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Technical Efficiency Assessment of Intensive and Traditional Olive Farms in Southern Italy

Author

Listed:
  • Stillitano, T.
  • Falcone, G.
  • Nicolò, B. F.
  • Di Girolamo, C.
  • Gulisano, G.
  • De Luca A. I.

Abstract

Olive-growing plays an important role in Southern Italy’s agricultural sector. However, the profitability of many olive growing farms depends, still today, on public subsidies. The current changes in the European Common Agricultural Policy (CAP) 2014-2020, oriented towards the direct payments decreasing, will inevitably have important effects on farmer incomes. This is why the olive farms will have to increase their level of direct profi tability to ensure their resilience on the market. Therefore, the measurement of technical effi ciency plays a crucial role in identifying more efficient management practices, and for this aim, Data Envelopment Analysis (DEA) represents the most widely used technique in productivity analysis. In this paper, constant returns to scale and variable returns to scale input-oriented models were used to investigate the technical and scale efficiency of intensive and traditional olive farms in Southern Italy, in order to highlight the performance of each farm. Results showed technical inefficiencies in both olive systems and, suggesting that improvements in the input allocation among all farms are needed. Findings could be useful to suggest the adoption of management strategies to optimize the use of inputs, aiming to achieve suitable levels of productive performance.

Suggested Citation

  • Stillitano, T. & Falcone, G. & Nicolò, B. F. & Di Girolamo, C. & Gulisano, G. & De Luca A. I., 2019. "Technical Efficiency Assessment of Intensive and Traditional Olive Farms in Southern Italy," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 11(2), June.
    • Handle: RePEc:ags:aolpei:294157
    DOI: 10.22004/ag.econ.294157
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    Cited by:

    1. Maria Raimondo & Francesco Caracciolo & Concetta Nazzaro & Giuseppe Marotta, 2021. "Organic Farming Increases the Technical Efficiency of Olive Farms in Italy," Agriculture, MDPI, vol. 11(3), pages 1-15, March.
    2. Kenichi Kashiwagi & Hajime Kamiyama, 2023. "Effect of adoption of organic farming on technical efficiency of olive-growing farms: empirical evidence from West Bank of Palestine," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-28, December.
    3. Andrzej Hornowski & Andrzej Parzonko & Pavel Kotyza & Tomasz Kondraszuk & Piotr Bórawski & Luboš Smutka, 2020. "Factors Determining the Development of Small Farms in Central and Eastern Poland," Sustainability, MDPI, vol. 12(12), pages 1-21, June.

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