The Efficiency of Agricultural Production in FADN Regions in 1996-2011

Abstract

This paper examines the efficiency of agricultural production in the European Union and traces changes in the specialization of EU regions in terms of agricultural production using a territorial division based on the Farm Accountancy Data Network (FADN). The studied period is from 1996 to 2011. The basic tool of quantitative analysis is the Data Envelopment Analysis method for testing the relative efficiency of objects. It is assumed that FADN regions are Decision Making Units as (DMUs) as defined by the DEA (Data Envelopment Analysis) method. The specialization of a region is defined in terms of agricultural production and changes in specialization and the technological efficiency of production in the studied period are examined. Special attention is paid to FADN regions specializing in livestock production and a detailed classification of these regions by production efficiency is offered. It is examined how production efficiency changed in regions focusing on livestock production and whether or not these changes were influenced by the efficiency of agricultural production in neighboring regions. The study showed that there were no distinct patterns in the efficiency of FADN regions and no clear relationship between the efficiency of a specific region and the efficiency and specialization of neighboring regions.

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