Measuring the Technical and Economic Efficiencies of the Dry Apricot Farms in Turkey

Abstract

The aims of the study were to estimate the efficiency measures of dry apricot farms in Malatya province of Turkey and to explore determinants of cost inefficiency. Data Envelopment Analysis (DEA) was used to measure efficiencies. Data used in the study was obtained from 97 farms selected by stratified random sampling method. Research results showed that in the first group, the mean technical, allocative and cost efficiencies for sample farms were measured to be 0.738, 0.760 and 0.558, respectively. In the second group, they were 0.905, 0.762 and 0.697, respectively. Efficiency scores revealed that inefficient farms in both farm size groups might reduce the production costs by 30.3% and 44.2%, respectively. Based on the results of the decomposition of the technical efficiency, pure technical inefficiency was the primary cause of technical inefficiency in both groups. Research results also showed that the education level of farm head and non-farm income influenced the cost inefficiency negatively while the variables of tractor ownership, the ratio of apricot land size to farm size, number of apricot trees and marketing cost had the positive effect on cost inefficiency in the first group. In the second group, there was positive relationship between cost inefficiency and the variables of family size, number of irrigation and number of apricot trees. The study suggested that designing farmers training, extension programs and income diversification increase economic efficiency in the research area. Rearranging the structure of the farm and controlling marketing cost may be also beneficial in the research area.