Pig Farms in Macedonia: Assessment of the Technical Efficiency
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The aim of this paper is to analyse the technical efficiency of pig production
farms in the Republic of Macedonia. The Macedonian pig production sub-sector
become increasingly inefficient during the period of economic transition; the country
is net-importer of pig meat from countries that produce at lower production costs.
Farmers are faced with the challenge to increase their efficiency of production thus
to become more competitive; this is affected by the decisions made with regard to
the quantities of utilised inputs and produced outputs. In this study technical
efficiency is explained from output oriented perspective, assessing the possibility of
farmers to increase the efficiency by producing maximum output quantities. The
technical efficiency is estimated by employing the parametric Stochastic Frontier
Analysis. An empirical analysis was carried out on the data collected by
questionnaires in 2010. The results show altered technical efficiency levels in each
decision making unit.