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Assessing the Technical and Allocative Efficiency of Marketing Decisions by U.S. Organic Producers

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  • Lohr, Luanne
  • Park, Timothy A.

Abstract

We develop measures of technical and allocative efficiency of producers in marketing certified organic products. A stochastic output distance frontier and the associated revenue share equations are estimated using comprehensive U.S. data on certified organic producers. Farm-level measures of technical efficiency are calculated and factors which enhance performance are identified. Factors that systematically influence allocative efficiency are assessed. The revenue mix of organic producers is systematically inefficient as both male and female producers rely too heavily on revenue from organic markets relative to conventional outlets.

Suggested Citation

  • Lohr, Luanne & Park, Timothy A., 2011. "Assessing the Technical and Allocative Efficiency of Marketing Decisions by U.S. Organic Producers," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103365, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103365
    DOI: 10.22004/ag.econ.103365
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    References listed on IDEAS

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    Farm Management; Marketing;

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