Advanced Search
MyIDEAS: Login

Identifying efficiency trends for Queensland broad-acre beef enterprises

Contents:

Author Info

  • Gregg, Daniel
  • Rolfe, John
Registered author(s):

    Abstract

    Productivity and efficiency improvements in agriculture have recently been targeted as Federal Government priorities in Australia. This research examined a dataset of 116 broad-acre beef enterprises from Queensland who participated in a program, Profit Probe, developed to improve management and profitability of enterprises. The aim of this research was to identify the sources, if any, of productivity growth for this sample of enterprises. Two potential sources of productivity growth were identified: 1. Technological progress involving a contraction (expansion) of the cost (output) frontier, and; 2. Efficiency improvements involving a convergence of the average production function toward the frontier. Given these two potential sources of productivity growth, the Stochastic Frontier Analysis approach was ideally suited to discern and measure technological change and efficiency change. Changes over time were observable due to the unbalanced panel nature of the data with 116 enterprises observed over a range of years from 1999 to 2008. A Cobb-Douglas functional form for the cost function was estimated following testing of the Translog form which showed higher order terms were not significant. An input oriented minimum cost frontier was chosen over the output oriented production frontier approach due to the consideration that output decisions were largely exogenous whilst input decisions were endogenous. Deterministic predictors of inefficiency were included using the panel inefficiency effects frontier of Battese and Coelli. There was no evidence of technological progress in the ten years from 1999 to 2008 for this sample of enterprises. There was however evidence of efficiency improvements despite preexisting high efficiency levels. In particular there was evidence that the Profit Probe program significantly contributed to efficiency improvements for participating firms with improvements continuing with repeated participation in the program. Additionally cost efficiency was shown to be an important component of profit maximisation but most likely was not a sufficient condition with output prices, as a quality and market indicator, being highly significantly related to profit levels.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/59083
    Download Restriction: no

    Bibliographic Info

    Paper provided by Australian Agricultural and Resource Economics Society in its series 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia with number 59083.

    as in new window
    Length:
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:ags:aare10:59083

    Contact details of provider:
    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
    Phone: 0409 032 338
    Email:
    Web page: http://www4.agr.gc.ca
    More information through EDIRC

    Related research

    Keywords: Farm Management;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Asafu-Adjaye, J. & Mahadevan, R., 2003. "How cost efficient are Australia's mining industries?," Energy Economics, Elsevier, vol. 25(4), pages 315-329, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:aare10:59083. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.