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Measurement And Explanation Of Technical Efficiency In Missouri Hog Production

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  • Ben-Belhassen, Boubaker
  • Womack, Abner W.

Abstract

The U.S. live hog production has undergone a significant structural change characterized by a trend toward larger operations. Experts argue that there is a cost advantage for larger farms due to industrialization and increased management intensity. One important element in production, mainly for industries with rapid consolidation, is technical efficiency which affects the firm's competitive position directly. This study uses a stochastic production frontier function and farm-level data to measure and explain technical efficiency in Missouri hog production. The study estimates the mean technical efficiency for farms in the sample at about 82 percent, implying that a large proportion of production (18%) is lost due to farm-specific inefficiencies. Further, the results of the technical efficiency model proves the effects of technology and managerial skills on the level of productive efficiency. The study also finds economies of scale in hog production, thus explaining the consolidation in the industry.

Suggested Citation

  • Ben-Belhassen, Boubaker & Womack, Abner W., 2000. "Measurement And Explanation Of Technical Efficiency In Missouri Hog Production," 2000 Annual meeting, July 30-August 2, Tampa, FL 21819, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea00:21819
    DOI: 10.22004/ag.econ.21819
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    References listed on IDEAS

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    2. Mbehoma, Petermus M. & Mutasa, Felician, 2013. "Determinants of Technical Efficiency of Smallholders Dairy Farmers in Njombe District, Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2), July.
    3. Anirban Nandy & Piyush Kumar Singh & Alok Kumar Singh, 2021. "Systematic Review and Meta- regression Analysis of Technical Efficiency of Agricultural Production Systems," Global Business Review, International Management Institute, vol. 22(2), pages 396-421, April.
    4. Aree Cheamuangphan & Aree Wiboonpongse & Yaovarate Chaovanapoonphol & Songsak Sriboonchitta, 2013. "Factors enhancing production efficiency of farmer households who are members of saving groups in Upper Northern Thailand," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(2), pages 71-82, June.
    5. Chanita Panmanee & Aree Cheamuangphan & Kasem Kunasri, 2013. "Value perception and consumption of indigenous vegetables," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(2), pages 101-114, June.

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