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Technical, quality and environmental efficiency of the olive oil industry

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  • Dios-Palomares, Rafaela
  • Martínez-Paz, José M.

Abstract

This paper studies the level of technical efficiency in the olive oil industry from a multi-output perspective, and examines olive oil production in quantitative and qualitative terms. The study also covers the environmental impact of the production process. These are key issues due to the current environmental, organoleptic and food traceability requirements of the EU Common Agricultural Policy (CAP). Furthermore, product differentiation is sought after in today's ever more demanding markets. The production of olive oil in Andalusia (Spain) is the most important agricultural food industry in the whole region and it represents 30% of world olive oil production. Three data sources have been used: a comprehensive survey to a sample of olive oil producers, their financial reports, and the opinion of a group of experts in olive oil production techniques interviewed by means of the Delphi survey. With this data and after the construction of indicators, a production frontier is elaborated by applying an extension of the Data Envelopment Analysis (DEA) technique. This will allow for the measuring of the relative technical efficiency indices and set specific efficiency indices for both the quality of the oil produced and the environmental impact of the production process. Those factors impacting on efficiency are determined by a truncated regression model with bootstrap. The results show a medium-high level of relative technical efficiency and highlight the importance of efficiency factors involving production and marketing associations.

Suggested Citation

  • Dios-Palomares, Rafaela & Martínez-Paz, José M., 2011. "Technical, quality and environmental efficiency of the olive oil industry," Food Policy, Elsevier, vol. 36(4), pages 526-534, August.
  • Handle: RePEc:eee:jfpoli:v:36:y:2011:i:4:p:526-534
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:12:p:2241-:d:121575 is not listed on IDEAS
    2. Mercedes Beltrán-Esteve & José Gómez-Limón & Andrés Picazo-Tadeo & Ernest Reig-Martínez, 2014. "A metafrontier directional distance function approach to assessing eco-efficiency," Journal of Productivity Analysis, Springer, vol. 41(1), pages 69-83, February.
    3. repec:wly:agribz:v:33:y:2017:i:4:p:505-521 is not listed on IDEAS
    4. Amarender Reddy, A. & Bantilan, Ma Cynthia S., 2012. "Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India," Food Policy, Elsevier, vol. 37(3), pages 255-263.
    5. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    6. Dios-Palomares, Rafaela & José-Diz, David Alcaide & Jurado, Manuel & Guijarro, Angel Prieto & Martinez-Paz, J. M. & Zúniga-González, Carlos Alberto, 2015. "Aspectos medioambientales en los análisis de eficiencia," Revista Iberoamericana de Bieoconomía y Cambio Climático, National Autonomous University of Nicaragua, León (Unan-León), Researching Center for Agrarian Sciences and Applied Economics (CICAEA), vol. 1(1).
    7. Alcaide-López-de-Pablo, David & Dios-Palomares, Rafaela & Prieto, Ángel M., 2014. "A new multicriteria approach for the analysis of efficiency in the Spanish olive oil sector by modelling decision maker preferences," European Journal of Operational Research, Elsevier, vol. 234(1), pages 241-252.
    8. Hosseinzadeh-Bandbafha, Homa & Safarzadeh, Dariush & Ahmadi, Ebrahim & Nabavi-Pelesaraei, Ashkan & Hosseinzadeh-Bandbafha, Ehssan, 2017. "Applying data envelopment analysis to evaluation of energy efficiency and decreasing of greenhouse gas emissions of fattening farms," Energy, Elsevier, vol. 120(C), pages 652-662.
    9. Magdalena Kapelko, 2017. "Dynamic versus static inefficiency assessment of the Polish meat‐processing industry in the aftermath of the European Union integration and financial crisis," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 505-521, September.

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