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An application of Data Envelopment Analysis (DEA) to Evaluate Economic Efficiency of Poultry Farms in Bangladesh

Author

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  • Begum, Ismat Ara
  • Buysse, Jeroen
  • Alam, Mohammad Jahangir
  • Van Huylenbroeck, Guido

Abstract

This study estimates the technical, allocative and economic efficiency obtained from the Data Envelopment Analysis (DEA) approach using farm level survey data to a sample of 100 poultry farmers in Bangladesh for the year 2007. The results from the DEA approach show that there is substantial technical, allocative and economic inefficiency in poultry production in Bangladesh. The results of the study reveal that under constant return to scale (CRS) and variable returns to scale (VRS) specification, on average, the farms technical, allocative and economic efficiencies were 88%, 70%, 62% and 89%, 73%, 66% respectively. Thus the results indicate that efficiency scores vary substantially across the sampled farms. To explain some of these variations, the efficiency scores were regressed on the farm’s human capital variables such as farmer’s age, education, main occupation, family members, experience, training received, total farm size and poultry farm size, using a Tobit analysis. The results from the both CRS & VRS approaches indicate that efficiency is significantly influenced by some of the farm’s socio-economic factors. This research finding is valuable for policy makers since it may help to guide policies towards increased efficiency.

Suggested Citation

  • Begum, Ismat Ara & Buysse, Jeroen & Alam, Mohammad Jahangir & Van Huylenbroeck, Guido, 2009. "An application of Data Envelopment Analysis (DEA) to Evaluate Economic Efficiency of Poultry Farms in Bangladesh," 2009 Conference, August 16-22, 2009, Beijing, China 50900, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:50900
    DOI: 10.22004/ag.econ.50900
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    Cited by:

    1. Krisztián, Kovács & Ratnesh, Pandey, 2017. "Hungarian Dairy And Beef Production Sector Technical Efficiency Comparsion Using Dea," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 11(3-4), December.
    2. Taraka, Kallika & Latif, Ismail Abd. & Shamsudin, Mad Nasir & Sidique, Shaufique bin Ahmad, 2012. "Estimation of Technical Efficiency for Rice Farms in Central Thailand Using Stochastic Frontier Approach," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 9(2), pages 1-11, December.
    3. Dong, Zefeng & Guan, Zhengfei & Grogan, Kelly A. & Skevas, Theodoros, 2015. "Energy and Environmental Efficiency of Greenhouse Growers in Michigan," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196840, Southern Agricultural Economics Association.
    4. KOVÁCS Krisztián & SZÜCS István, 2020. "Technical, Cost And Allocative Efficiency In The Hungarian Dairy Farms," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 293-303, December.
    5. DZIWORNU, Raymond K. & SARPONG, Daniel B., 2014. "Application Of The Stochastic Profit Frontier Model To Estimate Economic Efficiency In Small-Scale Broiler Production In The Greater Accra Region Of Ghana," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-7, September.
    6. Szőllősi, László & Szűcs, István, 2014. "An Economic Approach To Broiler Production. A Case Study From Hungary," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2014(3).

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