Technical efficiency of Macedonian pig farms

Abstract

The economic transition and market globalization processes have triggered structural changes in the Macedonian agriculture and influence on the efficiency and competitiveness in the pig production sub-sector. This paper aims to identify the level of technical efficiency on pig farms in the Republic of Macedonia. The Data Envelopment Analysis approach is used to measure the efficiency level, taking into consideration the exact quantity of inputs used in the production in relation to a given quantity of output. The data is analysed by making comparative analyses of the managerial behaviour and other non-measurable variables that influence the efficiency. The results determine what managerial activities influence the efficiency. They indicate the type and level of inputs that need to be changed, so that farms could reach the same technical efficiency achieved by the best farmers.