Technical Efficiency of Milk Processing

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00027251%3A_____%2F20%3AN0000023" target="_blank" >RIV/00027251:_____/20:N0000023 - isvavai.cz</a>

Result on the web

<a href="https://ap.pef.czu.cz/en/r-12193-conference-proceedings" target="_blank" >https://ap.pef.czu.cz/en/r-12193-conference-proceedings</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Technical Efficiency of Milk Processing

Original language description

The aim of this paper is to evaluate the technical efficiency of Czech milk processing companies that can be affected by sector changes. During last ten years there are large fluctuations in profits due to increase of costs and decrease of revenues. A parametric method Stochastic Frontier Analysis was used to calculate the technical efficiency by True Fixed-effects model with half normal distribution of technical inefficiency term. There were 613 observations per 53 milk processing firms for years 2004 to 2017. Results showed that technical efficiency of sample of milk processing companies is on 65.7% level. Median was higher, half of the firms were more or less efficient than 71.5%. There was none firm that would be 100% efficient in all years. The most efficient firm had average efficiency 93.82%. On the other hand, minimum was only 19.49% that points out on the firm that produces too small output with too many resources. In comparison to other studies it is very low efficiency. One of the reasons can be the situation in this sector and price fluctuations. The sample consist mainly of small and medium enterprises for which it is harder adapt to sectoral changes and price fluctuations can affect their economic situation. Therefore, the data must be subjected to further analysis to find the part of milk processors with such lower efficiency.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

40500 - Other agricultural sciences

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Agrarian Perspectives XXIX. Trends and Challenges of Agrarian Sector

ISBN

978-80-213-3041-2

ISSN

2464-4781

e-ISSN

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Number of pages

8

Pages from-to

376-383

Publisher name

Česká zemědělská univerzita Praha

Place of publication

Praha

Event location

Praha

Event date

Sep 16, 2020

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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