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Article

A DEA Model toward Efficiency Assessment of Olive Oil Cultivation

This version is not peer-reviewed.

Submitted:

05 January 2018

Posted:

08 January 2018

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Abstract
The production of olives and olive oil in the Mediterranean region is one of the most important cultivation. The continuous changes of the European Common Agricultural Policy (CAP) towards strengthening the influence of market forces, has increased the necessity for assessing the efficiency of production protocols or patterns being implemented by the farmers. The case of olive trees cultivation, despite the fact that it is very important for both farmers and consumers, has not been in depth analyzed regarding the efficiency of inputs being used during the production process. This study evaluates the efficiency rates of 100 agricultural holding specialized on olive trees cultivation in Greece, by implementing a DEA input oriented model. The inputs being used are land, fertilizers, agrochemicals, labour, and energy. The output being used is the revenue of each holding. The results quantify the significant differentiation of efficiency scores, providing evidence that there is space for restructuring the production process, in order to improve efficiency and decrease by this way the production cost of inefficient farmers.
Keywords: 
Subject: 
Business, Economics and Management  -   Economics
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
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