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Technical Efficiency in the Sheep Dairy Industry: an Application on the Sardinian (Italy) Sector

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  • Furesi, Roberto
  • Madau, Fabio A.
  • Pulina, Pietro

Abstract

Sardinia (Italy) is one of the most important European regions for sheep dairy and sheep milk cheese production. However the Sardinian sheep dairy industry is currently going through a dramatic crisis, and verifying whether it can recover part of its profitability is now a priority. Attention is now focused on estimating whether the sheep dairy firms can improve their productivity by more efficient use of their available technical resources. This paper aims to estimate technical efficiency in the Sardinian sheep dairy industry. A stochastic frontier analysis approach was used on panel data from 36 sheep dairy firms over the period 2004-2009 in order to assess whether there are some margins for technical improvements in productivity, given the existing level of technology. A comparative analysis of private firms and cooperatives was also carried out, in order to establish if there were differences in the technology they used and/or their efficiency in using technical inputs. Our findings suggest that there is technological homogeneity among the firms and between private firms and cooperatives. Technical efficiency is equal to 0.905 and it is significantly different between private firms (0.933) and cooperatives (0.877). Our findings have certain implications for what policies should be implemented in order to improve efficiency in the sector and on the orientation of decision makers strategies.

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  • Furesi, Roberto & Madau, Fabio A. & Pulina, Pietro, 2011. "Technical Efficiency in the Sheep Dairy Industry: an Application on the Sardinian (Italy) Sector," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114348, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114348
    DOI: 10.22004/ag.econ.114348
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    1. Mulugeta Y. Birhanu & Tesfahun Alemayehu & Jasmine E. Bruno & Fasil Getachew Kebede & Emmanuel Babafunso Sonaiya & Ezekiel H. Goromela & Oladeji Bamidele & Tadelle Dessie, 2021. "Technical Efficiency of Traditional Village Chicken Production in Africa: Entry Points for Sustainable Transformation and Improved Livelihood," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    2. Eihab Fathelrahman & Sherin Sherif & Dana L. K. Hoag, 2014. "Small Ruminant Production System Efficiency under Abu-Dhabi, United Arab Emirates Arid Land Conditions," Agriculture, MDPI, vol. 4(4), pages 1-20, December.
    3. Luca Camanzi & Elisabetta Arba & Cosimo Rota & Cesare Zanasi & Giulio Malorgio, 2018. "A structural equation modeling analysis of relational governance and economic performance in agri-food supply chains: evidence from the dairy sheep industry in Sardinia (Italy)," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-21, December.
    4. Brunella Arru & Roberto Furesi & Fabio A. Madau & Pietro Pulina, 2021. "Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    5. Anna Gaviglio & Rosalia Filippini & Fabio Albino Madau & Maria Elena Marescotti & Eugenio Demartini, 2021. "Technical efficiency and productivity of farms: a periurban case study analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-18, December.
    6. Caetano Luiz Beber & Sebastian Lakner & Ioannis Skevas, 2021. "Organizational forms and technical efficiency of the dairy processing industry in Southern Brazil," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-22, December.
    7. Kamau, Philip & Willy, Daniel & Ngare, Lucy, 2020. "Resource Use Efficiency Among Rice Farmers Around Fragile Ecosystems: Evidence From Kilombero Wetland, Tanzania," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 14(3-4), December.
    8. Fabio A. Madau & Brunella Arru & Roberto Furesi & Paola Sau & Pietro Pulina, 2022. "Public perception of ecosystem and social services produced by Sardinia extensive dairy sheep farming systems," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-42, December.

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