Belén Iráizoz

Assessing the technical efficiency of horticultural production in Navarra, Spain

Abstract The objective of this paper is to estimate technical efficiency in the horticultural production sector in Navarra (Spain). Tomato and asparagus production are analysed separately. Both a non-parametric and a parametric approach to a frontier production function are used and the differences in the results are discussed. In a second stage we examine the degree to which the calculated efficiency correlates with a set of explanatory variables representing different features of farms such as size, factorial returns and economic performance. The results indicated that both tomato and asparagus production are relatively inefficient, with potential in both cases for reducing input or increasing output. These results hold regardless of whether the frontier was parametric or non-parametric. The estimated measures of technical efficiency were positively related with the partial productivity indices and negatively related with the cultivation costs per hectare. No conclusive results were obtained for the relation between size and efficiency.

The Spanish beef sector in the 1990s: impact of the BSE crisis on efficiency and profitability

The beef sector has undergone a series of changes as a result of successive food scares and agricultural policy reforms. The purpose of the paper is to analyse technical efficiency and profitability in Spanish livestock enterprises during the 1990s, focusing on the possible impact of the BSE crisis and the 1992 CAP reform on each of these variables. The main findings reveal the existence of technical inefficiency during the sample period. Some factors have a positive impact, others a negative impact, on efficiency. As far as the effects of CAP reform and the BSE crisis are concerned, the results show the ineffectiveness of agricultural policy regulation to promote efficiency in the sector and the improvement in the efficiency as a consequence of the BSE crisis. The profitability analysis reveals the importance of direct subsidies, however. In their absence, a large percentage of holdings is unable to remunerate either own or rented factors. Analysis shows, therefore, that there are two counteracting effects from subsidies. On the one hand, they form a major part of the resources of livestock farmers, allowing them to meet input costs and preventing land abandonment. On the other hand, they have a significant negative impact on the level of technical efficiency estimated.

Spatial disparities in the European agriculture: a regional analysis

This article examines the territorial imbalances in European agriculture during the period 1980 to 2001, by means of the information provided by various methodological instruments which allow us to overcome the drawbacks of conventional convergence analysis. The results obtained reveal that the regional distribution of productivity in the agricultural sector is characterized by the presence of positive spatial dependence. This fact implies that the European regions in close spatial proximity register similar levels of the variable under study, which highlights the relevance of geographical location in this context. The empirical evidence presented also shows that regional disparities have remained almost constant during the time interval considered. However, the increase in density around the European average explains the observed reduction in the degree of bipolarization, while intra-distribution mobility is relatively limited. Finally, the analysis carried out allows us to assess the role of variables such as country of origin, investment per worker in the agricultural sector, regional per capita income or the size of the agrifood industry, in explaining the dynamics of the distribution under analysis.

Agricultural productivity in the European regions: Trends and explanatory factors

This paper examines the spatial distribution of agricultural productivity in the European regions for the period 1990–2000, using a twofold descriptive and explanatory approach that allows us to overcome some of the drawbacks of conventional convergence analysis. The spatial distribution of agricultural productivity is summarized in a regional typology that enables us to evaluate the distribution of agricultural productivity and trends across European regions. The various inequality indices and estimated density functions reveal a decrease in regional agricultural productivity disparities, and intra-distribution mobility appears to be relatively limited during the study period. Additionally, the results obtained from the regression analysis are in line with those obtained at the national level. Finally, our non-parametric approach permits us to assess the role of variables such as economic development, agricultural structure and productive specialization in the dynamics of the distribution under analysis.

Total Factor Productivity, Efficiency, and Technological Change in the European Regions: A Nonparametric Approach

This paper examines the global trend of total factor productivity, efficiency, and technological change in the European Union regions over the period 1986–2004, using the Malmquist index computed by data envelopment analysis. The results reveal the important role played by technical efficiency in explaining total factor productivity growth in the European Union. For this reason, in a second stage, we investigate existing regional disparities in efficiency levels across the European regions, using a nonparametric methodology that allows us to study the dynamics of the entire cross-sectional distribution. Estimates show the presence of a process of convergence in efficiency levels over the sample period, despite a relatively low degree of intradistribution mobility. In order to complete these results, factors such as the geographical location of the various regions, country-specific characteristics, or the sectoral composition of economic activity were examined for their role in explaining the observed disparities.

Uneven responses to climate and market influencing the geography of high-quality wine production in Europe

Analysis of the adaptive capacity and vulnerability of production systems faced with increasing risk from sources including climate change and fluctuating market forces is essential for the development of practical strategies to sustain product viability. In the wine production industry, market and climate risk factors are closely related. Climate influences both yields and quality and thereby prices and revenue, while market pressures force farmers to maintain levels of quality wine production in order to meet increasing consumer demand. This paper analyses wine production at regional European level by explaining technical efficiency in a multiple exposure context and exploring climate–efficiency and climate–performance relationships. The methodology includes estimation of a multi-output frontier production function and an inefficiency effects model. The results reveal significant effects of climate variables, most notably temperature, both on output and efficiency, as well as regional differences in adaptive capacity. The use of larger quantities of intermediate inputs has contributed to reducing the vulnerability of the northern regions to climate change, while labour and capital-intensive technologies have been used to adapt to market changes. The potential to improve economic performance by increasing technical efficiency is considerable, particularly in the southern regions, where the existing level is lower.

Performance Evaluation in the UEFA Champions League

This article aims to evaluate the sports performance of teams that have participated in the Union of European Football Associations (UEFA) Champions League (UCL) during the last 10 seasons (2004-2005 to 2013-2014). Technical efficiency is estimated using well-known data envelopment analysis (DEA) approaches and a bootstrapped DEA model. To solve the problem of measuring sporting results as output in knockout competitions, we propose the use of the coefficients applied by the UEFA from UCL revenue distribution. The results obtained show first that there is a high level of inefficiency in UCL over the period studied: Only 10% of the teams seem to be efficient. Also, the teams have many problems in maintaining their efficiency during the seasons. Second, the champion is always efficient. Third, we identify two sources of inefficiency: waste of sports resources and the selection of sporting tactics. Finally, from a methodological perspective, the output measure proposed seems to be suitable to represent reliably the sports results achieved by clubs in this qualifying competition type. Furthermore, our results are robust when applying alternative estimation methods. Regarding the results, some management implications are discussed and suggestions are made to boost the efficiency in inefficient clubs.

An Analysis of the Performance of Commercially Oriented Farms in Hungary

As a result of the economic restructuring and political reforms undertaken during the 1990s, Hungary has a varied set of farm types that encompass a wide array of different sizes, degrees of capital intensity and forms of ownership. This article explores the performance of Hungarian farms and concludes that, in contrast to other Central and Eastern European (CEE) countries, the majority of commercially oriented farms are profitable. However, estimates are sensitive to the valuation of own land and labour inputs. From the application of factor and cluster analysis, eight clusters of farms are profiled and the most competitive group identified. While the most profitable cluster also has the highest mean farm size, farm consolidation should not be treated as a panacea for dealing with low agricultural returns in the region.

Export performance: insights on the Spanish wine industry

This paper examines the relative importance of intention in an export performance model using data from a postal survey of a sample of Spanish wineries. The results show that a more active intention to export has some predictive value for success in foreign markets. Other contributory factors include professional experience, firm size, geographical location and institutional support.

Do ‘Protected Geographical Indications’ (PGI)-Certified Farms Perform Better? The Case of Beef Farms in Spain

European rural development policy is gaining in importance through one of its key instruments, the Protected Geographical Indications (PGI) system, which is designed to improve quality standards. Previous research has shown that PGI-certified beef farms tend to be more extensively managed operations that are better adapted to mountainous areas. This paper describes a comparative study of two production systems, one with PGI certification and one without, focusing on a number of economic variables. The results show a positive association between PGI production and profitability. In efficiency terms, non-certified farms show better pure technical efficiency scores, while PGI-certified holdings score higher on scale efficiency.