Pig Farms in Macedonia: Assessment of the Technical Efficiency

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.

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 Record created 2017-04-01, last modified 2017-08-28

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