Production efficiency estimation of Kosovo beef fattening farms

Arben Musliu, Behlul Behluli, Blenda Fazliu, Yllka Dibrani, Shpend Kokolli, Leonart Gashi

Abstract: A possible accession in the European Union raises a significant opportunities and challenges for the beef-fattening sector in Kosovo. Toward EU accession process, the Kosovo beef sector will have to improve efficiency and competitiveness. The goal of this research study is motivated by the need to understand better the forces that drive competitiveness and the efficiency of the beef fattening sector in Kosovo. Data Envelopment Analyses was used to evaluate the production efficiency of Kosovo beef fattening farms. Research data were collected through surveys from 35 beef fattening farmers across two Kosovo regions. In total 710 fattened bulls were monitored for 180 days. Considering for suspected bias with the bootstrap input-oriented model, input efficiency ranged from 0.60-0.96 with an average of 0.88. Based on the farm, a naive model would induce a bias of 0.01-0.06 in input efficiency use. Research results indicate further input use decreases because the sampled farms are found to operate under decreasing returns to scale.

Keywords: Beef fattening; Bootstrap; DEA; Kosovo; Production efficiency

Date published: 2023-04-26