Heterogeneous Production Efficiency of Specialized Swine Producers

This research evaluates the efficiency of swine firms differing by specialization type and employed technologies. Measures of technical, allocative, scale, economic, and overall efficiency are separately and jointly estimated for farrow-to-finish, farrow-to-feeder, feeder-tofinish, farrow-to-weanling, weanling-to-feeder, and mixed operations. Findings confirm appreciable differences in efficiency and causes of efficiency. Results suggest that overall efficiency of farrow-to-finish and farrow-to-weanling operations is on average lower than farrow-to-feeder, feeder-to-finish, and weanling-to-feeder operations. In addition, Tobit models examining how demographic factors, farm type, and input expenses influence efficiency indicate additional variation across firm specializations. This information can help aid in making more appropriate decisions such as producers altering their input mixes or researchers evaluating the existence and implications of firm heterogeneity in an industry.