Technical and economic efficiency of fattening cows in New Valley Governorate

Document Type : Original Article

Authors

1 Department of Economic Studies, Desert Research Center

2 Department of Agricultural Economics, Faculty of Agriculture, Benha University

3 Faculty of Agriculture - Benha University.

4 Economic Studies Department, Socioeconomic Studies Division, Desert Research Center

Abstract

The research problem is the weak contribution of the New Valley Governorate to livestock production in Egypt. Therefore, the research aimed to estimate the technical and economic efficiency of a simple random sample of 390 cow fattening farms in the New Valley Governorate in 2022/2023 using Data Envelopment Analysis (DEA). The results are:
1- Efficiency indicators: The average technical efficiency coefficient (TECRS) are 0.794, 0.996, and 0.886 for the first, second, and third categories, respectively. This indicates the possibility of saving about 20.6%, 0.4%, and 11.4% of resources without a decline in the level of production for the three categories, respectively. The average economic efficiency factor (EE) are 0.772, 0.992, and 0.80 for the aforementioned categories, respectively. This indicates the possibility of achieving the same level of production at a cost lower than the actual cost by 22.8%, 0.8%, and 20%, respectively.
2- The success of the farm groups in achieving efficiency at the sample level: 50% of the farms achieved technical efficiency in case of variance return to scale (TE VRS), while only 28.7% of the farms achieved economic efficiency.
3- The optimal quantities of outputs and the most important inputs at the sample level: the target weight of cow to market is 390 kg, and that there is a deficit in the actual weight representing 14.47% of the target. There is a deficit in the average number of veterinary service hours, representing 35.70% of the actual number, in addition to a deficit in the volume of human work

Keywords

Benha Journal of Humanities Sciences
Volume 3, Issue 1
January and February 2024
Pages 288-313

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