IDEAS home Printed from
   My bibliography  Save this article

Measuring Productive Efficiency in Multiple Product Agribusiness Firms: A Dual Approach


  • Jay T. Akridge


Measuring retail fertilizer plant efficiency is difficult, given the range of outputs produced by these multiple product firms. A frontier multiproduct cost function was employed to measure productive efficiency. Results suggest the average plant could lower variable costs by 10% through more effective operations. Allocative inefficiency was minimal, indicating management should focus on improving technical efficiency. The limitations of employing a single-product model in a multiproduct situation are demonstrated.

Suggested Citation

  • Jay T. Akridge, 1989. "Measuring Productive Efficiency in Multiple Product Agribusiness Firms: A Dual Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 116-125.
  • Handle: RePEc:oup:ajagec:v:71:y:1989:i:1:p:116-125.

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Dhehibi, Boubaker, 2010. "Productive Efficiency in Water Usage: An Analysis of Differences among Citrus Producing Farms Sizes in Tunisia," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 97328, African Association of Agricultural Economists (AAAE).
    2. G. Karagiannis & V. Tzouvelekas & A. Xepapadeas, 2003. "Measuring Irrigation Water Efficiency with a Stochastic Production Frontier," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 57-72, September.
    3. Paul V. Preckel & Jay T. Akridge & Michael A. Boland, 1997. "Efficiency measures for retail fertilizer dealers," Agribusiness, John Wiley & Sons, Ltd., vol. 13(5), pages 497-509.
    4. David G. Barton & Ted C. Schroeder & Allen M. Featherstone, 1993. "Evaluating the feasibility of local cooperative consolidations: A case study," Agribusiness, John Wiley & Sons, Ltd., vol. 9(3), pages 281-294.
    5. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2008. "Measuring Irrigation Water Efficiency with a Stochastic Production Frontier: An Application for Citrus Producing Farms in Tunisia," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52166, African Association of Agricultural Economists (AAAE).
    6. Liu, Jing & Bailey, DeeVon, 2013. "Examining Economies of Scale for Farmer Cooperatives in China’s Shanxi Province," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 0(Number 2), pages 1-30.
    7. Caputo, Michael R. & Lynch, Lori, 1993. "A Nonparametric Efficiency Analysis Of California Cotton Ginning Cooperatives," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-15, December.
    8. Chebil, Ali & Frija, Iheb & Bahri, Walid, 2014. "Irrigation water efficiency in wheat production in Chbika (Tunisia):Parametric versus Nonparametric Comparisons," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 1), pages 1-14.
    9. Frija, Aymen & Chebil, Ali & Abdelkafi, Belhassen, 2012. "Irrigation water use efficiency in collective irrigated schemes of Tunisia: determinants and potential irrigation cost reduction," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 1), pages 1-10.
    10. Bravo-Ureta, Boris E. & Jara-Rojas, Roberto & Lachaud, Michee A. & Moreira L., Victor H. & Scheierling, Susanne M., 2015. "Water and Farm Efficiency: Insights from the Frontier Literature," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206076, Agricultural and Applied Economics Association.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:71:y:1989:i:1:p:116-125.. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.