Analysis of production and investment efficiency in the Mexican food industry: Application of two-stage DEA

Abstract

The food industry in Mexico is a precarious sector and lags behind other manufacturing industries, it is made up mainly of small and medium-sized enterprises. Its importance in the food assurance of the country requires strategic monitoring of the yield and efficiency variables that allow successful interventions to improve results. Commonly, the efficiency in the agriculture sector is evaluated as a one-stage data envelopment analysis (DEA) process using a specific set of variables. In this article, we applied a two-stage process to evaluate the efficiency in the Mexican food industry. The first stage evaluates the efficiency of the production, whereas the second stage evaluates the efficiency of investments in the sector. The process is demonstrated on a sample of 1 672 Mexican municipalities using data from 2014 and 2019 Census. The results indicate a growth in production efficiency with significant differences between regions. Moreover, the results also revealed very low investment efficiency in the whole food sector with a negative tendency.

Data-Driven Evaluation and Optimization of Agricultural Environmental Efficiency with Carbon Emission Constraints

“…The CCR model and the BCC model are currently widely used in the study of AEE. For example, Yougbarã et al used this approach to analyze agricultural performance in Burkina Faso [31], Martin et al analyzed the production and investment efficiency of food processing [32], and Gurdeep et al evaluated the energy use efficiency of wheat in northwest India [33]. Slacks-Based Measure (SBM) models have been increasingly used, because they can better take into account slack improvements.…”

“…The AEE indicator system is a complex system, often accompanied by multiple inputs and multiple outputs. Martin et al considered agricultural labor and production materials as input indicators [32]. Yougbarã et al constructed an evaluation indicator system that included input indicators such as arable land area and labor input, and output indicators such as crop output [31].…”

“…Second, scholars have established different evaluation metrics due to the different focus of the study region and the study content [12,31,32,38,39,41,42]. Current scholars have less consideration of undesired outputs when evaluating AEE.…”

Estimating the hospitality efficiency in Mexico using Data Envelopment Analysis

“…De La Hoz et al [ 18 ] evaluated academic efficiency of 256 engineering programs at Colombian universities. Flegl et al [ 19 ] applied DEA to observe the production and investment efficiency of 1672 municipalities in the Mexican food industry. Chopra and Ramachandran [ 20 ] used DEA model to analyze water sector performance in 11 states in India.…”

An Approach to the Evaluation of the Overall Performance with Efficiency Measurements by Means of an Efficiency Evaluation Chain Using DEA and Fuzzy DEA

“…The performance evaluation of DMUs is given by developing the FMOO (fuzzy multi-objective optimistic) and FMOP (fuzzy multi-objective pessimistic) models [60]. The application of two-stage DEA to evaluate the production and investment efficiency in the food industry is noted in [57]. In [61] the intuitionistic fuzzy set theory is used in the application of two-stage DEA based on efficiency decomposition.…”