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Sardinia (Italy) is one of the most important European regions for sheep dairy and sheep milkcheese production. However the Sardinian sheep dairy industry is currently going through adramatic crisis, and verifying whether it can recover part of its profitability is now a priority.Attention is now focused on estimating whether the sheep dairy firms can improve theirproductivity by more efficient use of their available technical resources. This paper aims toestimate technical efficiency in the Sardinian sheep dairy industry. A stochastic frontier analysisapproach was used on panel data from 36 sheep dairy firms over the period 2004-2009 in orderto assess whether there are some margins for technical improvements in productivity, given theexisting level of technology. A comparative analysis of private firms and cooperatives was alsocarried out, in order to establish if there were differences in the technology they used and/ortheir efficiency in using technical inputs. Our findings suggest that there is technologicalhomogeneity among the firms and between private firms and cooperatives. Technical efficiencyis equal to 0.905 and it is significantly different between private firms (0.933) and cooperatives(0.877). Our findings have certain implications for what policies should be implemented inorder to improve efficiency in the sector and on the orientation of decision makers strategies.

Keywords: Sheep dairy industry ; technical efficiency ; stochastic frontier analysis(SFA) ; private firms and cooperatives ; Sardinia

Subject(s): Livestock Production/Industries

Issue Date: 2011

Publication Type: Conference Paper/ Presentation

PURL Identifier:

Total Pages: 12

Record appears in: European Association of Agricultural Economists (EAAE) > 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland

Autor: Furesi, Roberto ; Madau, Fabio A. ; Pulina, Pietro


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