Technical Effiency in Ecuador’ Farms: Evidences of the Pandemic Impact

Abstract

The main point in the present article was the comparison of the Technical Efficiency (TE) in four years for milk production in Ecuador by the period 2018 – 2021, before and after the pandemic, and the determination of the factors related to the TE for the last year. The information from the official public database in the country were analyzed by the nonparametric technique called DEA including a bootstrap simulation. Once different variables were selected including aspects as livestock and labor, the TE with Variable Returns to Scale (VRS) with “output” orientation was calculated by each year and province. Among the provinces, statistically significant differences were found (P<0.1) for the TE means, and most of the efficient units were found throughout the Andean zone, in each year. Between the most important findings, it was important that the TE average after the beginning of the pandemic was statistically lower than the last 3 consecutive years under study (P<0.1) with 3% approximately of decrease, and the main factors related to this were multiple including labor characteristics, the field composition, and the supplies access during the pandemic. Finally, some implications for public policy were found around the gender in agriculture activities, the social security, and the difficulties in supplies access.