An analysis of the Brazilian dairy industry efficiency level


Citation

Lima L. P, . and Ribeiro G. B. D., . and Silva C. A. B., . and Perez R., . An analysis of the Brazilian dairy industry efficiency level. pp. 2478-2485. ISSN 2231-7546

Abstract

Milk is one of the most consumed agricultural products in Brazil and its processing industry has a key role in absorbing its raw material providing milk products and generating jobs and income. Therefore this study investigates the technical and scale efficiency levels of the Brazilian dairy industry from a multi-input perspective. Primary data from 40 dairy establishments distributed among the Brazilian regions was collected from online surveys. An exploratory analysis was performed to sample the characterization using the Data Envelopment Analysis (DEA) with input-orientation to obtain the technical and scale efficiency scores of the Brazilian dairy industry based on the use of the inputs: energy (thermal and electrical) raw material (milk) and income generation (product). The results showed that the Brazilian dairy industry has 64.7 of pure technical efficiency and 73.8 of scale efficiency. In general the main inefficiency is associated with the energy use (23.2) and raw material (24.1). These results should be considered essential for this industry as dairy establishments have demonstrated greater efficiency in adopting the most appropriate production scale (scale efficiency) and that they can be more efficient especially by reducing their energy consumption their processing losses and increasing the raw milk earned value.


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Abstract

Milk is one of the most consumed agricultural products in Brazil and its processing industry has a key role in absorbing its raw material providing milk products and generating jobs and income. Therefore this study investigates the technical and scale efficiency levels of the Brazilian dairy industry from a multi-input perspective. Primary data from 40 dairy establishments distributed among the Brazilian regions was collected from online surveys. An exploratory analysis was performed to sample the characterization using the Data Envelopment Analysis (DEA) with input-orientation to obtain the technical and scale efficiency scores of the Brazilian dairy industry based on the use of the inputs: energy (thermal and electrical) raw material (milk) and income generation (product). The results showed that the Brazilian dairy industry has 64.7 of pure technical efficiency and 73.8 of scale efficiency. In general the main inefficiency is associated with the energy use (23.2) and raw material (24.1). These results should be considered essential for this industry as dairy establishments have demonstrated greater efficiency in adopting the most appropriate production scale (scale efficiency) and that they can be more efficient especially by reducing their energy consumption their processing losses and increasing the raw milk earned value.

Additional Metadata

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Item Type: Article
AGROVOC Term: Dairy industry
AGROVOC Term: Milk byproducts
AGROVOC Term: Surveys
AGROVOC Term: Questionnaires
AGROVOC Term: Inputs
AGROVOC Term: Data analysis
AGROVOC Term: Raw materials
AGROVOC Term: Milk
AGROVOC Term: Electrical energy
AGROVOC Term: Thermal energy
Depositing User: Ms. Suzila Mohamad Kasim
Last Modified: 24 Apr 2025 06:29
URI: http://webagris.upm.edu.my/id/eprint/24947

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