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Heterogeneous Production Efficiency of Specialized Swine Producers

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Author Info

  • Tonsor, Glynn T.
  • Featherstone, Allen M.

Abstract

This research evaluates the efficiency of swine firms differing by specialization type and employed technologies. Measures of technical, allocative, scale, economic, and overall efficiency are separately and jointly estimated for farrow-to-finish, farrow-to-feeder, feeder-to-finish, farrow-to-weanling, weanling-to-feeder, and mixed operations. Findings confirm appreciable differences in efficiency and causes of efficiency. Results suggest that overall efficiency of farrow-to-finish and farrow-to-weanling operations is on average lower than farrow-to-feeder, feeder-to-finish, and weanling-to-feeder operations. In addition, Tobit models examining how demographic factors, farm type, and input expenses influence efficiency indicate additional variation across firm specializations. This information can help aid in making more appropriate decisions such as producers altering their input mixes or researchers evaluating the existence and implications of firm heterogeneity in an industry.

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File URL: http://purl.umn.edu/35379
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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida with number 35379.

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Date of creation: 2006
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Handle: RePEc:ags:saeaso:35379

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Web page: http://www.saea.org/
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Related research

Keywords: efficiency; heteroskedastic Tobit; firm specialization; future anticipation; producer heterogeneity; production technology; returns to scale; swine; Livestock Production/Industries;

References

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  1. Hayri ´┐Żnal & Laurian Unnevehr & Aleksandar Bekric, 2000. "Regional Shifts in Pork Production: Implications for Competition and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 968-978.
  2. McBride, William D. & Key, Nigel D., 2003. "Economic And Structural Relationships In U.S. Hog Production," Agricultural Economics Reports 33971, United States Department of Agriculture, Economic Research Service.
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Cited by:
  1. Key, Nigel D. & McBride, William D. & Mosheim, Roberto, 2006. "Decomposition of Total Factor Productivity Change in the U.S. Hog Industry, 1992-2004," 2006 Annual meeting, July 23-26, Long Beach, CA 21323, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Key, Nigel D. & McBride, William D. & Mosheim, Roberto, 2008. "Decomposition of Total Factor Productivity Change in the U.S. Hog Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.

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