Evaluation of technical efficiency of Hungarian and Croatian livestock sectors using DEA on FADN data

Abstract

The different sectors of the livestock industry play an important role in meeting the increasing demand for animal products in both Hungary and Croatia. The general objective of this study was to investigate and compare the efficiency of the livestock sectors in Croatia and Hungary using the Data Envelopment Analysis method. In this paper, the technical efficiency of the dairy, beef, broiler, sheep and goat, and pig sectors from 2014 to 2017 is investigated based on the Farm Accountancy Data Network database. This paper compared farms of different size classes based on the Standard Production Value for more detailed insights. Among the five main livestock sectors, Hungary performs better in terms of farm technical efficiency in the dairy and beef sectors, while Croatia has higher efficiency scores in the sheep sector. The performances in the pig and broiler sectors are almost the same in both countries. Moreover, in the Hungarian poultry, pig, sheep and goat sectors and the Croatian dairy, beef and pig sectors, the technical efficiency of small-sized farms is better than that of medium-sized farms.