Technical and Scale Efficiency of farms producing grapes for wine
Abstract
climatechange and the subsequent requirements to comply with environmental standards, continuoustechnological change, and the need to adapt it, adjust, and remain competitive. The COVID-19 pandemic and the economic hardship it brought about, followed by the current energy crisis,make it imperative to address issues of competitiveness and efficiency of farm units. Theseunfavorable developments particularly affect mountainous and disadvantaged rural areassuch as the Region of Western Macedonia in Greece. Furthermore, the decarbonizationprocess that this region is undergoing, leads to a period of uncertainty, especially in relationto employment. The cultivation of vineyards and wine production are dominant economicactivities with Xinomavro being the main grape for wine variety. The efficiency of grape-producing farms are considered important for the whole wine supply chain. The objective of this paper is to estimate the technical and scale efficiency of wine-related agricultural firms in the region of Western Macedonia, by applying the DEA methodology. An output-oriented empirical model was applied for the estimation of technical and scale efficiency of farms producing grapes for wine.
Keywords: technical efficiency, scale efficiency, wine grape cultivation, Western Macedonia, wineries
References
[1] Food and Agriculture Organization of the United Nations (FAO). Compare data. FAO (Internet). 2020 [cited 2022 Apr 20]. Available from: https://www.fao.org/faostat/en/#compare
[2] Eurostat. Grapes by production. Eurostat [Internet]. 2021[cited 2022 Apr 20]. Available from: https://ec.europa.eu/eurostat/databrowser/view/tag00121/default/ bar?lang=en
[3] Hellenic Statistical Authority. National accounts. Hellenic Statistical Authority [Internet]. 2021 [cited 2022 Mar 15]. Available from: https://www.statistics.gr/el/statistics/eco
[4] Hellenic Statistical Authority. National accounts. Hellenic Statistical Authority [Internet]. 2019 [cited 2022 Mar 20]. Available from: https://www.statistics.gr/el/statistics/eco
[5] Hellenic Statistical Authority. National accounts. Hellenic Statistical Authority [Internet]. 2000 [cited 2022 Mar 20]. Available from: https://www.statistics.gr/el/statistics/eco
[6] Hellenic Statistical Authority. National accounts. Hellenic Statistical Authority [Internet]. 2011 [cited 2022 Mar 20]. Available from: https://www.statistics.gr/el/statistics/eco
[7] Hellenic Statistical Authority. National accounts. Hellenic Statistical Authority [Internet]. 2016 [cited 2022 Mar 20]. Available from: https://www.statistics.gr/el/statistics/eco
[8] Hellenic Statistical Authority. National accounts. Hellenic Statistical Authority [Internet]. 2019 [cited 2022 Mar 20]. Available from: https://www.statistics.gr/el/statistics/eco
[9] Operational prgram of the Region of W.Macedonia. Operational program of the Region of Western Macedonia 2015-2019, Part Α: Strategic Planning. Greek Republic; 2015.
[10] Manevska-Tasevska G. Influence of product assortment on the efficiency of grape - Growing family farms in Macedonia - A dea approach. American Association of Wine Economists. 2011;94:1–20.
[11] Niranjan N, Uma K, Shreedevi G. A study on efficient value chain management of grapes in Northern Karnataka. International Journal of Business Management & Research. 2018;8(2):33–42.
[12] Manevska-Tasevska G, Hansson H. Does Managerial behavior determine farm technical efficiency? A case of grape production in an economy in transition. Managerial and Decision Economics. 2011;32:399–412.
[13] Condradie B, Piesse J, Thirtle C, Vink N. South Africa wine grape production, 2005– 2015: Regional comparisons of scale and technical efficiencies and total factor productibity. Agricultural Economics Research, Policy and Practice in South Africa. 2018;58(1):53–67.
[14] Santos M, Rodriguez XA, Marta-Costa A. Productive efficiency of wine grape producers in the North of Portugal. Wine Economics and Policy. 2021;10(2):3–14.
[15] Santos MQ, Rodriguez X, Marta-Costa A. Efficiency analysis of viticulture systems in the Portuguese Douro region. Emerald Insight. 2020;32(4):573–591.
[16] Vazquest-Rowe I, Villanueva-Rey P, Iribarren D, Moreira MT, Feijoo G. Joint life cycle assessment and data envelopment analysis of grape production for vinification in the Rias Baixas appellation (NW Spain). Journal of Cleaner Production. 2011;27:92–102.
[17] Urso A, Timpanaro G, Caracciolo F, Cembalo L. Efficiency analysis of Italian wine producers. Science Direct, Wine Economics and Policy. 2017;3–12.
[18] Naglova Z, Simpachova Pechrova M. Are wine producers with subsidies more technically efficient? Central European Business Review. 2019;8(1):1–14.
[19] Farrell MJ. The measurement of Productive Efficiency. Journal of the Royal Statistical Society, Series A (General). 1957;120(3):253–290.
[20] Cooper WW, Seiford LM, Tone K. Data envelopment analysis, a comprehensive text with models, appliciations, references and dea - Solver Software. Στο: New York, Boston, Dordrecht, London, Moscow: Kluwer Academic Publishers; 2002.
[21] Cooper WW, Seiford LM, Tone K. Data envelopement analysis. 2nd ed. New York: Springer; 2007.
[22] Banker RD, Charnes A, Cooper WW. Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science. 1984;30(9):1078– 1092.
[23] Charnes A, Cooper WW, Rhodes E. Measuring the efficiency of decision making units. European Journal of Operational Research. 1978;2(6):429–444.
[24] Dimara E, Pantzios CJ, Skuras D, Tsekouras K. The impacts of regulated notions of quality on farm efficiency: A DEA application. European Journal of Operational Research. 2003;161:416–431.
[25] Selleres-Rubio R, Alampi Sottini V, Menghini S. Productivity growth in the winery sector: Evidence from Italy and Spain. Emerald Insight. 2015;28(1):59–75.
[26] Karagiannis G, Melfou K. Efficiency analysis in a sample of PGI bean producers in Greece. Agricultural Economics Review. 2015;16(2):14.
[27] Emvalotis A, Katsis A, Sideridis G. 2006. Statistical methodology of educational research. 1st ed. Greece: University of the Aegean; 2006 [cited 2022 May 10]. Available from: http://msc.actuar.aegean.gr/notes/Embalotis%20et%20al_%20Stat_Notes.pdf
[28] Zafiropoulos K. Statistical analysis using a computer, Helpful Notes for SPSS. Greece: University of Macedonia, Department of International and European Studies. n.d. [cited 2021 Feb 20].
[29] Lopez FJ, Ho JC, Ruiz-Torres AJ. A computanional analysis of the impact of correlation and data translation on DEA efficiency scores. Journal of Industrial and Production Engineering. 2016;33(3):415–429.
[30] Agha Alizadeh HH, Taromi K. An investigation of energy use efficiency and CO2 emissions for grape production in Zanjan Province of Iran. International Journal of Advanced Biological and Biomedical Research. 2014;2(7):2249–2258.
[31] Sellers R, Alampi-Sottini V. The influence of size on winery performance: Evidence from Italy. Wine Economics and Policy, Science Direct. 2016;5:33–41.
[32] Selleres-Rubio R, Alampi Sottini V, Menghini S. Productivity growth in the winery sector: Evidence from Italy and Spain. Emerald Insight. 2015;28(1):59–75.
[33] Artuno U, Caracciolo G, Cembalo Luigi F. Efficiency analysis of Italian wine producers. Wine Economics and Policy. 2018;7(1):3–12.
[34] Khoshroo A, Mulwa R, Emrouznejad A, Arabi B. A non-parametric Data Envelopmnet Analysis approach for improving energy efficiency of grape production. Energy. 2013;63:189–194.
[35] Saeid S-Y, Sadegh K, Seyed AM. Energy efficiency for open-field grape production in Iran using Data Envelopment Analysis (DEA) approach. International Journal of Farming and Allied Sciences. 2014:637–646.
[36] Namdari M, Mobtaker HG, Rasouli M. Using DEA models to measure energy efficiency of grape production. International Journal of Agricultrural Management and Development. 2021:485–493.
[37] Kounetas K, Chatzistamoulou N. Introduction to operations research and linear programming, problem solving with R. Athens: Hellenic Academic Electronic Textbooks and Aids; 2015.