scholarly journals Organizational forms and technical efficiency of the dairy processing industry in Southern Brazil

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Caetano Luiz Beber ◽  
Sebastian Lakner ◽  
Ioannis Skevas

AbstractThe objective of this article is to assess the determinants of the technical efficiency of dairy processing firms in Southern Brazil while accounting for their different organizational forms, namely cooperatives and investor-owned firms. The data from 243 milk processors in southern Brazil, including firm structure, management capacity, and organizational choice of dairies, were analyzed. A production frontier is specified to estimate technical efficiency and identify its potential driving sources. Bayesian techniques are used to estimate the model. An average efficiency of 77% indicates that the actual output is 23% below its potential, which implies that output could, on average, be increased by approximately 31.6%, under ceteris paribus conditions. Economies of scale were also detected. The analysis reveals that the management capacity within companies is the main determinant of efficiency. Idle capacities of processing plants are an important source of inefficiencies and cooperatives are more efficient than investor-owned firms, despite their transaction costs potentially being higher and the five vaguely defined property rights inherent to the traditional cooperatives which they must overcome. Knowledge about the cooperatives’ objectives other than profit maximization would provide a more realistic comparison against investor-owned firms. This study assessed the determinants of the efficiency levels of dairy processing companies in an emerging economy using a unique own dataset with data collected at a plant level. Based on the results, manifold managerial and political implications have been derived that can benefit the dairy industry of developing and emerging economies.

2018 ◽  
Vol 25 (8) ◽  
pp. 3062-3080 ◽  
Author(s):  
Khar Mang Tan ◽  
Fakarudin Kamarudin ◽  
Amin Noordin Bany-Ariffin ◽  
Norhuda Abdul Rahim

Purpose The purpose of this paper is to examine the firm efficiency or technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) in the selected developed and developing Asia-Pacific countries. Design/methodology/approach The sample consists of a sum of 700 firms in selected developed and developing Asia-Pacific countries over the period from 2009 to 2015. The non-parametric data envelopment analysis under the production approach is used to investigate firm efficiency. Findings On average, this paper discovers that the firms in selected Asia-Pacific countries are moderately efficient. Scale inefficiency (SIE) is found to be the dominant source of firms’ technical inefficiency. The analysis of return to scale shows that the large firms tend to operate at decreasing return to scale level, while the small firms tend to operate at increasing return to scale level. Practical implications The findings from this paper provide significant insights to the policy makers and firm managers in promoting the efficient firms of Asia-Pacific countries. Originality/value The present paper conducts a critical analysis on return to scale in the firms sector of Asia-Pacific context, which is ignored by the past studies on firm efficiency since the analysis of return to scale is mostly emphasized on banking sector. The precise nature of SIE is important for a firm to be efficient in achieving the firm’s primary goals of profit maximization and sustaining market competitiveness.


2018 ◽  
Vol 80 (6) ◽  
pp. 123-135
Author(s):  
O.V. Naumenko ◽  
◽  
I.Y. Skripkina ◽  
S.I. Voychuk ◽  
N.A. Korol ◽  
...  

2020 ◽  
Vol 17 (105) ◽  
pp. 63-70
Author(s):  
Arash Ebadi ◽  
Mojtaba Bonyadian ◽  
Mariam Abasvali ◽  
Fahime Torian ◽  
zahra hashemi ◽  
...  

Author(s):  
Tiziana Caliman ◽  
Paolo Nardi

The aim of this work is to introduce a first analysis concerning the relevance that ownership and financial structure, but also market dimension and business portfolios, have on the technical efficiency of Italian water utilities. Even though scholars have provided information on the influence of some dimensional or geographical variables, mono-utility character or ownership on efficiency, no paper, to the best of our knowledge, has ever considered the presence of all these hedonic variables as efficiency shifters or drivers. Antonioli and Filippini (2001) have not included ownership; Benvenuti and Gennari (2008) have included ownership and multi-utility strategy, but excluded the geographical dimension; Fabbri and Fraquelli (2000) have not included geographical location, business strategy or ownership; furthermore, most analyses of the Italian water sector have focused on the ATO level (investments, labour costs) and not on utility performances. We have estimated four heteroskedastic stochastic production frontiers: two different parametric models, where the hedonic dummy mono is either in the model as an additional variable or it is used to parameterize the variance of the inefficiency term; two competitive statistical formulations have also been introduced to specify the inefficiency component distribution, that is, the half normal and the exponential distributions. The most important findings of this paper can be summarized as follows. The labour, capital and other input elasticities are always highly significant, positive and quite stable in all the performed models, as expected for a well-behaved production function. The main results show that the mono-business strategy is not efficient; at the same time, operating water and sewerage together implies higher efficiency than water- only management. Theoretically, the population density can have an ambiguous effect on efficiency: on one hand, it could be more expensive to serve dispersed customers, but, on the other, it could generate congestion problems. It could be argued that the second effect prevails, therefore a higher density is accompanied by a higher inef- ficiency. The analysis points out that the variance of the idiosyncratic term is a function of the size of the firm, which is measured as the number of connected properties; the null hypothesis, that the firms use a constant returns-to-scale technology, has also been rejected. Considering the 1994 reform, it is possible to state that the integration of water and sewerage has substantially been positive; at the same time, the economies of scale and the ambiguity of density justify the division into provincial basins. The role of the private sector in the water industry, in agreement with previous literature, has neither a positive nor a negative impact on efficiency and ownership is simply not influent [obviously the quality of service should be considered, although the same indifference seems to emerge (Dore et al., 2001)]. Southern Italy suffers from a higher degree of inefficiency (also recently confirmed by Svimez, 2009), and this is probably the most important issue that has to be dealt with, because of the risks of drought and watering bans in those Regions during summer.


2019 ◽  
Vol 16 (2) ◽  
pp. 63-73
Author(s):  
Putri Devintha S.B. ◽  
Imam Asngari ◽  
Suhel Suhel

The purpose of this study is to determine technical efficiency, alocative/price efficiency and economies efficiency using production factors, and to know about economies of scale of seasoning and flavoring Industry in Indonesia. The data used in this research were secondary data with five digit ISIC (10772) using panel data and for the analytical techniques used in this study include multiple linear regression analysis as production function with stochastic production frontier approach. The result shows that labor production function has positive but insignificant impact on the production, while capital and material has positive and significant impact on the production. The value of technical efficiency is 0,7796 or 77,96% shows that the used of production factors is inefficient technically, the value of alocative/price efficiency is 1,7703 that is mean inefficient, the value of economies efficiency is 1,3801 7703 means that economies efficiency has not achieved the standard yet, and economies of scale is about 1,0203, means that the economies of scale is always increase or commonly known as incresing return to scale but, the value of economies of scale is equal to one, so that the economies of scale can be known as constant return to scale


2019 ◽  
Vol 47 (3) ◽  
pp. 971-1008 ◽  
Author(s):  
Stefan Hirsch ◽  
Ashok Mishra ◽  
Niklas Möhring ◽  
Robert Finger

Abstract We analyse the flexibility of EU dairy processors to adjust production to fluctuating economic conditions. For a set of 2,186 firms, we derive production flexibility measures representing the effect of output variations on costs. The results reveal that flexibility is highest in Poland and Italy and lowest in Spain. Several firm-specific factors, such as size and age of the firm, are found to affect firm flexibility. Moreover, we detect a tradeoff between flexibility and technical efficiency for large firms indicating that a sole focus on firm efficiency can be insufficient. Finally, the results show that during economic crisis flexibility can help to sustain profitability.


1991 ◽  
Vol 54 (8) ◽  
pp. 607-611 ◽  
Author(s):  
RONA B. KLAUSNER ◽  
CATHERINE W. DONNELLY

This survey was conducted to identify specific environmental sources of Listeria and Yersinia in Vermont dairy plants, and to further determine whether the type of plant and specific conditions existing within plants influenced the incidence of positive microbiological results. A total of 361 environmental samples, focusing on floors and other nonproduct contact surfaces, was taken from all of Vermont's 34 dairy processing plants. The incidence of Listeria monocytogenes (1.4%) was low compared to the incidence of Listeria innocua (16.1%). While only 2.5% yielded other Yersinia species, 10.5 % of the sites were positive for Yersinia enterocolitica. Sites positive for either Listeria or Yersinia were statistically more likely to produce a positive result for both (P<.05). Fluid plants had the highest incidence of both Listeria and Yersinia when compared to cheese plants or other types of dairy manufacturing plants. Areas associated with case washers in fluid plants had the highest incidence of microbial contamination. An additional area of concern for all types of plants was sanitizing floor mats and foot baths from which positive microbiological results were obtained. Contamination in wet areas was significantly greater than in dry areas of the plants (P<.05). Identification of the sources and conditions associated with these problematic bacterial pathogens is an important step in learning to control their incidence in dairy processing environments.


2013 ◽  
Vol 59 (No. 6) ◽  
pp. 271-280 ◽  
Author(s):  
J.A. Onumah ◽  
E.E. Onumah ◽  
R.M. Al-Hassan ◽  
B. Brümmer

This study considers the meta-frontier technique to compare the efficiency level of organic and conventional cocoa production systems in Ghana using a cross sectional data of 390 farms. The results reveal that the organic systems exhibit an increasing return to scale whilst, the conventional system exhibit decreasing returns to scale. All the inputs variables positively influence the production except the age of trees. The combined effects of operational and farm specific factors are identified to influence the technical efficiency although the individual effects of some variables are not significant. The mean technical efficiency relative to the meta-frontier is estimated to be 0.59 for the organic and 0.71 for the conventional farms. The study concludes that the conventional system of cocoa production is more technically efficient than the organic system. However, the increase in the scale of production in the organic system to take advantage of the economies of scale may enhance the efficiency of production.  


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