This paper aimed to evaluate the technical efficiency of milk producers in the Projeto de Assentamento (PA) Feliz União, municipality of Lagoa Grande, MG. To this collected data to some of the milk production of 23 settlers in 2007 and later was used as analytical tools used Data Envelopment Analysis (DEA) to assess the technical efficiency of producers. The results show that the majority of producers (84%) are technically inefficient. Of inefficient farmers, 87% are operating under increasing returns to scale and 13% operating under diminishing returns to scale. Analyzing it is efficient and inefficient producers are mainly realizes that efficient producers are more intensive factor in the labor force and have herd dairy specialist for the activity. Technical assistance was not an important factor that explains the efficiency and inefficiency of producers.


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