. Kingwell, 2022. "The choice of efficiency benchmarking metric in evaluating firm productivity and viability," Journal of Productivity Analysis, Springer, vol. 57(2), pages 193-211, April.
    6. Viet Nguyen, Thanh & Simioni, Michel & Le Van, Dao, 2019. "Assessment of TFP change at provincial level in Vietnam: New evidence using Färe–Primont productivity index," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 329-345.
    7. Ioanna Reziti & Leonidas Zangelidis, 2019. "Regional Productivity and Efficiency Growth in Greek Agriculture," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 69(4), pages 3-20, October-D.
    8. A. Wondemu Kifle, 2016. "Working Paper 237 - Decomposing Sources of Productivity Change in Small-Scale Farming in Ethiopia," Working Paper Series 2332, African Development Bank.
    9. María Molinos-Senante & Alexandros Maziotis & Ramon Sala-Garrido, 2017. "Assessment of the Total Factor Productivity Change in the English and Welsh Water Industry: a Färe-Primont Productivity Index Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2389-2405, June.
    10. Skevas, Ioannis & Zhu, Xueqin & Shestalova, Victoria & Emvalomatis, Grigorios, 2018. "The Impact of Agri-Environmental Policies and Production Intensification on the Environmental Performance of Dutch Dairy Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(3), September.
    11. Cechura, Lukas & Hockmann, Heinrich & Malý, Michal & Žáková Kroupová, Zdenka, 2015. "Comparison of technology and technical efficiency in cereal production among EU countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(2), pages 27-37.
    12. Cechura, L. & Hockmann, H. & Malý, M. & Žáková Kroupová, Z., 2015. "Comparison of Technology and Technical Efficiency in Cereal Production among EU Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(2), pages 1-11, June.
    13. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe , Laure, 2017. "Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," Working Papers 263010, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

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