Technical efficiency in family dairy farms in the State of Minas Gerais in 2021

Abstract:

Family dairy farming is relevant for national agriculture which, although it contributes to the generation of wealth and income, faces low efficiency, productivity and high production costs. The objective was to analyze the technical efficiency of family dairy farms in the State of Minas Gerais. Data Envelopment Analysis (DEA) with input-oriented BCC model was used. The higher the efficiency level of the DMUs, the fewer resources were used in excess. It was also identified the lack of DMUs that performed preventive maintenance of machines, implements and improvements, justifying the increase in the use, mainly, of the MIB input (maintenance of machines, implements and improvements). With this research, the Milk Input Commitment Index (ICIL) was suggested, which shows the percentage of production that is committed to purchase a given input. The higher the efficiency level of the DMUs, the lower the ICIL, which went from 49.36% (efficient) to 67.47% (low efficiency). This proved to be an important indicator of efficiency of dairy properties, responsible for showing the amount of milk produced that is committed to the payment of inputs used in the dairy activity. It also proved to be a valuable instrument to be used as a benchmark in dairy farms.

Keywords:
Data Envelopment Analysis (DEA); benchmark; production scale; family labor; dairy farming