Economic Efficiency of Cattle-Fattening Farms in Amasya Province, Turkey

Abstract

Over the last decade, beef cattle production has increased in importance in Turkey due to growing demand, which has been accompanied by an increased supply response. However, there is insufficient information on the productive efficiency and productivity of cattle-fattening farms. This study evaluated productive efficiency measures for sample cattle-fattening farms in Amasya Province, Turkey and explored the determinants of economic efficiency. Data Envelopment Analysis (DEA) was used to calculate productive efficiency measures. Farm managers from 54 randomly selected farms were interviewed in the 2004-2005 production periods. Economically inefficient farms needed to lower their costs by 18% to perform as well as the best-practice farms in the sample. Positive relationships were found between economic efficiency and feeding frequency, the ratio of Holsteins in the herd, fattening period, existence of a management record, contacts with extension services and credit use. Economically efficient farms had larger barns, more animals and gained much more income per animal compared to inefficient farms. Policy measures aimed at developing better farm-level training and farm extension programs, helping farm operators improve their herd and providing farmers with greater access to credit are recommended to increase productive efficiency in the research area.