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Assessment of Technical and Eco-Efficiency of Dairy Farms in the Republic of Serbia: Towards the Implementation of a Circular Economy

Author

Listed:
  • Tihomir Novaković

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Dragana Novaković

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Dragan Milić

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Mirela Tomaš Simin

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Maja Radišić

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Mladen Radišić

    (Faculty of Technical Sciences, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Srboljub Nikolić

    (Military Academy, University of Defence, 11000 Belgrade, Serbia)

  • Milan Mihajlović

    (Military Academy, University of Defence, 11000 Belgrade, Serbia)

Abstract

Efforts to improve agricultural sustainability have increasingly focused on enhancing productivity while minimizing environmental impact. In the Republic of Serbia, dairy farming remains a critical sector due to its dual role in food production and environmental pressure. This study aims to evaluate the technical and eco-efficiency of dairy farms in the Republic of Serbia using FADN data and the Stochastic Frontier Analysis (SFA) method. Specifically, the SFA methodology was applied, which enables a separate assessment of time-invariant and time-variant efficiency, with the aim of clearly identifying the factors that shape milk production in the Republic of Serbia. It was found that the technical efficiency for the 2015–2023 period was at a level of 58.7%, while the eco-efficiency was estimated to be 13.1%. Observing the relationship between the estimated technical and eco-efficiency, it can be concluded that they share similar mechanisms for improvement. In both cases, time-invariant inefficiency dominated, indicating that factors under the control of farms, such as the characteristics of agricultural producers and farms, play a key role in shaping production efficiency. In this context, adopting circular economy principles, such as nutrient recycling, the use of renewable energy, and optimized input utilization, offers an additional opportunity to enhance both economic and environmental performance.

Suggested Citation

  • Tihomir Novaković & Dragana Novaković & Dragan Milić & Mirela Tomaš Simin & Maja Radišić & Mladen Radišić & Srboljub Nikolić & Milan Mihajlović, 2025. "Assessment of Technical and Eco-Efficiency of Dairy Farms in the Republic of Serbia: Towards the Implementation of a Circular Economy," Agriculture, MDPI, vol. 15(8), pages 1-23, April.
    • Handle: RePEc:gam:jagris:v:15:y:2025:i:8:p:899-:d:1638957
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    References listed on IDEAS

    as
    1. Steliana Rodino & Ruxandra Pop & Cristina Sterie & Andreea Giuca & Eduard Dumitru, 2023. "Developing an Evaluation Framework for Circular Agriculture: A Pathway to Sustainable Farming," Agriculture, MDPI, vol. 13(11), pages 1-24, October.
    2. Eko Ruddy Cahyadi & Nurul Hidayati & Nisa Zahra & Chusnul Arif, 2024. "Integrating Circular Economy Principles into Agri-Food Supply Chain Management: A Systematic Literature Review," Sustainability, MDPI, vol. 16(16), pages 1-17, August.
    3. Agnieszka Klimkowicz-Pawlas & Bożena Smreczak & Barbara Maliszewska-Kordybach, 2023. "Integrated Ecological Risk Assessment of the Agricultural Area under a High Anthropopressure Based on Chemical, Ecotoxicological and Ecological Indicators," Agriculture, MDPI, vol. 13(7), pages 1-17, July.
    4. Mirela Tomaš Simin & Dragan Milić & Dragana Novaković & Vladislav Zekić & Tihomir Novaković, 2024. "Organic Agriculture in Focus: Exploring Serbian Producers’ Views on the Common Agricultural Policy and the National Agrarian Policy," Sustainability, MDPI, vol. 16(11), pages 1-18, May.
    5. Xiuju Feng & Yunchen Zheng & Woraphon Yamaka & Jianxu Liu, 2024. "How Does Agricultural Green Transformation Improve Residents’ Health? Empirical Evidence from China," Agriculture, MDPI, vol. 14(7), pages 1-15, July.
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