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Measurement of technical efficiency of wine grape producers in Mendoza Argentina

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  • Riera, S.

Abstract

Water is a key resource to agriculture in Mendoza but there are increasing concerns regarding the viability of current practices and availability. Some farms fall short of their production potential, which questions the economic viability of some vineyards, and might trigger structural change and lead to additional pressure on water use. Improvements in irrigation efficiency could help mitigate this problem. Farmers pay for the resource management but do not have to consider the opportunity cost of the resource itself. This paper estimates the technical efficiency (TE) of grapevine production controling for the use of water. The preliminary results point out average efficiency scores of 0.78, where relatively efficient farmers lack proper management practices on water resources. Further estimation of the intrinsic value of irrigation water will provide an additional tool to design specific policies for the sector.

Suggested Citation

  • Riera, S., 2018. "Measurement of technical efficiency of wine grape producers in Mendoza Argentina," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275995, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:275995
    DOI: 10.22004/ag.econ.275995
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    References listed on IDEAS

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    1. Susanne Scheierling & David O. Treguer & James F. Booker, 2016. "Water Productivity in Agriculture: Looking for Water in the Agricultural Productivity and Efficiency Literature," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 1-33, September.
    2. R.F. Townsend & J. Kirsten & N. Vink, 1998. "Farm size, productivity and returns to scale in agriculture revisited: a case study of wine producers in South Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 175-180, September.
    3. Scheierling, Susanne M. & Treguer, David O. & Booker, James F., 2015. "Water Productivity in Agriculture: Looking for Water in the Agricultural Productivity and Efficiency Literature," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205677, Agricultural and Applied Economics Association.
    4. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, December.
    5. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
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    Keywords

    Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; International Development;
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