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Abstract
Rangeland cattle production is the largest agricultural sector of Uruguay. It has shown a slow improvement in productivity over the last three decades. Ranches produce up to three products (beef, sheep-meat, and wool) usually combined into an equivalent meat index. A comparison between stochastic production frontier (SPF) and multi-output stochastic ray frontier (SRF) to estimate technical efficiency measures of ranches is used. The database comprises 70 ranches over a maximum of 3 years, totalizing 201 individual observations. We find that the average level of technical efficiency is 0.769 for SPF and 0.779 for SRF, which suggests that ranches can expand cattle production using the current level of inputs and production technology available. Moreover, technical efficiency is decreasing among the considered period.
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