Assessing technical efficiency in traditional olive grove systems: A directional metadistance function approach

Authors

  • Mercedes Beltrán-Esteve Universitat de València

DOI:

https://doi.org/10.7201/earn.2013.02.03

Keywords:

Data Envelopment Analysis, Directional distance functions, Metafrontier, Olive farming, Technical efficiency

Abstract

Olive growing is the main agricultural activity in Andalusia, although the systems used are far from homogenous. Indeed, technological and natural characteristics have led to the implementation of several growing systems. Our goal is to analyze the efficiency of the two most important systems in Andalusia: traditional rain-fed mountain and plain olive groves. In this paper we not only assess the efficiency of olive farms but also assess the efficiency of farming systems. Additionally, this analysis takes into account the traditional radial input orientation and also the input-specific efficiency. The results highlight the advantages of the plain olive grove system in front of the mountain olive grove system.

Downloads

Download data is not yet available.

Author Biography

Mercedes Beltrán-Esteve, Universitat de València

Departamento de Economía Aplicada II. Universidad de Valencia

References

Amores, A.F. and Contreras, I. (2009). “New approach for the assignment of new European agricultural subsidies using scores from data envelopment analysis: Application to olive-growing farms in Andalusia (Spain)”. European Journal of Operational Research, 193(3): 718-729. http://doi.org/fjtdwt.

Arriaza, M., Gómez-Limón, J.A., Kallas, Z. and Nekhay, O. (2008). “Demand for non-commodity outputs from mountain olive groves”. Agricultural Economics Review, 9(1): 5-23.

Barreiro-Hurlé, J., Martínez-Paz, J.M. and Espinosa-Goded, M. (2009). “Conservación y eficiencia productiva: impacto de los programas agro-ambientales en la eficiencia de las explotaciones cerealistas de secano”. Información Técnica Económica Agraria, 105(3): 184-201.

Beaufoy, G. and Pienkowski, M. (2000). The environmental impact of olive oil production in the European Union: practical options for improving the environmental impact. European Commission, Brussels.

Beltrán-Esteve, M., Gómez-Limón, J.A., Picazo-Tadeo, A.J. and Reig-Martínez, E. (2013). “A metafrontier directional distance function approach to assessing eco-efficiency”. Journal of Productivity Analysis, Forthcoming. http://doi.org/pz4.

CAP. (2002). El olivar andaluz. Consejería de Agricultura y Pesca, Junta de Andalucía, Sevilla.

CAP. (2008). El sector del aceite de oliva y la aceituna de mesa en Andalucía. Consejería de Agricultura y Pesca, Junta de Andalucía, Sevilla.

Calatrava, J., Franco, J.A. and González M.C. (2007). “Analysis of the adoption of soil conservation practices in olive groves: The case of mountainous areas in southern Spain”. Spanish Journal of Agricultural Research, 5(3): 249-258. https://doi.org/10.5424/sjar/2007053-246

Chambers, R., Chung, Y. and Färe, R. (1998). “Profit, directional distance functions and Nerlovian efficiency”. Journal of Optimization Theory and Applications, 98(2): 351-364. http://doi.org/dxdp6n.

Charnes, A., Cooper, W.W. and Rhodes, E. (1978). “Measuring the efficiency of decision making units”. European Journal of Operational Research, 2(6): 429-444. http://doi.org/bmrrj9.

Cooper, W.W., Seiford, L.M. and Tone, K. (2007). Data Envelopment Analysis. A comprehensive text with models, applications, references and DEA-Solver software. Springer, New York.

Dios-Palomares, R. and Martínez-Paz, J.M. (2011). “Technical, quality and environmental efficiency of the olive oil industry”. Food Policy, 36(4): 526-534. http://doi.org/dsr9br.

Duarte, F., Jones, N. and Fleskens, L. (2008). “Traditional olive orchards on sloping land: Sustainability or abandonment?” Journal of Environmental Management, 89(2): 86-98. http://doi.org/bkcrxb.

Elfkih, S., Guidara, I. and Mtimet, N. (2012). “Are Tunisian organic olive growing farms sustainable? An Adapted IDEA approach analysis”. Spanish Journal of Agricultural Research, 10(4): 877-889. http://doi.org/pz7.

Färe, R. and Grosskopf, S. (2000). “Theory and application of directional distance functions”. Journal of Productivity Analysis 13(2): 93-103. http://doi.org/bjvnkc.

Franco, J.A. and Calatrava, J. (2010). “Adopción y difusión de práctica de no laboreo en el olivar de la provincia de Granada”. Economía Agraria y Recursos Naturales, 10(1): 135-154. https://doi.org/10.7201/earn.2010.01.08

Franco, J.A. and Calatrava, J. (2012). “The diffusion process of no-tillage with herbicides application in Southern Spain’s olive groves”. Journal of Environmental Planning and Management, 55(8): 979-1003. http://doi.org/pz8.

Fleskens, L. and Graaff, J. de (2010). “Conserving natural resources in olive orchards on sloping land: Alternative goal programming approaches towards effective design of cross-compliance and agri-environmental measures”. Agricultural Systems, 103(8): 521-534. http://doi.org/crfcx3.

Gallardo, R., Ramos, F. and Ramos, E. (2002). “Perturbaciones provocadas por la nueva PAC en las decisiones de ajuste estratégico en sistemas agrarios andaluces”. Economía Agraria y Recursos Naturales, 2(1): 131-152. https://doi.org/10.7201/earn.2002.01.07

Gómez-Limón, J.A. and Arriaza, M. (2011). Evaluación de la sostenibilidad de las explotaciones de olivar en Andalucía. Analistas Económicos de Andalucía, Málaga.

Gómez-Limón, J.A., Picazo-Tadeo, A.J. and Reig-Martínez, E. (2012). “Eco-efficiency assessment of olive farms in Andalusia”. Land Use Policy, 29(2): 395-406. http://doi.org/bskgxs.

González, E. and Álvarez, A. (2001). “From efficiency measurement to efficiency improvement: The choice of a relevant benchmark”. European Journal of Operational Research, 133(3): 512-520. http://doi.org/fnt2q3.

González, E. and Cárcaba, A. (2004). “Efficiency improvement through learning”. International Journal of Technology Management, 27(6/7): 628-638. https://doi.org/10.1504/IJTM.2004.004906

Graaf, J. de, Duarte, F., Fleskens, L. and Figueiredo, T. de (2010). “The future of olive groves on sloping land and ex-ante assessment of cross compliance for erosion control”. Land Use Policy, 27(1): 33-41. http://doi.org/csb5vb.

Graaff, J. de and Eppink, L.A.A.J. (1999). “Olive oil production and soil conservation in southern Spain, in relation to EU subsidy policies”. Land Use Policy, 16(4): 259-267. http://doi.org/cs594b.

Graaff, J. de, Kessler, A. and Duarte, F. (2011). “Financial consequences of cross-compliance and flat-rate-per-ha subsidies: The case of olive farmers on sloping land”. Land Use Policy, 28(2): 388-394. http://doi.org/cn4jb3.

Guzmán, G.I. and Alonso, A.M. (2008). “A comparison of energy use in conventional and organic olive oil production in Spain”. Agricultural Systems, 98(3): 167-176. http://doi.org/dc649w.

Kallas, Z., Gómez-Limón, J.A., Arriaza, M. and Nekhay, O. (2006). “Análisis de la demanda de bienes y servicios no comerciales procedentes de la actividad agraria: el caso del olivar de montaña andaluz”. Economía Agraria y Recursos Naturales, 6(11): 49-79. https://doi.org/10.7201/earn.2006.11.03

Karagiannis, G. and Tzouvelekas, V. (2009a). “Measuring technical efficiency in the stochastic varying coefficient frontier model”. Agricultural Economics, 40(4): 389-396. http://doi.org/cnbvn7.

Karagiannis, G. and Tzouvelekas, V. (2009b). “Parametric measurement of Time-Varying technical inefficiency: Results from competing models”. Agricultural Economics Reviews, 10(1): 50-79.

Krivonozhko, V., Førsund, F., Rozhnov, A. and Lychev, A. (2012). “Measurement of returns to scale using a non-radial DEA model”. Doklady Mathematics, 85: 144-148. (Published in Russian in Doklady Akademii Nauk, 442: 605-609). https://doi.org/10.1134/S1064562412010322

Lambarraa, F., Serra, T. and Gil, J.M. (2007). “Technical efficiency analysis and decomposition of productivity growth of Spanish olive farms”. Spanish Journal of Agricultural Research, 5(3): 259-270. https://doi.org/10.5424/sjar/2007053-247

Larsén, K. (2010). “Effects of machinery-sharing arrangements on farm efficiency: evidence from Sweden”. Agricultural Economics, 41(5): 497-506. http://doi.org/b6vxmp.

Latruffe, L., Balcombe, K., Davidova, S. and Zawalinska, K. (2005). “Technical and scale efficiency of crop and livestock farms in Poland: does specialization matter?” Agricultural Economics, 32(3): 281-296. http://doi.org/ffqkbn.

Latruffe, L., Fogarasi, J. and Desjeux, Y. (2012). “Efficiency, productivity and technology comparison for farms in Central and Western Europe: The case of field crop and dairy farming in Hungary and France”. Economic Systems, 36(2): 264-278. http://doi.org/fzks43.

Li, Q. (1996). “Nonparametric testing of closeness between two unknown distribution functions”. Econometric Reviews, 15(3): 261-274. http://doi.org/dbk38f.

Loumou, A. and Giourga, C. (2003). “Olive groves: The life and identity of the Mediterranean”. Agriculture and Human Values, 20(1): 87-95. https://doi.org/10.1023/A:1022444005336

O’Donnell, C., Rao, D. and Battese, G. (2008). “Metafrontier frameworks for the study of firm-level efficiencies and technology ratios”. Empirical Economics, 34(2): 231-255. http://doi.org/drrs56.

Parra, C., Calatrava, J. and Haro, T. (2005). “Evaluación comparativa multifuncional de sistemas agrarios mediante AHP: aplicación al olivar ecológico, integrado y convencional de Andalucía”. Economía Agraria y Recursos Naturales, 5(9): 27-55. https://doi.org/10.7201/earn.2005.09.02

Parra-López, C., Calatrava-Requena, J. and Haro-Giménez, T. (2008). “A systemic comparative assessment of the multifunctional performance of olive systems in Spain within an AHP-extended framework”. Ecological Economics, 64(4): 820-834. http://doi.org/b2rgx3.

Picazo-Tadeo, A.J. and Reig-Martínez, E. (2006). “Outsourcing and efficiency: the case of Spanish citrus farming”. Agricultural Economics, 35(2): 213-222. http://doi.org/b9xmjk.

Picazo-Tadeo, A.J., Beltrán-Esteve, M. and Gómez-Limón, J.A. (2012). “Assessing eco-efficiency with directional distance functions”. European Journal of Operational Research, 220(3): 798-809. http://doi.org/pz5.

Reig-Martínez, E. and Picazo-Tadeo, A.J. (2004). “Analysing farming systems with Data Envelopment Analysis: citrus farming in Spain”. Agricultural Systems, 82(1): 17-30. http://doi.org/c74kfw.

Sáez-Fernández, F., Picazo-Tadeo, A.J. and Llorca-Rodríguez, C. (2012). “Do labour societies perform differently to cooperatives? Evidence from the Spanish building industry”. Annals of Public and Cooperative Economics, 83(1): 61-81. http://doi.org/pz6.

Scheidel, A. and Krausmann, F. (2011). “Diet, trade and land use: a socio-ecological analysis of the transformation of the olive oil system”. Land Use Policy, 28(1): 47-56. http://doi.org/c9c345.

Simar, L. and Zelenyuk, V. (2006). “On testing equality of distributions of technical efficiency scores”. Econometric Reviews, 25(4): 497-522. http://doi.org/df9vmw.

Torgersen, A., Førsund, F. and Kittelsen, S. (1996). “Slack-adjusted efficiency measures and ranking of efficient units”. Journal of Productivity Analysis, 7(4): 379-398. http://doi.org/fhnx76.

Tzouvelekas, V., Pantzios, J. and Fotopoulos, C. (2001). “Technical efficiency of alternative farming systems: The case of Greek organic and conventional olive-growing farms”. Food Policy, 26(6): 549-569. http://doi.org/cdswkt.

Xiloyannis, C., Martínez, A., Kosmas, C. and Favia, M. (2008). “Semi-intensive olive orchards on sloping land: Requiring good land husbandry for future development”. Journal of Environmental Management, 89(2): 110-119. http://doi.org/ccqjb8.

Zhu, X., Karagiannis, G. and Oude Lansink, A. (2011). “The impact of direct income transfers of CAP on Greek olive farms’ performance: Using a non-monotonic inefficiency effects model”. Journal of Agricultural Economics, 62(83): 630-638. http://doi.org/fctwdv.

Downloads

Published

2014-01-02

Issue

Section

Article