Measuring technical efficiency of Greek red suckler cow breed's farms in Central Macedonia region using a data envelopment analysis model

Abstract

This study aims to estimate the technical efficiency (TE) of a randomly selected sample of red Greek suckler cow breed farms in the area of Central Macedonia and identify the most technically efficient characteristics of cow-calf operations. Moreover, this work wants to verify the impact of local and European policies in support of the sector on the estimated efficiency. The research investigates the technical efficiency of 64 suckler cow farms by using the data envelopment analysis (DEA) method. Findings reveal that the most efficient farms were larger, with higher gross revenue, and higher cost of fixed capital than non-efficient farms. In addition, the cost of variable capital, which directly affects profitability, was lower on efficient farms. Efficient farms demonstrate better techno-economic results and managerial practices. This is the first research that studies the red suckler cow breed, based on original data obtained from a direct survey in a field interview.